Knowledge Management in Wal-Mart - Research Paper Example

Knowledge Management Contents Contents 2 3 Introduction 3 Literature Review 4 Research Methodology 11 Data Analysis 13 Interpreting the Research Material 15 Conclusion 15 References 17 Appendix 19 Appendix 1: Questionnaire 19 Abstract The research report is designed by carrying out suitable research process for understanding the role of knowledge management in the e-business driven strategies affecting the business processes in Wal-Mart which is a leading retail company having an online business. The research report is introduced with relevant background information related to the concept of knowledge, knowledge management, e-business strategies and information about the chosen organization in these areas followed by a discussion of the academic works in the chosen field. The research methodologies including the type of research work, data collection processes and data analysis and interpretation of the research materials are explained and discussed in the report. The findings related to the role of knowledge management in the chosen organization are stated and explained. The report is suitably concluded with the interpretation of the findings and by providing light on the beneficial aspects and challenges involved in the implementation of knowledge management system in Wal-Mart. Introduction The management of business organizations across the globe have seen a paradigm shift due to the influential use of the internet as a global tool. The advent of electronic commerce has forced all the companies to open up their electronic business segments in order to maintain sustainability and competitiveness in the evolving business world. Managing and e-business segment and integrating it with the existing process is not an easy task. This encourages new methods and processes in the organization and in many cases the existing processes become redundant due to the changing facets of the organization. The advent of e commerce has brought about many changes that the organizations have to implement in their businesses and adapt the operating processes of the organization according to the necessary changes. The successful implementation of new strategies and management of the new business processes require the senior management to gather and more information as knowledge within the organizations. Knowledge management is the key to success for managing the changes brought about by electronic business in the operating and business processes of different organisations. Wal-Mart is one of the giant retail corporations operating in more than 15 countries across the world. Wal-Mart has been focusing on it e business to maintain sustainability in the changing conditions of the global retail segment. The company focuses on maintaining extensive knowledge related to the e-business tools and techniques, their benefits and functionalities, the costs and benefits associated with knowledge management in the e-business process, the potentials of the e-business segment so as to efficiently manage the changes in the operating processes driven by the online business of Wal-Mart. The scope of knowledge management in the organization encompasses a number of domains including product management, product innovation, Customer Relationship Management (CRM), Supply Chain Management (SCM) and many other relevant business processes. Thus the problem development of the research has been based on the critical importance of knowledge management in managing the changes caused by the electronic business in the operating processes of Wal-Mart. Literature Review The current organizational world is characterised by the recognition of the critical role of knowledge and intellectual property management in an organization. Various practitioners and authors have identified the strong possibility of knowledge and intellectual capital being the key source of competitive advantage in the future. According to the work of Arthur (2002), the importance of intellectual capital as a driver of competitive advantage is likely to gain more weightage over that of other factors like commodities, technology, finance, production and natural resources (Arthur, 2002, p.180). Indicate that this is because, the other sources are accessible by every organization in similar levels but intellectual capital is a comparatively new form of resource which can be created and nurtured depending on the capabilities of the specific organizations. Most organizations have taken steps to incorporate knowledge management systems with an aim to develop and implement knowledge management in their business processes and decisions. Though knowledge management is a relatively mew concept, the subject is gaining momentum due to the probability of higher returns and vales generated by the system. Dalkir and Kimiz (2005) have explained knowledge management as a continuous process involving the management of various types of knowledge in order to identify and use existing knowledge assets and sources, to meet existing and future needs of the business and to create and grasp new opportunities (Dalkir and Kimiz, 2005, p.144). Knowledge management involves a systematic process of observing, identifying, underpinning and optimizing the knowledge economies available within an organization. According to the work of Choo (2002), the main purpose of knowledge management is to maximize the returns from the available knowledge resource in an organization and improve the overall performance of the organization based on the knowledge assets (Choo, 2002, pp.212-214). Knowledge management aims at