Knowledge Management, Social Networks and Innovation - Essay Example

Knowledge Management, Social Networks and Innovation By: + Generally, competencies and knowledge exhibited by an organization are seen as the innovation’s key drivers where knowledge management is pivotal in any innovation success. Nevertheless, the process of knowledge management for the innovation purposes is not always seamless. Rather, it is one filled with complexities, intricate and sometimes somewhat hard to manage as research done by Gubbins and Dooley (2013) suggests. With the recent studies showing that Social Media have been turned into great assets, many organizations are utilizing them as resources for knowledge management (Careaga, 2014). Using Tesco as a case study, this paper seeks to highlight how KM can be integrated with social media in the creation of sustainable Knowledge management Systems (KMS) and in ensuring innovation. Organisational learning approach Clearly, social media has taken another direction in the recent times where consumers use these platforms to exchange ideas and give feedback on their experiences with various products. Contrary to the initial practice where the social media was used more of a chatting space, organizations have found that it as a place their products are sold or avoided (Plesner and Horst, 2012). As a result, many companies have gone ahead to create their pages where interactions with their clients occur all times in a bid to have a better understanding of their needs (Curado 2006). When the social media platforms were invented, none of the corporate players viewed it as a place that vital opinions could originate. Apparently, it was seen as another place where could idle around or exchange greetings and photographs. However, as Jennex (2010) reported, the Social media has played an integral role when it comes to improving how business people carry out their transactions. For instance, now companies use these platforms to advertise their products which are being released. Additionally, firms dedicate some employees to respond to queries from the clients on the platform. Ni Brohin (2015) who argued that any business that is nonchalant about the social media risk ending in oblivion shares the sentiments above. The reason for this assertion is that people nowadays have more time for social media than even the website than even the newspaper. In short, clients to have their issues addressed have viewed social media as the easiest place. Many times, clients want to have their queries addressed in the shortest time possible, and website and emails do not guarantee this unless the former has a chat-enabled feature (Jennex, 2010). Further, it is not only used in gathering of information about not only the customers’ preferences but also the competitors’ information as well. In essence, social media has tremendously transformed the knowledge management approach. Normally, knowledge management entails the identification, creation, representation, and distribution of experiences and insights in an organization (Wang & Ahmed 2002). Once this is done, it helps in ensuring that an organization is aware of its clientele’s needs, meets them as well capitalize on the competitor’s weakness (Myburgh, 2005). Additionally, it could be used in improving an organization’s seemingly weak areas. In light of above, it explains the reason companies have taken the social media more seriously unlike in the past. It is for this reason that organisations have embraced a framework, which entails several stages. First, a leader is crucial in order to provide the vision for an organization as this helps greatly in setting the trend. That is to say, the top management has to demonstrate the willingness to embrace and spread Organisational Learning (OL). Once the drivers have expressed and proved their commitment, the enablers play the role of implementing the vision (Yanow 2000). At this point, several factors influence the efficiency of the adoption of the OL including the organizational culture as Kris (2009) reveals. In short, the mind-set and habits that have been set by the employees in an organization will be pivotal in establishing this process. In addition, motivation will determine the depth at which the OL is adopted where employees’ commitment is vital. Individuals in any organisation will be instrumental in the application of this process. However, the success of the individuals is intertwined with the organisation culture (Good 2006). That is to say, the notions held by an individual will influence the success of this process. Finally, internal forces will be vital in the OL because they entail such things as cooperation, innovation, competition, efficiency, direction, conflict and proficiency (Kris, 2009). The nature of Knowledge management Once organizational learning is adopted, knowledge management becomes easier and this helps in the planning and even decision-making in a business. Consequently, the conflict in understanding the concept of knowledge, varied definitions are offered. However, Carlucci (2014) states that business knowledge is a valuable resource that enables an organization in both competing and innovating. Moreover, knowledge is often characterised by access to information, a capacity to handle it and the right attitude to utilize it (Geisler, 2007). In essence, knowledge may prove to be less helpful for an organization if after receiving it there is no way to store it, and a negative attitude is entertained. Further