Knowledge Management in Organizations - Essay Example

? Strategic importance of knowledge and the different approaches organisations take to ensure knowledge adds value within the organisation. Table of Contents Critical Review 3 Knowledge and Information 3 Knowledge as key source of wealth 4 Knowledge Management in organizations 5 Examples 7 Walmart 7 Tesco 8 Morrison 9 Conclusion 9 References 11 Critical Review It is true that information and knowledge are two distinct concepts. Knowledge can be defined as the concepts and understanding about some aspects and materials that we know. On the other hand, information helps individuals to expand knowledge beyond the assortment of understanding and senses. Despite the narrow difference, knowledge and information are interrelated to each other. Knowledge and Information Knowledge generally refers to the practical use of information. On the other hand, information refers to the general data expresses by words, images, sounds and number. Information can be shared, stored or transported. On the other hand, knowledge does not have these characteristics. Global retail industry has been considered for the study in order to determine the importance of knowledge in the business process of several organizations within the industry. Only gathering information about advanced process or a new process cannot help an individual or an organization to get success through it. The organizations need to significant level of expertise and knowledge how to implement these applications or tools (Schnedlitz, Morschett and Rudolph, 2010, p.109). It is true that knowledge as opposed to information has become the competitive driver over recent years. Global retail industry has become highly competitive due to the presence of several leading organizations. Organizations like Tesco, Walmart, Morrison’s, Sainsbury and others are trying to implement significant strategies in the business process to ensure positive business growth. Knowledge management is considered as a key competitive business growth driver. It is important for each and every organization within the retail chain industry to have effective knowledge to adopt and implement competitive strategies (Holsapple, 2003, p.132). Knowledge is quite dynamic, intangible and difficult to measure. Without effective knowledge no one can survive and sustain within the global retail industry only. It is true that information about some business tools and strategies help the organizations to think about further strategy development process. But, knowledge about these tools and achieved information can help the organization to make effective decisions that will ensure organizational goal. Knowledge as key source of wealth Earlier, capital, land and labour were considered as the source of wealth and business profit. Now-a-days, knowledge is considered as source of wealth for several business organizations. The major challenge of the knowledge based economy is to ensure and foster innovation. Several leading organizations within the retail industry are trying to capitalize on the potential opportunities that have been created due to globalization and technological revolution (Varley, 2013, p.19). It is true that organizations can adopt and implement advanced technological process in business operation but, cannot get success without effective knowledge about the implementation process. Several leading and popular retail chains around the globe are trying to implement advanced technology in each and every business function, such as manufacturing, logistics and supply chain, finance and human resource management. Competitive success is based on how strategically the organizations intellectually manage the capital. Effective knowledge management is considered as an important strategic instrument. The organizations within the retail industry are implementing differentiated technical instruments to enhance business process. It is true that implementation of advanced technology in logistics and supply chain management helps the leading retail chains to reduce business operation time and cost (Chevalier and Gutsatz, 2012, p.82). It is important for the organizations to have specific knowledge about the tools or processes that are used in the business operation. Knowledge Management in organizations Knowledge management helps an organization to undertake effective decisions that can ensure effective business performance and significant business growth. Human resource management is one of the key organizational departments. Effective human resource management process helps the organizations within the retail chain industry to develop a strong workforce that can help an organization to perform effectively in the global market place. Organizations like Walmart and Tesco used to implement technologically advanced performance management tools that can help the management of the organizations to ensure significant workplace performance. Several software development organizations are trying to introduce advanced software applications and tools that can help the business units in customer relationship management process. Each and every organization within the retail industry is trying to develop a technical team, within organization to educate the managers and employees about the functions and significance of the tools. In addition to these, these organizations are trying to hire management teams and employees who have specific knowledge about the application of tools and applications (Montano, 2006, p.48). However, knowledge about advanced CRM tool can help the employees of the organizations to maintain and track huge customer database. In addition to this, it helps the organizations to develop effective relationship with the existing and new customers. Knowledge about function of applications means the continuous practical implementation process of these applications. Effective knowledge management process improves business performance as significant knowledge and expertise of the employees and management of the organization about several business operation applications can foster the performance level of each and every department within an organization. Leading retail chains around the globe organize significant training and development programs for the workforce before implementing any kind of strategy and business tool. It is true that, organizations use advanced applications to increase competitive edge and business performances (Jain, 2008, p.77). Knowledge about each and every business operation process can help the organizations to minimize the