The Modern Business System and New Techniques of Management - Essay Example

Executive Summary Today where there is plethora of Globalization, the business of the world has got inspired from modern techniques of management (Jennex 2007). One of the techniques includes knowledge management practice, where every man and business is part of its managerial system. One of the purposes behind knowledge management adaptation is communication “connectivity”, one purpose that has become a necessity for the merchants of the modern world (Jennex 2007). This is not all that assures the worth of Knowledge Management Systems, as there are further reasons (social networking, information control, information management, data mining) of why the businesses have adapted such vital systems (Jennex 2007). This study is going to evaluate and access the importance of knowledge management system and its submerging tools “social networking”, in respect of the modern business and apprehension (Ahmed, Lim and Loh 2012). The sources taken are the peer-journals on knowledge management practice and social networking tools. Further secondary sources are books, scholarly articles and reports to bring the most out on the subject. The aim of the study is to come up with a profound understanding on the subject, in order to access the future impact of the KM practice on businesses and their systems (Ahmed, Lim and Loh 2012). Knowledge Management and Social Networking Practice Main Body Evaluation of the Application of KMS in Meeting Business Goals In the modern world where there are peculiar information reforms, the adaptation of knowledge management systems has become widespread. Organizations uphold the importance of KM systems; it is because the systems are supportive and comprehensively applicable (Brown and Duguid, The Social Life of Information 2002). Knowledge itself is an asset and so as its systems for organizations, which are viable, unique and flexible to apply. Organizations that acquire knowledge and its system hold a great competitive advantage. The advantage is in terms of internal business operations and in the external business environment “market-customers”. Meanwhile, there are direct affects that knowledge management systems replicate in an entire business system (Brown and Duguid, The Social Life of Information 2002). In organizations knowledge management systems play technological roles. Such systems assert technology in the brightest way applicable, which means that systems make information valid and authentic to bring the best out of the ordinary (Brown and Duguid, The Social Life of Information 2000). The systems are significant to enjoin information with experience, which means that knowledge is passed on to employees with their personal skills and potentials. This is by passing information to the internals of the organization; knowledge management systems find the overall good for the organization. This good is in terms of performance, progression and overall organization deliverance in a competitive business environment (Brown and Duguid, The Social Life of Information 2000). According to the modern literature, there are businesses that extend the importance of knowledge management systems and their adaptation. Businesses like amazon.com which are on e-commerce utilize information tools “electronic bots” to update data and information for human provision (Brown and Duguid, The Social Life of Information 2000). Such data is managed on the basis of past records like past online purchases to predict future trends and to summarize the future sales packages. These are all provisions of knowledge management systems, which engage people with businesses and their online product offerings (Jennex 2007). In further projection of the literature, there are organizations “Chiat/Day advertising agency” that imply knowledge management practices for the betterment of their employees (Brown and Duguid, The Social Life of Information 2000). The employees find a great flexibility in distant working, so they are provided with knowledge access tools (notebooks, i-pads and laptops) to come up with better performance and integration (Brown and Duguid, The Social Life of Information 2000). Meanwhile, there are organizations that bring knowledge management systems for electronic communication. Like there are field workers “anthropologists, sociologists” who would require such effective tools for faster communication. This is how by integrating knowledge and resource, organizations find a room in developing employee’s performance (Brown and Duguid, The Social Life of Information 2000). According to the author John Seely Brown (director of Xerox International), the organization implies knowledge management practice via a matrix pattern. By applying the matrix pattern, knowledge is distributed in vertical columns and in horizontal rows within the organization system. All the knowledge acquired vertically is gathered in Xerox’s PARC (Palo Alto Research Centre), while the knowledge forwarded in horizontal rows is used for the communication purpose (Brown and Duguid, The Social Life of Information 2000). This is how Xerox holds a cross communication system in which one part of the system gathers knowledge and the other distributes it through electronic modes of communication (Brown and Duguid, The Social Life of Information 2002). The idea at Xerox knowledge management system is to share knowledge at the highest level. The experts think that by sharing knowledge a response can be generated, which further validates and authenticates knowledge at its best. For such reason experts at Xerox avoid knowledge monopoly; an activity that frails the knowledge improvement process (Jennex 2007). In other studies, the literature indicates an intense use of information systems “systems for knowledge management” in the modern enterprises. The trend in enterprises came in when there were personal computers, mainframes and information workstations adjusted to bring faster networking and communication within the organization (1960s) (Kim 2012). This was how the trend evolved and brought the vigorous use of modern communication tools “online social networking”. This was a technological revolution to knowledge management, which got extended in the 21st century enterprises (Kim 2012). The literature indicates several firms relying on online social media networking for communication and organizational integration (Kim 2012). According to the literature, there are majority of IBM employees that rely on distant working. 