Understanding Knowledge Means In A Business Commerce Essay

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Today, many company to apply knowledge in the work so what knowledge mean? Any organization has knowledge. Knowledge be in employee's head, in the operate data, in policy or in demonstrators process. Knowledge is expressed through culture and skills of members. Many enterprises "do not know what" but in reality, they are in the process of sources of intangible assets are valued that is knowledge. Evolution of scientific epistemology formed a rank structure of knowledge creation: from data to information to knowledge; data is a set of events, objective facts, desultory to get presented without verdict or not sticking to the context. Data becomes information when it is classified, analysis, and general and placed in a context and can become aware of the recipient. Information is data associated with a contact or a purpose. However, information still exists independently with human thinking. After people to receive information, process information, to catch and to research so information will become knowledge. Knowledge can be seen as information that it achieves clarity, decision and value. Creative in solving is the main motivation for the creation of knowledge. We can see the data and information is processed and expressed and become meaningful through a process of thinking critically. Data and information will become so data and information would be valuable and use higher. Knowledge has two kinds such as explicit knowledge and tacit knowledge. Explicit knowledge is knowledge codified in written, documents or reports. Tacit knowledge is knowledge hard not to be systematize in documents, document, this knowledge is an individual associated with the context and the specific job. Although, tacit knowledge is difficult to take form the documents, but operating in the human brain.

1.b) How understand about knowledge management mean?

Knowledge management is gathering of creative process, gathering, storing, maintaining and disseminating or sharing knowledge. Knowledge management has been associated with information gathering, processing, storing, sharing and use in higher forms is knowledge. However, knowledge management is formed by through the following factors: intelligence, knowledge, information and data. These elements are arranged in a triangle from the top to down but it can support each other. Intelligence can help people with cognitive abilities and creativity in work, when people have intelligence, when people have the intelligence they certainly have the knowledge or understanding, depending on each person because intellectuals and intelligence exists in every human it is underground nature, depending on the circumstances of each person. After people have knowledge, they are need information; it is data filter to suit the recipient. Data is the existence of knowledge in different forms of storage such as paper, computer files … data and information exists clear and it can be encoded and transmitted more easily. In the enterprise, knowledge management has some points very important to help the business grow such as customer knowledge can help business has more customer, knowledge in product can help develop value of product, knowledge in people will help business usually change and choice people have talent help business, knowledge in processes technological know-how needed, organization memory help business know do what, knowledge in relationship can help business must take the good relationship to make more partners, knowledge assets is important capital of business. Druker is conclude "we are entering a knowledge society in which the basic economic resource is not capital which is knowledge and Knowledge has become the main economic resources and resources are dominated and may be unique of competitive advantage. However, with the development of information technology from the early 1990s to now, companies in the world and researchers have applied and approach a new trend in business development and organizations such as: knowledge management. So, the nature of knowledge management is the process of creation, sharing, exploitation, utilization and development of knowledge assets in organizations and knowledge assets in organizations and transform assets intangible into assets have economic value or that the material value of the organization.

2.a) Competitive advantage of companies when using knowledge management

In century 21, knowledge management increasingly becomes important for the development of company as well as a country. In modern organizations today, Knowledge management is considered key success factors and at the same time it also became a strategy to compete effectively for the company. Today the world is entering an era of information and knowledge. This time, companies or organizations which know capture and use resources effective knowledge management from their company they will have a very high competitive advantage to ensure the sustainable development of the company or their organization. For example, let us see the competitiveness of enterprises, thanks to knowledge management as competition from small companies with other companies and larger companies is small companies must also recourse to knowledge management to be able to compete with other companies can make their knowledge available to value through products or services, so now is the era of knowledge economy and globalization therefore that small companies should adapt for use knowledge management to be able to compete with other companies and can survive and develop. However, compared with large companies, most small companies can hardly compete with large companies because small companies do not have enough resources for investment and research for development or application of new technologies or implementing knowledge management. Therefore, small companies need to work hard also need help from the government to turn the company by knowledge companies.

