Managing Communications, Knowledge and Information - Essay Example

? Managing Communications, Knowledge and Information (MCKI) Task Information and knowledge needs Introduction The past few decades have witnessedan increasing need for innovation in product designs, marketing approach, and customer relationship management techniques. The efficiency of business operations and work processes are guided by the expertise of human resources and the extent to which they apply technology applications for promoting knowledge based work practices. The complexity of the business environment in which firms operate today demands improved understanding of market trends and shifts in consumer behaviour for developing effective strategies. This entails exploring market data and information that enables managers to understand emerging trends and factors impacting customer behaviour. Knowledge and information hence play a critical role in shaping organizational efficiencies and capabilities for desired results. It assists managers in faster and efficient decision making process and problem solving mechanisms, besides enabling them to identify market opportunities and potential risks presented by the current operating environment. The significance of knowledge based strategies in businesses is reflected in the growing dynamism of the markets in which they operate. The global market environment and rapidly advancing technology exposes the businesses to increased challenges in the form of inadequate skills and competencies to tap new and emerging technologies, limited resources to pursue business objectives in wider scale, and lack of leadership or managerial capabilities to exploit market opportunities. The focal point of strategic approaches within organizations is on developing its employee skills and competencies to meet the demands of the emerging market environment. Knowledge management and knowledge sharing processes play a vital role in promoting organizational competencies and managerial capabilities in the desired direction. Knowledge management and information flows within organizations form a critical link to its productivity and performance. However, effective knowledge management practices remain a distinctive challenge for organizations in the form of identifying the key information needs within the organization and developing effective systems for channelising the information flow across departments and business units. How does an organization define the need for knowledge and skills among its employees and what are the measures that it takes to equip the workforce with the desired skills. How can strategic planning in identifying information needs within each department or operational processes in the business and how can this help in meeting the organizational goals and objectives. These are some of the pertinent questions facing organizations and this paper focuses on providing an insight into strategies that can be adopted by an organization to meet its information needs and overall business objectives. The paper analyses the information needs and knowledge management strategies taken by Apple to meet one of its business objectives – Apple Inc will target to increase its market shares in India by 15 percent by the end of the current financial year. On 22 August 2008, Apple launched the I-phone in India. The response they received from consumers was not as expected as hardly any consumers showed up. This was a bit disappointing as compared to the launches in other countries where there were thousands of consumers standing outside the stores to get their I-phones. It was identified that the lack of marketing led to not having enough consumers at the launch date. (Iphone in India, 2011) The graph below shows the Mac market share of Apple: Market share of Apple by geographic divisions (Source: OSXDaily, 2011) By looking at the above graph, we can see that the market share in Asia is 1.61%, out of which about half is China and the rest is India. Considering the population size, it may not seem as low but as compared to other continents, it is considerably low. With the growing middle and upper middle class, the market share of Apple is forecasted to increase dramatically. In 2010, Apple announced to have sold 100 M iOS devices in India. With consumers being highly price sensitive, Apple is really struggling to achieve the market share that they are aiming due to the presence of its competitors who are launching products that are relatively cheaper. Nokia, google, Microsoft and blackberry are existing in the market and aim to gain a better share in the market, leaving apple in the dust (Will apple win in India?, 2010). With Apple being the market leader in most of the continents and being extremely competitive, it aims to somehow increase market share and leave its competitors behind. Apples future is focusing on satisfying personal consumers demands rather than just fulfilling a demographic requirement. It also aims to improve the performance of its new products. It is the fact that they ‘Think Different’ which makes them market leaders. Background of the company Apple is a globally recognized brand that has created its own market niche in the electronics industry sector. Apple Inc traces its origin back to the year 1976 when Steven Wozniak and Steven Jobs designed the first Apple computer in Cupertino, California. Since then the company has invested its resources in designing and developing new products and devices that have revolutionized the electronics industry. It has emerged as the leading player in the manufacture of personal computers, portable digital music players, and mobile communication devices. It also engages its services in providing third party software and application based solutions for its clients worldwide. Recently the company has launched innovative products that provide its customers with new breakthroughs in mobile technologies and high quality devices such as the iphone and the i-pod. The Apple i-pod is an innovative device that has created waves of popularity among the customer segments owing to its high quality and world class technology that offers a host of features and benefits to the users. Since its launch in the year 2001, the device has gained immense popularity with the masses. It has been hailed as the style icon of today – a must have with the techno savvy generation. Apple is a globally recognized brand name and this has no doubt contributed to the demand for Apple products in countries across the globe. The brand name has registered in the consumer minds for its quality and reliability in terms of product durability and customer service needs. This forms one of the major factors driving the market success of Apple i-pod. Knowledge and information needs Businesses and organizations as we have discussed in the previous section depend on the adoption of effective knowledge management and knowledge sharing programs that promote innovation in work practices and creativity in work culture. The success of marketing