creating, developing, nurturing, organizing and renewing knowledge on a continuous basis. The Knowledge Management Framework: (Source: Choo, 2002, p.214) A wide number of academic and literary works have been devised by the researchers and scholar of various times related to the topic of knowledge manage and its importance in managing different changes in the organization. The changes driven by the electronic business and the role of knowledge management in implementing and supporting these changes in the business process have emerged as recent topics of interest among the researchers. The advent of the World Wide Web and electronic commerce have brought the concepts of knowledge management and information systems with them and the success storied of many organizations have highlighted the key role of knowledge management with respect to managing changes caused by e-commerce in an organization. According to the study prepared by Halal (2001), knowledge is an important resource which has to be proficiently organized and managed to draw out its value and usability in an organization (Halal, 2001, p.442). Knowledge should be managed and organized by mapping it against the objectives of the organization and by evaluating how the available knowledge can be managed and nurtured to make it beneficial and valuable for the organization. As proposed by Albert and Bradley (2007) in their literary work, knowledge management involves four basic dimensions which are completeness, congruency, perspective and connectedness (Albert and Bradley, 2007, p.347). A knowledge management process starts from the creation of knowledge within the organization. Knowledge can be created by the proper recognition of the existing gaps in the knowledge management practices of an organization. Knowledge gaps can be significant hindrances in the process of decision making, problem solving and thus can constrain innovation and growth in the business. Quinn, Andersen and Finkelstein (2004) have identified that the decision making processes are largely dependent on knowledge management because these processes involve the compilation of available information, identification and evaluation of the different knowledge and information available within the organization from an earlier date to the current day (Quinn, Andersen and Finkelstein, 2004, p.36). According to the work of Alavi and Leidner (2001), the concept of knowledge can be broadly segmented into two categories including tacit knowledge and explicit knowledge (Alavi and Leidner, 2001, pp.168-170). Tacit knowledge is the knowledge which is difficult to be disseminated or articulated. It is complex and cannot be codified and is generally observed in the behaviour or actions of an individual. Explicit knowledge is easier to codify through the use of procedures, rules and policies and can be disseminated easily. The knowledge of the process of placing a bid on an online auction site is a type of explicit knowledge whereas the rationality of how and when to increase the bid is more dependent on the tacit knowledge of an individual. Essentials of Knowledge Management: Source: (Alavi and Leidner, 2001, p.169). According to the study presented by Chase (2000), the major challenges and restrictions involved in managing knowledge in an organization and developing organic information and communication systems are the free sharing of information in all levels of the organization and the spontaneous and voluntary creation of knowledge within the business (Chase, 2000, pp.38-49). The e-businesses are identified as the most critical and instructive examples of knowledge management and knowledge nurturing. The internet helps the organisations across the world to create high values within the organization by pooling a variety of information and knowledge from all across the globe. According to the study proposed by Wolpert (2001), knowledge management would essentially involve developing knowledge within the organization, ensuring value creation through knowledge management, implementing knowledge in the right places, treating knowledge as a critical resource and nurturing knowledge development and implementation continuously (Wolpert, 2001, pp.590-613). According to a research report presented by KPMG (2000), more than 85% of the biggest organizations across the globe have implemented the knowledge management systems and have experienced positive results from the step (KPMG. 2000, pp.10-12). The success of knowledge management in controlling and guiding any process of change in an organization has been suitably established. As indicated by Zetie (2003) in his work, the knowledge management system is especially helpful in supporting an organization in the decision making processes and in the change implementation processes (Zetie, 2003, pp.159-160). According to the study by Anantatmula (2007), there are there main repositories of knowledge that play a crucial role in knowledge management (Anantatmula, 2007, pp.121-124). These include the external knowledge, structured internal knowledge and informal or unstructured internal knowledge. The external knowledge or competitive intelligence is the easiest to access and manage. The internal knowledge which is structured in the form of marketing materials, methods and research reports are prepared and managed thereafter. The informal or unstructured internal knowledge is the most important knowledge repository and is also the most difficult area in knowledge management. This is because the unstructured internal knowledge is mainly composed of tacit knowledge which is complex to codify according to rules