Knowledge Management System of Google Inc - Case Study Example

 Knowledge Management System of Google Inc. 1. Introduction In the highly competitive business dynamics, knowledge management greatly facilitates firms to survive and maintain competitive advantage within the industry. The changing environment necessitates organizations to understand the changes and adopt innovative measures to exploit the same for higher productive outcome. The organizations tend to increase the productivity through increase in functional efficiency and structural modification or by introducing creative ideas for new product development. Effective knowledge management ensures that businesses constantly look out for processes and mechanisms that would boost their productivity and financial benefits. The current report discusses how Google Inc. exploits knowledge management to maintain its niche market position. 2. Background of Google Inc. Google has been a flagship company in the area of internet search engines. It has been distinct in its customer focused policies, development strategies and organizational culture that nurture creativity (Google Inc., 2014). As an organic firm, it uses horizontal communications to promote mutual understanding and shared learning. Their commitment to organizational goals is reflected in motivated teamwork that thrives on shared learning, participatory approach and multiple skill development. Google continuously strives to meet the changing demands of its users for generation of ideas for new products through its state of the art research and development facility. They have also diversified their business portfolio so that they can maintain their leverage in the market. Effective knowledge management has emerged as key enabling element that provides Google with significant leverage in the industry. 3. Understanding knowledge management Within the organizational setup, Grant et al. (2010) have defined knowledge management as a process that helps organisations identify, select, organise, disseminate, and transfer important information and expertise that are part of the organisation’s memory. Drucker emphasises that access to information is intrinsically linked to the success of a firm (2001). True because Google has exploited the information and knowledge for higher performance outcome. Data, information and knowledge facilitate informed choices that are linked to organizational goals and objectives, leading to organizational growth. While data defines the facts regarding various issues and subjects, information relates to the streamlining of the data into specific format such that it becomes valuable for firms. Knowledge helps exploit the information for organizational growth. Knowledge management within firms therefore becomes a crucial ingredient of success that manipulates informed choices to the firm with distinct leverage in the market. 4. Conceptualization of knowledge as strategic tool of competitive advantage Conceptualization of knowledge as strategic tool of competitive advantage gains relevance because in the changing dynamics of global business environment, implicit and explicit knowledge provide the firms with distinct competencies. Google has strong organic culture that thrives on democratic process and participatory approach, treating its workers as human capital with infinite capacity for creative outputs. Robbins and Coulter (2002) assert that organic firms have dynamic strategies that help to adapt to environmental changes with ease and share knowledge. Consequently, organic firms tend to challenge the status quo and evolve creative ways to influence and impact customers’’ choices and decisions. The tacit knowledge is accumulated knowledge within firm which becomes important factor that is manipulated for improving performance and meeting environmental changes (Nonaka, 2009). It influences organization’s willingness to create a highly motivating environment of growth and improved productivity. It helps to exploit human capital for improved performance. As such, organizations which encourage effective communication through shared learning and dissemination of vital information across the organisation vis-à-vis markets, products, technologies, and business processes etc. hugely boost the prospects of the business in the competitive market (Jashapara, 2011). Google has been very efficiently processing implicit and explicit knowledge through its creative approach that relies on new ideas and freedom to experiment with them. The knowledge management through effective communication becomes an intrinsic part of developing processes within and outside the organizational capabilities. 5. Framework and organizational strategy for knowledge management system Holsapple (2004) assert that knowledge management system or KMS broadly refers to a system that facilitates flow of knowledge across the organization from a person who knows to the person who needs to know. An effective KMS therefore promotes constant learning and dissemination of information across the firms on a regular basis. The basic framework of KMS encompasses channels and tools that are used by firms to propagate and share information. Technology, especially computers, internet and mobiles have evolved into essential tools that enhance communication and help store and access relevant data and information in variety of formats which can be used by people across the organization, overcoming the constraints of time and space. Some of the major proponents of KMS within Google are as follows: 5.1 Developing information system It is the process of storing and manipulating strategic information to improve organizational performance (Walsham, 1993). The data and information provide wide-ranging knowledge about the existing and emerging paradigms of the business world which may have considerable impact organizational performance. Google’s operational efficiency is mainly based on collation of information that exploits knowledge for optimizing performance. 5.2 Promoting business alliances, collaboration, mergers etc. Collaboration, alliances, and mergers etc. are important linkages that facilitate higher level of efficiency and organizational growth. Coombe and Georghiou (2002) claim that network relationship has become more relevant as it provides the firms with plethora of informed choices for improving and improvising productivity through knowledge sharing. Consequently, networking with different organizations significantly influence innovation and learning processes across industries. Google has forged various B2B strategic alliances with other businesses like Salesforce.com . Columbus (2005) asserts that the strategy has been hugely successful because it complements the Google AdWords platform such that the power of Salesforce.com's on-demand applications are able to achieve integrated sales and marketing activities as perceived by Google. The association helps Google in attracting and retaining all types of businesses across the world at lower cost. 5.3 Research and development Research is vital academic tool that promotes innovation and helps create platform for transfer of knowledge (Powell and Grodal, 2005). Research in the scientific and technical areas boosts discovery and invention of new products which tend to provide firms with financial benefits as well as with revenues incurred from patents and ownership rights (Darby & Zucker, 2001). The concept of patenting knowledge in the form of new products has facilitated the commercialization of knowledge. Google invests heavily in research and development as it believes that improvements are always possible. Its state of the art R&D facility is essential part of its KMS and encourages innovation and experiment with new ideas to improve user experience. Thus, R&D has emerged as vital part of KMS within Google that identifies new opportunities and challenges the status quo for carving out fresh opportunities of growth (Dubois, 2013). 