strategies depends on the existing knowledge of customers, their preferences and behaviours that influence purchase decisions. Knowledge of customer needs and expectations help firms in adapting their products to the desired standards or quality levels. Knowledge-based enterprises focus on redefining their business strategies to develop its core competencies and creative work environment that is much needed for capturing customer interests and market shares. However, this presents distinctive challenges to organizations since managers find it difficult to identify the key information needs for the business sector. The concept of knowledge management programs are based on the availability of raw data that can be processed for knowledge creation and acquisition. “In the knowledge economy, the most valuable aspect of data is its property of being a raw material for information processing and knowledge acquisition/creation” (Wickramasinghe & Dag, 2007). The scope of knowledge management is not limited to capturing and analyzing data alone; it also takes into account the communication or transfer of information to the relevant business units who are responsible for acting on it (Wickramasinghe & Dag, 2007). Based on the understanding of these fundamental knowledge management concepts, let us identify the information needs for promoting sales of Apple i-pod in the Indian subcontinent. Marketing goods in the international markets entails a deeper understanding of its cultures, existing market environment, economic factors and trends. Economic factors require taking a look at the following: Political situation: Government taxes, importing laws and the political stability of India. Economical situation: the recession that has hit the worldwide growth may be affecting the sales in India. Even though the potential of the market is decreasing but it is still higher in the Telecom industry. Socio-cultural: socio-cultural factors would require focusing on the population growth that would lead to the expansion of the industry as a whole. The level of education (literacy and illiteracy levels), people depending more on the telecom industry as a means to stay in touch, consumers perception of the technological industry and acceptance of imported products are other factors that must be kept in mind. Due to the rapid increase in the technological world, it is important that Apple produces innovative products and show the consumers what exactly it is that makes them different. Future technological advancements plan to take over the linkages between universities, hospitals and other institutes as well as cities. Even though there is a large number of producer’s in the world, only a few of them are known as the ‘Big Companies’ at the world level market. As apple is a part of the few, it should aim to overcome its competitors in order to increase its market share. The environmental situation is something that Apple does not need to worry about as it is committed to ensuring high standards of social responsibility. Apple makes sure that suppliers provide safe working conditions and use environmentally responsible manufacturing processes in order to reduce the impact on the environment. Apple aims to eliminate environmentally harmful substances from their products at some stage (Apple and the environment). Market research and consumer behaviour studies are important parameters that define the trends and expectations of consumers in the industry. It helps organizations in achieving their goals through promoting an understanding of the target markets. Thus the primary sources of data and information needs for promoting sales in India are customer needs and preferences, external market forces that impact market demand and supply logistics influencing market accessibility. This entails collection of both qualitative and quantitative data combined with tacit and explicit forms of data for effective analysis and interpretation of existing market trends. Appropriate methods for data and information gathering For an organisation as large as Apple, the market research process would involve quantitative and qualitative methods. Primary research tools such as surveys and questionnaires as well as secondary research tools like existing market reports, consumer behaviour studies and publications. The research process involves the screening of the target markets through industry statistics, consumer tastes and preferences, and assessment of market forces through the analysis of the vital data collected. Organizations undertake a combination of formal and informal approaches to collect the relevant data from customer focus groups and organizational stakeholders. Informal approaches for Apple could include asking customers about their perception of products while they are in stores. It is also known as unofficial information. This unofficial information gathering can also be done by asking various employees of the organisation by meeting them outside. A wide variety of primary and secondary tools and applications are used for this purpose that include the use of internet and collaboration tools like telephones, fax or email for filling in survey forms, response sheets and questionnaires. Social networking websites offer a good potential source for public feedback and opinion related to different products and services. The increased use of social websites like Facebook has given the opportunity to organisations such as Apple to have unofficial/informal contact with their consumers which can later help the organisation in identifying its weaknesses. Moreover, the use of Internet is cost effective and hence more popular among organizations. The wider reach to different customer groups and segments through this medium also enables the firms to gain a better perspective on emerging trends and expectations. However, each of the secondary sources of information has its drawbacks which must be identified by apple in order to focus on what it is that is missing. The use of internet and networking websites provides a large amount of information to the organisations. This information may sometimes be misleading as some customers may not be happy with the products and may not even bother to fill out online questionnaires or post on blogs. The positive feedback available on the blogs and websites may mislead Apple as the research and development department may end up thinking that customers are happy. This may leave the unhappy customers ignored, thus having a negative impact on the reputation of the company. It is harmful when users of other products from other companies try to mislead consumers who are willing to buy Apple products. The ethical consideration in such initiatives is significant since individual’s value confidentiality and privacy in the information they give out to others. This is one of the reasons why people tend to stay away from online blogs or refrain from signing up as they feel their information may be used for other purposes. Apple will need to assure the respondents that