and procedures. OLeary (2002) has indicated in his study that a number of advanced information technology systems are required to assimilate this kind of knowledge and transfer it from the individuals in an organization to create a knowledge depository (OLeary, 2002, p.54). According to Manville (1999), an efficient knowledge management system can be established only on the backdrop of a proper knowledge environment in the organization (Manville, 1999, pp.114-115). The success of a knowledge management system is largely dependent on the organizational culture. An organizational culture driven by knowledge and sharing of information would enable the managers to establish the knowledge management process quickly and suitably. According to the work of Leonard (2001), in order to ensure the success of a knowledge management process, the organizational culture should necessarily poses the following constituents: the senior management in the organization should be supportive of the knowledge creation and development and should ensure commitment, the employees should be willing to explore and should be intellectually curious, the employees at all levels should display and uninhibited behaviour of sharing information and knowledge and the employees should have an orientation towards knowledge management and nurturing (Leonard, 2001, pp.66-70). According to the study of Davenport, De Long, D and Beers (1998), the best practices required for establishing a knowledge based work environment are knowledge sharing, establishing reward systems with the advancement in knowledge management practices, increasing professional challenges and encouraging stimulation of knowledge within the organization (Davenport, De Long and Beers, 1998, pp.43-57). Martinez (2001) identifies in his study that the old concept of knowledge equation which states that knowledge is equal to power and restrains knowledge sharing is being fast replaced by a new approach to knowledge being multiplied by sharing (Martinez, 2001, pp.26-31). This helps in creating a knowledge driven work environment and promotes knowledge nurturing within an organization. Knowledge management in electronic business has led to paradigm shifts across different aspects in different organizations. These include paradigm shifts in the use of technology, in business processes, role of the senior management and the employees, the knowledge processes prevailing in the organization, organizational design, and organizational asset economics and so on. In this background, a robust knowledge management system is expected to combine the technological resources with human creativity and innovation to address the agility of the changing global business conditions. The human resource management strategies play a main role in establishing knowledge management as a technique to support the change processes in the operations of a business driven by innovations and new strategies like e-business. Proper human resource strategies aim to improve the motivation and participation of the employees in knowledge sharing and displaying a positive attitude towards knowledge management. From a broad perspective, knowledge management supports, encourages and facilitates three interlinked aspects of an organization. These are the creation or discovery of new information or knowledge and the redefining of existing knowledge, the continuous development and nurturing of knowledge as a part of the day to day business processes and decision making processes of the organization and the sharing of information and knowledge among all individuals and across different departments of the organization. The work of Addicott, McGivern and Ferlie (2006) establish that the success of an organization is more driven by the intellectual capital management and capabilities rather than the physical resources available in the organization (Addicott, McGivern and Ferlie, 2006, pp.112-114). In a knowledge based environment, both the individuals and the organization use intellectual capital and knowledge as the most important sources of achieving competitive advantage. Research Methodology The research is carried out with the main objective of understanding and evaluating the various aspects of knowledge management in the e-business and the changes in the operational processes of Wal-Mart. The research is carried out with the use of suitable methodises including data collection, research processes and interpretation of the material collected for the research. The research is designed and compiled in a scientific way and suitable statistical, quantitative and qualitative research methods are used for conducting the study. A thorough research process is implemented to understand the role of knowledge management in managing the changes in the operational processes of Wal-Mart which have been driven by the electronic business that the business has ventured into lately. A descriptive research design is implemented to carry a step by step research process. Knowledge is an intangible concept. Therefore, qualitative research is used to study the behavioural qualities and aspects of the respondents related to knowledge management. Quantitative research is not used because of the constraint of knowledge a non-quantifiable concept. The study is descriptive and exploratory in nature. Thus the naturalistic observation of the researcher is widely used in the qualitative research process in which the observations of the researchers are used to interpret key factors in the knowledge management concept in Wal-Mart. The unobtrusive methods are used in the research by semi structured internees being carried out with the chosen amole of respondent. Both primary and secondary data collection methods have been used to collect relevant data for the research. The primary data collection techniques involve the use of a questionnaire on a sample of 15 respondents to evaluate the importance of knowledge management in Wal-Mart. The respondents include 6 managers of Wal-Mart and 9 employees of the business. 