scrutiny reveals that beneficial knowledge to the organization undergoes certain stages. First, the stage of experience refers to when the individuals handling will apply it depending on their experiences within an organization. Skills are connected to the experience one has in the organization or previous undertakings involving a similar process (Fuller 2002). Character, feelings and personality of an individual sees further process of the knowledge. It is after going through these stages that a firm can benefit or fail to depending on the individuals handling the knowledge (Alstete, 2007). Concerning Tesco’s social media approach, there are statistics showing that the company has embraced it fully. Currently, the firm has a special social media team that is responsible for answering all questions arising from the platform. It was reported that in 2012, the team responded to 65% of the users’ questions. Surprisingly, this happened in about 81 minutes yet the followers were close to 80,000 (Hemsley & Mason 2011). Perhaps, this explains the reason the firm was awarded for being the most effective in the social media (Easterbrook, 2015). Therefore, the first proof that Tesco is committed to developing the social media for business advantage is dedicating employees for the same. Further evidence shows that the firm has about 30 employees who are then split into three teams where each group has another team leader. Then, these teams attend to queries from their online clients from 07:00hrs up to 23:00 meaning clients can ask questions anytime. During the weekends, the time somehow reduced but the system has been set in a way to record all questions. Usually, these employees’ only work is to answer the questions from the firm’s online clientele. Evidently, this step shows the company has realised the importance of handling the social media customers the same way as others (Plessis & Africa 2007). Five factors help the firm to remain on top in the social media matters, and offer customer service in an exemplary service. First, the firm states that reaching out is one of the principles embraced. In this part, the staffs have a desire to know the clients’ needs even before the latter have asked (Firestone & McElroy 2003). Secondly, there is the understanding part, which involves showing the clear understanding of the clients’ plight and striving to solve it effectively. Moreover, it entails equipping the staff with all knowledge in relation to the social media such that assisting the clients becomes easier. Gaining insight is the third component the employees at Tesco exhibit where all are committed to continuous learning in a bid to help the clients. This initiative is line with business innovation where Miller and CôTé, (2012) stated that a business that allows itself to be leapfrogged by its clientele in technology matters risks on its growth. Teamwork is vitally important to every business, not just Tesco alone; in the firm, this part is emphasized to ensure there is harmony. This is evidenced by the rotating trend in the firm where any staff can be allocated any post. Most significantly, this is made possible when the social media employees familiarize themselves with other information about the firm (Gordon & Grant 2004). As a result, answering questions to the client becomes easier since there is no need to seek clarifications from other. As a result of investing on this platform, Tesco has seen a rise in the number of clients seeking assistance online. Reports reveals that 7,500 were the Tweets received every week where a whopping 60% of this needs response. Unlike in the earlier case where it responded to 65% of the requests in 81minutes, 93% of the enquiries only need 43 minutes (CCA, 2015). Due to the increased investment on this media, the firm’s Facebook base has grown up to over one million. It was reported that whenever clients enquire on anything, this information is passed on to the relevant departments where it is used in the improvement of services. The social media has the capability to boost knowledge management, business intelligence as well as innovation (Jennex, 2010). While these assertions may seem somewhat unrealistic, evidence sufficiently confirm them to be true. As noted, Tesco’s Facebook page is very active on a daily basis where the firm keeps the followers glued to the page. Normally, clients are allowed to express satisfaction or lack of it thereof, toward any of the products or services offered by Tesco. Upon receipt of this feedback, the firm strives to have as many views as possible to ensure the opinion expressed is not counterproductive. If the opinions received are confirmed to be without prejudice, the firm improves on the product. The result is that the clients will be satisfied and the company will always be aware of the products that clients are not happy with. Business Intelligence can be gained by closely following the competitors’ page or using the comparisons offered by the clients. One thing about social networks is that clients speak freely meaning they can criticize or compliment a company’s product. Often, clients could compare a competitor’s product with another firm’s where the affected firm could use the opportunity to learn about the uniqueness of the competitor’s products. In this case, Tesco has been committed to addressing the issues presented by the customers online (CCA, 2015). Two approaches have been witnessed on Tesco’s Facebook page: first, the firm normally makes one post