any personal information collected in the process will be used purely for the company research objectives and the data or information collected will not be misused or sold to third parties. Online questionnaires, feedback forms, and secondary sources of information online will provide Apple with effective tools for reaching out to huge customer base in India. Moreover, this will prove to be a cost effective strategy that can provide the company with an improved understanding of consumer needs and expectations. Task – 2 Personal networking and communication processes Communication plan Organizations to make the most of intellectual capital should have a clear communicated knowledge management strategy. The integrated approach of human resource department, IT department and the IT professionals is essential in making the knowledge management strategy a success at all levels within the organization. According to Christina Evans (2003) these departments should understand the value of information they have. The key to effective knowledge sharing process lies in the ability of firms to communicate the objectives and significance of the data and information provided and relate it to the defined business goals. Clarity in communication is important in understanding the goals and strategies needed to achieve the specified goals. Apple needs to focus its strategies on adopting a structured approach to the whole exercise. The company will form a team of managers responsible for achieving the goals and identifying the market opportunities for Apple products in India. The team will communicate the goals to the company stakeholders through a formal market study report that presents the facts and vital statistics of the targeted markets, identify the market opportunities, highlight the challenges, and comparative assessment of key competitors in the market. Based on the observations of the report the report will provide strategic recommendations and measures that will be taken to promote market shares of Apple in India. Formal communication strategy will also include face to face meetings with the key distributors of i-phone, i-pod, and Apple computers in India to identify the issues faced by them while selling the products. This will help in highlighting the practical problems associated with retail marketing channels and define the measures that can be taken to resolve these issues. Business models centered on employee skills development and information sharing practices are well adapted to survive in challenging market conditions. The sharing of information takes place through a “variety of media such as departmental meetings, conferences, interdepartmental meetings, in-house magazines, company newsletters, and videos” (Holbeche, 2005). Apple will conduct formal training workshops for the marketing team to familiarize them with the target market environment, culture and trends that distinguish the consumers in India from others. Informal group discussions and team meetings will also contribute to the effectiveness of the process through identification of potential issues, alternative strategies that can help in reaching the defined targets. Managers use various methods to develop and spread ideas and information within the organization. These involve formal workshops, informal meetings, one to one discussions and participative decision making process. The key advantage of using an informal and team discussion for such objective is brainstorming that enables the group to identify vital issues and aspects related to the organizational goals. Communication strategies at Apple Consumers are driven by the brand Apple while making a purchase decision. The dominance of Apple in the portable digital music player market has been attributed to the aggressive marketing strategy adopted by the company. The Apple I-pod advertisement and publicity campaigns for the product have clearly made it one of the most visible products. But more than these campaigns the word of mouth recommendations continues to influence sales. There have been significant changes in the communications and collaboration technologies that have led to strategic re-orientation of marketing strategies and promotional methods adopted by organizations. The Internet and social networking websites are found to be effective tools in promoting brands and market shares across geographic borders. Matured consumers will go for purchase only after extensive research on the product. They get involved in the products, brands, and options available in the market before the actual purchase. Majority of these consumers look for information on the Internet. The abundance of information available on the net and its convenience has made the Internet a valuable source of information. Everything a consumer wants to know about a product is available on the net – the price range, product range, features, user opinions, market trend, and analysis. Hence it is a media to be reckoned with. More advertising and publicity campaigns on this medium will register in consumer minds. Apple has successfully managed to make use of these technology innovations to increase business efficiency and add value in terms of cost and benefits. This involves the use of Internets and social networking websites for communicating the brand values and product attributes to the target audience. The positive impacts of the use of these technologies in business ventures will be felt in enhanced productivity, increased consumer reach, higher market shares, and efficient customer service. Communicating with stakeholders Corporate communications within Apple focuses on transferring vital and relevant information to its employees and stakeholders. The communication processes within various departments are streamlined to avoid irrelevant bits of information passing from one business process to another. The conservative outlook to communication is supported by Apple’s belief that successful ventures require “tight control over information” flows (New York Times, 2009). Employees are kept under strict surveillance to monitor their moves and collaborations with their managers and peers. Its internal communication strategy adopts a similar approach towards its communication policy with external stakeholders that include customers, suppliers, and shareholders. While adequate controls are exercised to maintain privacy of vital information, promotional communication is more simplistic in nature. Product designs, pricing strategy or product features are not hyped over social networking websites as compared to its competitor strategies that make effective use of the emerging marketing tools (New York Times, 2009). “Apple’s decision to severely limit communication with news media, shareholders, and public is at odds with the approach taken by many other companies, which are embracing online outlets like blogs and Twitter and generally trying to be more open with shareholders and more responsive to customers” (New York Times, 2009). Organizations adopt a more open and