2 managers and 3 employees from each of the departments of production and supply chain, human resources and individual stores of Wal-Mart are considered for the sampling. The data has been collected on the basis of a gone on one interview with the respondents and include managers and employees from different business processes of Wal-Mart including operations departments, production department, human resource department, supply chain and the stores. The primary data collection is a time consuming process but is expected to be a more accurate source of information because the practical experiences of the members and employees are noted with the help of the questionnaire and the interviews. The secondary data collection involves the use of relevant literary works prepared by different scholars, researchers and academicians. A number of journals, books and articles related to knowledge management are considered for the research. The exploratory nature of the research has enabled the research report to be multifaceted and looks into the different aspects involved in knowledge management and the importance of knowledge management in the particular organization of Wal-Mart. Data Analysis The data analysis part of the study involves the analysis and presentation of the data that has been collected but the primary as well a secondary data collection techniques. The analysis is done through the use of suitable research methodologies. Each of the filled questionnaires and the one on one interviews are analysed and interpreted carefully to understand the responses of the group of 15 selected respondents from Wal-Mart employees. The analysis part aims to assess degree of implementation of knowledge management practices in different departments of Wal-Mart, especially the operations of the business. This is critical for understanding the role of knowledge management in facilitating the e-business driven changes in the production, supply chain management and other operational processes of the company. The questionnaire is designed with an aim to understand the different effects of e-business strategies in the various departments of Wal-Mart including production, product innovation, supply chain management and customer relationship management (Roos and Von Krogh, 2001, pp.423-425). The first question is designed to understand how clear the employees are regarding the implementation of knowledge management in their organization. The second and third questions are aimed at evaluating the level of e-business strategies used in the organization and their effectiveness in improving the business processes. The challenges faced by the employees and managers in the practical implementation of knowledge management in their daily work are considered in the fourth question. The fifth question deals with gauging the benefits of knowledge management in the organization from the perspective of the employees and the managers of respective departments. The responses of the sample are unified in the aspect that all the participants recognize knowledge management as an effective support system for implementing the e-business driven changes in the different processes of Wal-Mart. It is indicated from the responses of the sample that Wal-Mart pays critical attention to knowledge management in the customer relationship management segment of the business. The supply chain and operations department of Wal-Mart are known as the prominent drivers of the success of the retail business. Wal-Mart is focusing on completing a robust knowledge management system in the supply chain and logistics processes in order to increase the effectiveness and sustainability of these business practices in the background of the changing needs of the global supply chain systems. The organization has taken steps to respond effectively to the market demands and make the business sustainable for the future by ensuring that the digital and technological aspects are added in all phase of operations, distribution, marketing and logistics of the company. Wal-Mart has shown much competency in making a sustainable future with the use of efficient e-business strategies backed up by the emerging trend of knowledge management. The employees of Wal-Mart seem to be mush satisfied with the steps taken by the organization to motivate the employees to participate in knowledge sharing activities. The employees are rewarded sufficiently for using knowledge management in their daily job responsibilities. This motivates and encourages the human resource of the organization to use their intellectual capital for creating value within the organization. Interpreting the Research Material The research report is developed on the basis of proper data collection and analysis and interpretation of the collected data. The responses of the selected sample indicate that the knowledge management strategies implemented in Wal-Mart are critical in driving the different operations related to the production, supply chain and customer relationship management departments. The implementation of e-business strategies aligned with the knowledge management practices are done with the objective of attaining several organizational goals of