daily. The post is about the company’s products or services meaning it uses as an advertisement platform as well. Secondly, fans that are fond of playing games are required to like the page first before access to the game is granted. This tactic helps in marketing the products as well as increasing the traffic for the firm (Easterbrook, 2015). While this may not seem like any significant, social media, success requires strategies one of which understanding when to post and an increasing fan base ( Christensen & Bang 2003). Again, the firm has made it very clear to the social media team of the ever prowling of the competitors. In order to limit disseminating any information that aids the competitors, the team is trained on how to distinguish a competitor from a client. Therefore, in summation, Tesco has used the social media for knowledge management and organizational learning. Framework for successful organizational learning Innovation recommendations for Tesco Having provided the scenario at Tesco, there is a way to improve its services through innovation especially in the social media. First, it was reported that the firm has a 30-man team dedicated to handling the clients in these platforms. Also, the information provided showed that on weekends and late nights, the firm has no staff, and instead has to answer the queries the following day. Therefore, one way to become innovative is to have another team that will be working throughout the odd hours, including the weekends. This way, the company will continue to boost its knowledge on the clients, services, and competitors. As noted by Baoan (2014) innovation in any business could potential propel it to achieve its goals in a shorter span than initially planned. By adopting this recommendation, Tesco could also ensure that competitors are not ahead, because it is unlikely that a competitor would stay awake such late hours (Boyle 2007). In addition to this method, the company could also use promotions to win more followers through the social media. Currently, the firm enjoys a 1.1 million fan-base but this could increase if some attractive promotions are offered. Instead of using games as a way to attract clients, company could offer some giveaways where participants have to like the page in order to participate. In the 21st century, clients are more focused on the discounts than advertisement hence the need to focus on the former (Kim and Kramer, 2006). Therefore, Tesco could increase its profitability by utilizing the social media through attracting clients by a way of giving some discounts and running promotions. Posting more than one advert needs to be done at Tesco with an aim of engaging the fans as is the case with Wal-Mart. Tesco normally posts once a day unlike Wal-Mart that can post up to three times where even the picture is enticing. Similarly, Tesco ought to adopt this option but focus at ensuring the fans remain both entertained and informed. As reported earlier, the social media is now being used by clients as a way to recommend products meaning the more satisfying services are the better for the company. By engaging the clients through posting more than once, Tesco will be able track the preferences of their clients as well as new ones. This is in line with assertions by Blunt and Hill-Wilson (2013) that social media can only be of benefit to an organization that is conscious of client’s wants. The organisational learning at Tesco seems to be superb but there is need for continuity on the same because competitors could devise ways to get information through the social media. For this reason, the company ought to continue investing on the staffs’ knowledge in the social networks matters. Knowledge management is imperative hence, Tesco need to find a way to turn this into an asset especially in dealing with competition. It was not reported anywhere that Tesco has used this information to handle competition but only to improve its systems. Yet, an organization’s need for KM is not only to improve itself but also to seize the opportunities that may be oblivious to the competitors (Adner, Oxley and Silverman, 2013). Finally, Tesco need to beware of the competitors who may camouflage as followers on their page. Normally, some competitors would like to capitalise on the weaknesses exhibited by their rivals. One way to do this is to see how customers complain about their services; the competitors then find ways to seize the opportunity. Secondly, not all information ought to be released online; information ought to be restricted to promotional (Jennex, 2010). Also, as noted, the firm needs to increase its activities on the Facebook page from posting once to several times daily. This action will make sure that more questions are answered; the interaction levels with the clients will be improved, not to mention it will increase chances of more advertisement. Therefore, KM, OL and innovations are possible in this era of social media, but only beneficial when the firm involved understands how it works for its benefit. Bibliography Adner, R., Oxley, J. E., & Silverman, B. S. (2013). Collaboration and competition in business ecosystems. Bingley, UK, Emerald Group Pub. Alstete, J. (2007). An assessment of knowledge growth stages in organizations. Pal-Grave Journals, 5(2), pp.54-55. Baoan, L. (2014). Knowledge Management Based on Big Data Processing. Information Technology J., 13(7), pp.1415-1418. Blunt, C., & Hill-Wilson, M. (2013). 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