transparent communication strategy to exploit market opportunities and influence customer behavior for expanded sales and market growth. The growing popularity of the use of social networking websites to promote its products and services has provided an effective medium for mass communication to organizations. However, the conservative approach of Apple limits the scope of promoting its products to the potential customer segments and this can have a negative impact on its market growth potential. Innovative product designs coupled with transparency in its communication with stakeholders can help the company in highlighting its product attributes and strengthen its appeal to customers. Individual assessment of communication ability Task 3 – Appropriate system Knowledge sharing systems at Apple The technology driven approach is reflected by market analyst Peter Mortensen (2007) in his blog Apple is not a network innovation company. “Apple is a purely design driven company. By that I mean that they rarely produce an idea that is truly new, but when they launch a product or service, it tends to be much better than existing products in the category that it comes off as legitimately innovative and create new markets” (Wired.com, 2007). Organizations adopt various strategies for implementing knowledge management processes. According to Van der Spek and Spijkervet (1997) the process of KM involves developing new knowledge, securing new and existing knowledge, distributing knowledge and combining available knowledge. The role of information technology in the field of Knowledge management has been very significant especially in the past few decades. Managers have been looking for suitable technologies and medium to share knowledge effectively within the organization. “While it is certainly true that knowledge management is not a technology issue, effort must still be spent in providing a suitable environment to facilitate knowledge capture and sharing” (Robertson, 2004). Apple applies innovative technology tools and applications to promote its knowledge sharing goals and objectives. This is evident in its product design and development department that has made constant efforts to remain the brand leader in the ever growing competitive market for technology products and services through innovative practices in product design. Apple has adopted a market oriented strategy towards product development, design and promotion retaining the market competitive advantage through constant innovation and creativity. This involves a deeper understanding of consumer behavior and trends that define product demand. Innovation in product design and features are closely looked into by the customer. Electronics industry is largely driven by the willingness of a sizeable segment of consumers to spend more on the latest gadgets and changing consumer attitudes – the search for something new and unique will always guide the companies to adopt new strategies. The company adopts a streamlined and integrated approach to collect vital customer information, market trends and evaluating competitor products to launch an innovative product that intrigues the customer interests. “They take ideas that people have invested – adequate functionality, a modest market of hobbyists – and turn them into innovations by fitting them into what people need” (Mortensen, 2007). The company makes effective use of websites, Internet and market study reports to analyse industry trends, competitor strategies and customer needs to compile a product design and development report. Such reports are circulated among the design and development team to provide them with the understanding of the product requirements, desired features and technology capabilities that can be used to produce new applications and devices. “Apple illustrates the importance of designing new products around the needs of the user, not the demands of the technology” (The Economist, 2007). The knowledge management strategies at Apple focus on leveraging its core competency that is innovative works culture to promote new product design and adaptations to meet the emerging needs of the customer. The company has been successful in increasing its market shares and revenues through constant innovation and new product development strategies. The successful launch of Apple i-pod has revolutionized the company’s success in terms of innovative applications and technology design. “The ipod family of products resurrected Apple’s fortunes by transforming the company from a niche player in personal computers to a market maker in consumer electronics” (Getz and Costa, 2008). Recommendations for effective information and communication strategy Apple is recommended to adopt a more transparent communication strategy in its dealings with external stakeholders and internal employees. Communications within the departments need to be more open to facilitate free flow of information and knowledge resources for promoting its innovative capabilities. A key factor influencing the sales and market shares of company is its customer service efficiency. Apple customers have constantly complained of lack of prompt customer service at its outlets and delayed responses to customer queries that have contributed to negative scores in customer satisfaction surveys (Businessweek, 2007). The company can achieve its goals of increasing market shares in India by 15 percent only through an improvement in its customer service strategies and promoting the image of efficient and well-managed customer outlets. Another dimension to retaining customer interest and promoting sales is offering new products and innovative adaptations to existing products that offer the extra advantage to customers. Customers in the electronics industry are guided by new technologies and upcoming devices that provide them with new features and functionalities. Extended utilities and added features meet their needs for diverse requirements and recognition of these needs drive market demand. Thus, Apple can promote its market shares through innovative applications designed to meet user needs and emerging requirements. Conclusion Technology plays a vital role in the strategic decision making process of the company. Apple has focused on achieving increased market shares and retaining its position as the market leader through improved product offerings. The company owes its success to innovative practices that are based on a strong organizational structure and culture fostering creativity within its employees. Knowledge and its management have considerable impact on the organizational performance and strategies. Penrose (1959) considered knowledge as a key organizational resource while Winter (1987) described knowledge as the only real sustainable competitive advantage. Identifying information needs and knowledge sharing capabilities form the key aspects of organizational strategy in gaining competitive advantage and promoting business goals. References 1. 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