Wal-Mart. These goals include continuous innovation and improvement in the organization, integration of the business operations, achieving competitive advantage, capitalizing on the core competencies of the business and improving the overall performance of the retail business. The e-business strategies are implemented as effective business operations involving innovation and change. The extensive knowledge related to the business operations plays a significant role in implementing successful e-business strategies within the organizational processes (Bontis, 2006, pp.102-104). Conclusion Knowledge management has emerged as a new concept that plays an important role in the facilitation of innovation strategies like e-business in an organization. It is seen that knowledge management plays a significant role in changing the operational processes of the business to suit the evolving needs of e-business for improving the sustainability and competitiveness of the organization. Wal-Mart has successfully embossed knowledge management practices in the individual employees as well as the various departments of the organization. The heavy investment of Wal-Mart towards the development of a robust knowledge management system has paid off by making the operations of the business stronger with respect to the shifts noted on the global retail business and the emerging online business trends. It is identified from the research that several processes within the supply chain, production and customer relationship departments in Wal-Mart are most influenced by knowledge management systems. The company is majorly dependant on knowledge management to implement innovation and other change related processes in the different operational aspects of the business. Though knowledge management works as the major booster for effective e-business methods in the organization, Wal-Mart faces several challenges associated with the implementation of knowledge management in relation to the e-business strategies. The integration of business processes and the creation of knowledge sharing and participation of all levels of the employees in knowledge management are the major challenges faced by the organization. The streamlining of the e-business strategies with the organizational goals and objectives is another major obstruction faced by Wal-Mart in implementing the e-business strategies and incorporating knowledge management within the business. Wal-Mart has also faced hindrances related to the development of a positive work environment in which the employees are positively oriented towards sharing of information and intellectual capital. But with time, the organization has successfully overcome the obstacles and established a sound knowledge sharing and knowledge nurturing environment in the business. References Addicott, R., McGivern, G. & Ferlie, E. 2006. Networks, Organizational     Learning and Knowledge Management. Stamford: Cengage. Alavi, M., Leidner, D. E. 2001.  Knowledge Management Systems: Conceptual Foundations and Research Issues. MIS Quarterly. Vol. 54(3), pp.168-170. Albert, S. & Bradley K. 2007. Managing Knowledge – Experts, agencies, and organisations. Cambridge: Cambridge University Press. Anantatmula, V. 2007. Knowledge Management’s Impact on Organizational Performance. Hershey: Idea Group Publishing. Arthur, W. 2002. Increasing Returns and the World of Business. Harvard Business Review. Vol. 36(1), p.180. Bontis, N. 2006. There’s a price on your head: Managing Intellectual Capital Strategically. Business Quarterly. Vol. 24(1), pp. 102-104. Chase, R. 2000. The knowledge-based organisation: An international survey. Journal of Knowledge Management. Vol. 14(1), pp. 38-49. Choo, C. W. 2002. Strategic Management of Intellectual Capital   and Organizational Knowledge. London: Oxford University Press. Dalkir, I. & Kimiz, M. 2005. Knowledge Management in Theory and Practice. Oxford: Elsevier Butterworth-Heinemann. Davenport, T., De Long, D. & Beers, M. 1998. Successful Knowledge Management Projects. Sloan Management Review. Vol. 20(1), pp. 43-57. Halal, W. 2001. The Infinite Resource. San Francisco: Jossey-Bass. KPMG. 2000. Knowledge Management Research Report. [Pdf]. Available at http://www.providersedge.com/docs/km_articles/kpmg_km_research_report_2000.pdf. [Accessed on 24 March 2014]. Leonard, D. 2001. An Organic Learning System at Chaparral Steel. Knowledge Management Review. Vol. 14(3), pp.66-70. Manville, B. 1999. A Complex, Adaptive Approach to KM. Knowledge Management Review. Vol. 16(4), pp.114-115. Martinez, M. 2001. Knowledge Intensive Firms. Business Horizons. Vol. 41(3), pp. 26 -31. OLeary, D. 2002. Technologies of knowledge storage and assimilation. Heidelberg: Springer. Quinn, J., Andersen, P. & Finkelstein, S. 2004. Managing Professional Intellect: Making the most of the best. Harvard Business Review. Vol. 64(1), p.36. Roos, J. & Von Krogh, G. 2001. Five claims on Knowing. European Management Journal. Vol. 14(4). pp. 423-425. Wolpert, D. 2001. The evolution of organizational environments. Administrative        Science Quarterly. Vol. 12(1), pp. 590-613. Zetie, C. 2003. The Price of Knowledge. Knowledge Management. Vol. 16(1), pp.159-160. Appendix Appendix 1: Questionnaire Name: Age: Designation: 1. Is knowledge management used in your organization? 2. Do you think the e-business strategies used in your organization are significant? 3. Do the e-business strategies affect the operations of your department? 4. What are the challenges you face in implementing KM in your daily work? 5. What do you think is the biggest benefit of KM in your organization? Read More