2.b) Knowledge management bring competitive advantage for companies

Increasingly fierce competition which requires each company usually innovation product and improvement activities based on the company's knowledge management. Successful companies' because they are known to grasp quickly, timely and accurate processing of information sources (markets, customers, products ...). Information change into knowledge that is the company's competitive advantage, there are also some companies do not change into knowledge. If the company knew use knowledge management applications in competition with other companies it will bring efficiency to the company or organization as increase productivity, promote innovation, improve management efficiency, to raise demand of customer, attract and exploit the talents and encourage learning, sharing. Investors always search companies have good management capacity and that adapt to market changes instead of focusing on the value of company assets. Today, the company's value was assessed through product / service, the company now attaches great importance to the use of knowledge management as a competitive advantage of companies.

3) Knowledge management can help managers

In the knowledge economy, creation, transmission, storage, development and use of knowledge, it can be able to dominate the economic activities, science and technology. If the manager knows the application successful of the knowledge management in the company, they can develop business in company and knowledge management to help manager to innovation, create new ideas and they have can exploit the potential existing within them that they do not know, they can take the experience by the use of knowledge management to turn them into knowledge can be used when the manager needs, knowledge management can help managers to easily search and use the knowledge professional when they store it in mind, it can help managers share their knowledge with staff available to help employees have more knowledge and expertise to help companies develop more and more, same time it can help managers decide to work more quickly and intelligence in management when they worked in the company. I'll give an example related to the application manager that knowledge management work as Tam Viet group in 2007, when a deputy director take out of own company and open new company and direct competition with the former company, deputy director know applied knowledge management in the working time at old company and deputy director have habits such as sharing, capture, storage, evaluate and innovation knowledge, so when Tam Viet were not affected when a person in high position to depart for company, the deputy director know applications from knowledge management.

4) The skills of leadership and management when using knowledge management

In fact, the knowledge often exists separately in each individual through the process of absorbing their own information and only they can use the knowledge exists separately in them. If they do not share that knowledge, who can not apply this knowledge, this knowledge will be vulnerable to wear and can not to promote its capabilities. Therefore, to the knowledge of individuals to become the knowledge assets of the company or organization, so people could exploit joint use and development require a mechanism, the creative process, storing, sharing and development of each organization or company, to achieve this, companies or organizations that need skill the leadership and management by means of applying knowledge management as leader or manager must know encourage individuals to share knowledge, so if the leadership or management must actively participate in knowledge sharing in a positive way to guide the development of knowledge resources exist separately in theirs. If the leadership or management the use of knowledge management success, they will enrich the knowledge of individuals and also a motivation for continuous learning of individuals. This individual will help the company or organization grow more. For an example, if leaders or managers cannot to persuade these individuals to share knowledge, they will be limited in knowledge and success in the use of knowledge is very low.

5) Understand about knowledge management life cycle.

Knowledge management life cycle model is held closed circle and five basic processes can be considered by knowledge management such as creating, sharing, structuring, using, and auditing in turn that is called "knowledge management life cycle" model. I will give an example for each basic processes of knowledge management life cycle; Creativity is essential elements for companies by to the creativity that new companies can grow and compete with each other, the rise of powerful companies like Toyota, Microsoft, Nokia or Coca-Cola . . . proved that. These companies have done the efficiency of knowledge management to create strategic competitive advantage. Thanks to efforts to improve work processes and creative ideas to fully exploit the advantages of collective wisdom, they constantly improved to make new products. If we are share knowledge with other people by written documentation, exchange, we will have the opportunity to learn more each other's experiences, Coca Cola Company are share knowledge with other branches in countries around the world therefore they have gradually achieved a great success and has created a sustainable brand for the company. Knowledge management can help companies have a strict structure for easy management of parts within the company, Microsoft has very tight structure so they can manage and handle the rapidly work. Companies are use knowledge management to develop by using the shared knowledge from individuals to corporate development, Apple Company are uses the application of knowledge and always for the new products so the company has created a firm foothold in the electronic technology being developed today. Knowledge management will help audit to easily check the truthfulness and rationality of the documents, data audit of the company or organization.


To sum up, knowledge management or knowledge is very important for companies because it helps companies develop strategies for the company. Same time it also helps the manager has the creativity and to produce new products, it also helps managers better understand their employees thanks to share knowledge. Knowledge management also provides opportunities to transform knowledge into the system helps the company create a competitive advantage were continuous, it can create economic value or market value for the company. If companies are knowledge management better, they can understand the company and know the strengths and weaknesses of the companies from which to propose success in the knowledge economy