possibilities or chances of errors. Effective knowledge management enhance personal result as well as the professional result. Now-a-days, the demand for online shopping and consumption process has significantly increased among the target customers. Each and every organization is trying to provide the facility of online consumption to the customers in order to meet market demand and customer satisfaction. The efficiency and knowledge of the employees help the organization to access the applications quite effectively. Significant knowledge about these advanced applications helps the organizations to reduce business operation cost and time. The above figure shows that online business process of retail organizations in UK is helping the industry to grow. This growth would not have been achieved if the organizations did not have effective knowledge management process. Online consumption and delivery process can help an organization to develop potential customer as the expertise and effective performance of the employees ensure effective customer awareness. An organization can get significant competitive advantages through effective knowledge management process. On the other hand, it is highly important to have the knowledge to access technologically advanced t6ools in the supply chain management process as it can ensure business sustainability. Examples This part of the assignment will provide examples on how three different organizations within the global retail industry achieved significant advantages through the use of knowledge and information. Walmart Walmart is the leading organizations within the retail industry. Walmart is hiring technological professionals in organization as the organization is trying to install big data solution in the business operation process (Sharma, 2008, p.29). This data analytical tool helps an organization to gather key and important data that are required for the business operation. It is a sort of data management tool. According to the workplace culture, the organization provides effective training for the employees in order to increase the skill and competency level of the employees. Walmart focuses on significant knowledge and skills. The organization can track data and information about customers within a quick period of time. Effective knowledge about the software and skills on this application helps the employees to meet personal and professional goals and objectives. Tesco Tesco is another example that used to focus on effective knowledge management process. Tesco Plc continuously tries to give training to employees before implementation of any strategy or tool. However, it is highly important for the organization to meet huge demand of the customers as the organization developed huge brand awareness through these applications. Implementation of PDA service and advanced navigation system in the logistics and supply chain management process helped tesco to reduce supply chain and logistics time and cost (Ayers and Odegaard, 2007, p.65). This advanced PDA service helped to ensure effective customer service management as the employees do not have to give much effort in distributing products to the in-store customers. It helped to increase the sales revenue. The organization used to hire the employees who have knowledge about these applications and software. Advanced navigation helps the logistics employees to get exact address and direction to reach to the address. It is highly important for an organization like Tesco to maintain the competitive position and significant business performance (Haerifar, 2012, p.22). In addition to this, the management of Tesco Plc adopted advanced performance management strategy to motivate the employees for better workplace performance. Continuous innovation, ability to capitalize on the opportunities and significant change process enhanced the knowledge management process of the organization. It is clear from the above discussion that the use of knowledge in business process helped Tesco Plc. to achieve significant competitive advantages. Morrison Morrison is the last example that used knowledge to achieve significant competitive edge and sustainability. Each and every organization within the global retail chain industry tried to incorporate potential business operation strategies in the decision making process to enhance business performance. There are several organizations that used to offer online consumption and delivery facility for the target customers. But, these organizations failed due to the lack of effective knowledge about the application of the software. It actually increased the business operation cost. In return, these organizations did not taste any kind of success. However, Morrison understood the needs and demand of the market and target customers. They hired technological professionals to develop company webpage. In addition to this, effective online and social media marketing activity helped the organization to create effective brand awareness among the target customers (Cunningham and Harney, 2012, p.677). Conclusion It is clear from the above discussions that the each of three organizations focused on effective knowledge management process in order to maintain significant business performance. Information about some technological tools or machinery can help an organization in strategy development process. But lack of appropriate knowledge about each and every operational tool and information, the organizations cannot maintain effective and sustainable business practices. Use of knowledge in business process helps the organizations to maintain sustainability in business process. Therefore, it is important for the organizations to focus on effective knowledge management process rather than only depending upon source of information. References Ayers, J., and Odegaard, M., 2007. Retail Supply Chain management. London: Routledge. Chevalier, M., and Gutsatz, M., 2012. Luxury Retail Management. New Jersey: John Wiley & Sons. Cunningham, J., and harney, B., 2012. Strategy and Strategists. London: Oxford University Press. Haerifar, P., 2012. Knowledge Management within Tesco. London: Sage. Holsapple, C., 2003. Handbook on knowledge management 2. London: Routledge. Jain, N., 2008. Retail Management. New Jersey: Pearson. Montano, B., 2006. Innovations of Knowledge Management. New Delhi: IGI. Schnedlitz, P., Morschett, D., and Rudolph, T., 2010. European Retail Research. London: Kogan Page. Sharma, P., 2008. Knowledge Management. London: Sage. Varley, R., 2013. Retail Product management. New York: McGraw-Hill. Read More