40% of IBM employees are part of IBM online resource working, which gives them an opportunity to work persistently and in a coordinative manner. Cisco is another firm that deploys 60% of its employees on distant office working, as the company believes that not necessarily office presence can bring the growth and productivity of employees (Kim 2012). According to Gupta and Carpenter study, it is employees’ skill and knowledge that raises organizational value. The study suggested that social networking is the best podium to exchange employees’ knowledge and skill which further work out for the enterprise growth and success (Kim 2012). In context of the literature, a finger is pointing out to the favors of knowledge management tools. They are ideal to get applied, especially when modern business is facing deep market challenges and competition (Kim 2012). Introducing Social Networking Practices and Tools in a Business According to the modern literature, social networking has become widespread in the business. There are large numbers of groups including insurance companies, health institutions, financial institutions, consultants and banks that apply social networking models within their organization systems (Jennex 2007). With the presence of internet and social media websites, the practice of social networking has become flexible and inexpensive to adapt. Due to all such, businesses find a great extension in adapting social media networking tools, where there is much accessibility, and clarity to share information and knowledge (Jennex 2007). The literature projects that social media networking is part of knowledge management practice. It is one tool that declares to be one major section of organizational knowledge management system. The fact is true for modern enterprises as they are the ones who have understand the technological feature of social media communication (Jennex 2007). Case of Xerox Corporation In the latest findings, Xerox Corporation is one of the companies that have applied the concept of knowledge management and its submerging tools (social networking) (Xerox Corporation 2012). Xerox is a US based firm, which administers and manages to consult operations for other businesses. The main industry of Xerox is BPO (business process outsourcing) and DM (document management) (Xerox Corporation 2012). Reasons that Warrant Social Networking at Xerox Corporation Xerox finds a direct need of social networking tools to get applied within the organization system. The main reason that warrants social networking practice at Xerox is globalization. The company is internalized and works at different sectors of the business, like healthcare, energy, manufacturing or education, for which it requires a pervasive application of social networking tools, to lead the business internally and on the global level. Via social media portals (facebook, twitter) and social media groups (youtube, my space), the experts at the company find inexpensive ways to market their business (Xerox Corporation 2012). This is one of the methods that glows Xerox market status on the highest international level (Xerox Corporation 2012). According to modern literature, experts at Xerox make creative use of social media networks. Whether it is about business dealerships, customer engagement, or partnerships, the experts utilize social media to build the business networks worldwide. These are few major reasons that assert social networking as a notion at Xerox Corporation (Postman, 2009, pp.104-105). Challenges that gate Social networking practice at Xerox In modern studies, it has been projected that every organization holds a challenge to apply social networking practice. The same has been understood by Xerox Corporation, where there were several barriers to hinder the application of social networking tools and practices. There were reputational, legal and social barriers that retreated Xerox on social networking practice (Forrester Consulting 2010). Information control was the main challenge for Xerox, as social media websites provided a major drag to uplift the information, which if lifted badly can bring the extensive damage to the company. Similarly, there were challenges to control patent information (intellectual property), which if leaked could take Xerox to billion dollars loss at one time of replication. Apart from all there were challenges of privacy and media risk, which gave further fear to Xerox to share its market information (Forrester Consulting 2010). This brought a need of employees training programs, which were to understand social networking in a better way and in a more rectifying manner (Forrester Consulting 2010). Case of Intel Corporation In recent findings, Intel is another corporation that implies social networking practice within company’s business system (Jennex 2007). The Corporation is a globally recognized software seller which has named its social media tools (websites, social media groups) as internet-facing applications (Intel IT 2011). The modern literature indicates that Intel has always admired its social networking practice, as it is one activity that provides agility and efficiency to the company internal operations (Intel IT 2011). In adaptation, Intel is no different from Xerox as to a major extent both companies are IT based merchants and hold a similar requirement to apply social networking practice. Meanwhile, Intel faces challenges of security lack, communicational problem, and internal lack of social media acceptance (Intel IT 2011). Intel communicates customers through centralized host servers, which are interconnected with all the other sub-servers present at one time of the web. If one of the servers gets hacked or intruded, it puts impact on rest of the virtualized systems, which is the main source of Intel social media networking (Intel IT 2011). This raises the challenge of security for Intel Corporation, which majorly relies on technology and advanced social networking practices for communication. Apart from all, the challenges are of conventional social media tools which contradicted the advanced methods of Intel in social networking. Intel has remained on the non-conventional methods like Intel Student Lounge, Host networking, and communication via mobile networks, which hindered Intel in accepting the conventional modes of social networking practice (Intel IT 2011). This was an extending challenge for Intel to adapt the conventional social networking practice (Jennex 2007). On the recent, Intel has strived to adjust on the conventional social networking practice, like the company has adapted the tools of modern apprehension including facebook and twitter (Intel 2012). In accordance with the demand perspective, Intel has provided features of social media websites in their products (desktops, laptops and notebooks). This is one challenge that Intel has accepted in the most planned and organized technological ways (Raphael 2011). Future Impact of Social Networking Practices and Tools The future impact of social networking practices can be understood if one analyzes the scenario of the modern business world. According to Nielson reports, out of five regular internet users, four are definite to come on social networking application (Antonio 2011). This shows that social media networking has become the culture of the World Wide Web user. The same trend has been followed in businesses, where employees and work members all come on social media groups and practices (Antonio 2011). The trend is global and so as its future impact on the world business industry, where businesses are linked with businesses to serve the global customers (Antonio 2011). Businesses striving competitive advantage have understood the importance of such modern age knowledge management tools (social media networking). Social media networking has become a culture, a notion adapted by all media partners and traders (Zyl 2009). The culture is growing day by day and hence preparing the strivers of competition to work on their peripheral grounds. The impact will be in terms of raising the competition, like organizations which are on the culture of social networking will have to understand the strengths and weaknesses of the system (Zyl 2009). This is how the more organizations are prepared on social media networking, the better they will hold a competitive advantage in the business (Zyl 2009). For striving organizations, the impact will be there in the internal business environment, and so as the impact will be there to allocate on the external business grounds. Enterprises accepting the culture of knowledge management will have to accept it in one form of a culture (Zyl 2009). This means that employees would have to fall in the same culture, and so as work policies and administration to meet the requirement of the system (Jennex 2007). Similarly, for driving the impact externally, organizations will first have to drive it from the inside. This is how by accepting social networking practices in cultural format will evolve the overall benefit for the organizations (Zyl 2009). The studies have projected that social networking practice has enhanced employee communication and exchange skills, which in the future is going to be more pervasive and progressive (Zyl 2009). Employee being a central resource for an organization is all worth benefit in the future, if it is paddling with an extensive amount of knowledge at one time of activity (Kouzmin and Sankaran 2005). Social networking tools and practices have played a decisive role in this manner as it has acknowledged employee skill and talent. The practice has formulized the self-motivation attitude in employees, as they find a free hand on social media networks to communicate with their bosses (Jennex 2007). This is a central driver for enterprises striving in competition, because by having knowledge based workforce, they are strong to intrude the global market competition (Jennex 2007). According to empirical evidences, firms will have to allocate social networking practice in respect of their organizational structures and systems (Antonio 2011). Likewise, Ford Motors adjusts yammer for internal networking and communication, while Starbucks utilize Facebook, Twitter and Youtube for their organizational suitability. It all depends on how an organization operates and what are their cultural systems and goals to accept knowledge management tools (Kouzmin and Sankaran 2005). In several other studies “study of Daniel Hong-lead analyst at Ovum”, social media networks are going to impact organizations external business environment, especially those businesses which have introduced smart and