5.4 Developing collaborating tools for sharing knowledge Firms are constantly innovating technological channels for improved communication. The emergence of social network sites like Facebook, twitters etc. and the using smart phones and video conferencing to share ideas and information amongst people across geographical boundaries has greatly facilitated transfer of knowledge. The companies are increasingly exploiting technology to boost their knowledge database. By acquiring Facebook, Google has shown the power of collaborating tools like Web 2 and social networking sites including twitter, Facebook, LinkedIn etc that facilitate sharing of asymmetrical knowledge with greater success. (Cheffy & White, 2011). In the current environment of rapid globalization, collaborating tools become hugely pertinent because they help to develop strategic choices that help firms to develop and expand in highly competitive business environment. 5.5 Promoting learning environment Creating a facilitating environment of growth and learning is important as it encourages the workforce to improve and improvise their core competencies (Sloman & Philpott, 2006). Google supports a decentralized system of democratic processes that creates an environment of trust and accessibility to resources and people within and across the organization (Little et al., 2002). The learning environment encourages experiment with new ideas without the fear of repercussions. Thus, KMS that is linked to creative input/ output that emphasizes the need for continuous learning process as the vital facilitating agent for gaining leverage. 6. Critical analysis Luftman et al. (2012) assert that business agility and speed to market is essential for business survival in an uncertain and volatile economy. The technology, especially information technology and various channels of communication have developed into powerful tools of exploiting knowledge database. But at the same time, the organizational competencies in terms of tangible and intangible resources become the key constituents of firm’s success. The tangible resources including technology and state of the art research and development facilities etc. help to increase the efficiency of the firm and provides them with facilitating environment to anticipate and meet the challenges with high efficacy. Indeed, the various paradigms of knowledge management system cater to the challenges of environmental changes and help to meet them through flexible approach and creative input. The knowledge intensive firms like Google tend to rely on myriad channels of development to promote knowledge acquisition. Google is an organic firm that encourages in-house learning and encourages open discussions and experiments to evolve innovative ideas. This is one of the key reasons that Google has been able to maintain its niche market position and constantly comes up with products and value added propositions for its customers. Google’s example shows that managing knowledge across boundaries involves knowledge processes that are used to transform and transfer knowledge across workforce and to the customers who reap the benefits of effective KMS (Newell et al., 2009). In the MITRE Corporation, KMS is inherent in its business strategy that creates constant learning environment for its workforce and encourages shared learning that is inculcated within the corporate culture (Rao. 2003). This is highly effective way of transferring tacit knowledge across wider segment of people across the organization. People learn from the experience of others which not only helps to propagate distinct cultural competencies and tacit knowledge but also helps to innovate and evolve new mechanisms of operational efficiency. These are pertinent examples of effective KMS where knowledge is shared and transformed in order to optimize performance outcome. It has been successful in implementing KMS as it promotes KM behaviour through incentives and ensures that new ideas and knowledge goes viral across the organization and adapted within the operation successfully. The major barriers to KMS within organization are failure to align KMS within the broader organizational strategy. It is important that postulates of knowledge management must be exploited within the work activities so that efficacy of information is tested and exploited optimally. Most importantly, KMS must promote customization and ensure that knowledge database is categorised into cohesive and specific format so that access to relevant information is faster and more accurate. Moreover, KMS that intelligently applies knowledge to harness gainful information hugely aids in developing wider perspectives and innovative solutions to the problems. 7. Conclusion Knowledge management system is vital paradigm to harness information and promote its evolution in myriad formats. It is important for organizations to develop effective KMS as it is designed to build collaborative tools for propagation of knowledge and exploitation of information to meet the challenges of environmental demands. Nonaka (2007) rightly affirms it as an important part of modern organizations. They tend to exploit the tenets of technology for managing and exploiting knowledge database and therefore necessitate creating enabling environment of technology within organizational setup for higher success rate. It provided firms with competitive advantage as exponential growth of KMS relies on technologies that support generation, codification and transfer of knowledge across wider platform of users in a faster and more efficient manner. The knowledge-based enterprises therefore create shared information workspace where generation, exchange and effective utilization of knowledge is encouraged. The KMS provides them with effective leverage to anticipate changes and evolve innovative mechanisms to succeed against all odds. (words: 1947) Reference Chaffey, D. And White, G. (2011) Business information management: improving performance using information systems, London: Pearson Education. Columbus, Louis. 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