innovative tools of social media interaction (Antonio 2011). The study projects that by adding such powerful tools of social media “mobile networks”, there will be a true engagement of customers and organizations (Kouzmin and Sankaran 2005). The tools will strengthen the relationship as customers will be able to integrate with organizations 24 hours a day. This is all because of such effective tools that settle relationship between organizations and their external business environment (customers) (Zyl 2009). The modern text indicates immense affect of social customer care. The time is going to mature the social customer care service; an activity that drives competition in the market and compels competitive advantage for the organization in the market level (Antonio 2011). By having social customer care, organizations will be able to meet customer complaints proactively and in response to one-touch mobile operation (Antonio 2011). This is the glimpse of social media networking, which will bring technological impacts for businesses striving for competitive advantage. Those who will understand the benefits of technology will be able to retrieve the advantage, but those who will fail to understand, they will have to give away the benefit (competitive advantage) to other organizations (Kouzmin & Sankaran, 2005, pp.325). This is one major impact that technological KM tools will replicate in the future entrepreneurship system (Thierauf, 1999, pp.47). Conclusion In the heart of Globalization, the modern business system has adapted new techniques of management. Knowledge management is one of the practices, a technique that is part of the modern business system. There are knowledge management systems that assist organizations on different activities like in communication, social networking, information control, information management and data mining etc (Brown and Duguid, The Social Life of Information 2002). Knowledge management systems apply technology to get the best out of the ordinary. The systems filter, mesh and distribute knowledge and make it worth benefit for the organization on the long terms (Forrester Consulting 2010). The systems are effective in driving competitive advantage for organizations, especially for those organizations which are functional in highest competitive grounds. In the modern business age where knowledge is a true asset, KM systems play decisive roles in actualizing knowledge at its best (Kim 2012). There are different organizations that adapt knowledge management practice and tools in the modern business competition. Xerox International is one of the firms that believe in knowledge based systems. The firm believes in strength of sharing knowledge and bringing it for the good of organization (Kim 2012). At Xerox International, there is a cross-communication setup which settles knowledge throughout the organization system. One part of the setup integrates knowledge and the other distributes it throughout the organizational system. This is how Xerox International implies knowledge management practice for gaining competitive advantage and progress of the organization. As trends are bringing innovation in knowledge management practices, the future is going to be more technological (Brown and Duguid, The Social Life of Information 2000). Organizations adapting the change like those which are relying on advanced social networking tools will have to understand technology in a deeper way. Meanwhile, it is not wrong to say that social networking practice is going to be more prominent in the future (Antonio 2011). Businesses will be more vigorous to adapt social media practice, and tools that will bring them the competitive advantage in the market (Zyl 2009). The truth has been understood in the entrepreneurship system, where knowledge is the key player and technology is the resource to replicate knowledge at its best (Kouzmin and Sankaran 2005). List of References Ahmed, P., Lim, K. & Loh, A., 2012. Learning Through Knowledge Management. London: Routledge. Antonio, M., 2011. The Future Impact of Social Media. The Executive Journal by Peppers & Rogers Group, 3(4). Brown, J. & Duguid, P., 2000. The Social Life of Information. Canadian Journal of Communication, Volume 25, pp. 573-575. Brown, J. & Duguid, P., 2002. The Social Life of Information. Boston: Harvard Business Press. Forrester Consulting, 2010. Social Networking In The Enterprise: Benefits And Inhibitors, s.l.: Forrester. Intel IT, 2011. Overcoming Security Challenges to Virtualize Internet-Facing Applications, Santa Clara: Intel. Intel, 2012. Intel Social Media Guidelines. [Online] Available at: http://www.intel.com/content/www/us/en/legal/intel-social-media-guidelines.html [Accessed 25 December 2012]. Jennex, M., 2007. Knowledge Management in Modern Organizations. London: Idea Group Inc (IGI). Kim, H., 2012. Online Social Media Networking and Assessing Its Security Risks. International Journal of Security and Its Applications, Volume 6, pp. 11-17. Kouzmin, A. & Sankaran, S., 2005. Diffusion Of Knowledge Management Systems: Mission Definitely Possible. s.l.:Emerald Group Publishing. Postman, J., 2009. SocialCorp: Social Media Goes Corporate. Berkeley: Peachpit Press. Raphael, T., 2011. Intel Making Moves on Social Media, College Recruiting, Mobile Applications. [Online] Available at: http://www.ere.net/2011/11/29/intel-moving-social-media-college-recruiting-mobile-applications/ [Accessed 24 December 2012]. Thierauf, R., 1999. Knowledge Management Systems for Business. Westport: Greenwood Publishing Group. Xerox Corporation, 2012. Social Media Guidelines, Norwalk: Xerox. Zyl, A., 2009. The impact of Social Networking 2.0 on organisations, s.l.: Emerald Group Publishing Limited. Read More