Importance and Benefits of Knowledge Management - Literature review Example

Full title topic Introduction The paper aims to describe knowledge management, its importance and strategies used by the firms. This white paper uses the example of construction industries to inform that why this industry requires proper knowledge management systems. Lastly, the paper will define a proper information technological system that will suit the firm to pass the knowledge at various levels. According to Davenport, T. (2005) Knowledge Management is an organization tactics in which the organization has to identify, create, represent and distribute the knowledge in its level of hierarchy. The knowledge management remains a part of university courses since 1995 and many professional and academic journals have been published on this critical issue. Knowledge management fulfil the organizational objectives such as competitive advantage, innovation, developmental processes and improved performance. Knowledge management and its strategies are directly connected to learning organizations which want continuous improvement through continuous change in the organization with change in time and technology. Knowledge management and organizational learning are two different areas, as knowledge will be the asset of the firm and the firm develops different channels within a learning organization to pass this knowledge to different levels. Knowledge management strategies Knowledge management strategies involve different ways in which the knowledge is passed to different levels. This involves formation of strategies by the top management. This involves formation of knowledge council whose duty is to pass the knowledge to all levels, a separate team dealing with knowledge management and passing them out. But as the level of firm’s increases, they required for a specialized technique increases, as the better the formation of technique developed for knowledge management better the knowledge will be distributed in different levels. Therefore, this compels the businesses and organization to develop a better information technological system that can pass the information. Therefore, the paper in the last section will define a complete information technological system that can be used by the firms for a better knowledge management system. The paper aims to show the knowledge management within construction companies and problems that arises in pursuing and passing the knowledge among different levels. Easterby-Smith, M. and M. A. Lyles (editors). (2003) stated that the knowledge management within the construction companies requires knowing that “what are the latest techniques that can be used in constructing different buildings”, the use of latest technologies and tactics that are used in constructing different buildings. O'Sullivan, K. J. (2007) stated that these knowledge management also involve that how to care the environment while constructing different building, the use of less energy to keep the environment healthy. How to reduce the level of carbon dioxide and wastages, how to reuse these wastages are the basic knowledge provided by constructing firms. Moreover, the use of Brownfield’s and other land is also included in the knowledge management. Therefore, the knowledge management for any construction company is very important and thus required special system that can provide a better information system so that knowledge can be passed to different levels. The information technological methods are used by the firms in order to develop such system and hierarchy in which different information can be passed on to different levels. Knowledge management problems within the construction companies The knowledge management problems that the construction companies seek is that they are unable to provide enough tactics that the employees should used to avoid injuries. Similarly, the firms are unable to know that what is basically going on in the operational level so that the firms can control those problems. The employees are unable to know that how they have to minimize the level of energy used at operations so that less pollution should be caused by them. Tactics that should be used by the employees while working to reduce the level of wastages. These all information is required by the employees so that they can better perform their functions and can avoid different problems. Moreover, the construction firms are required to provide information that how they have to deal with their customers while showing them their buildings. The knowledge management is actually passing the information to different levels that are further sued by the employees at their work. Below a complete profile of information system is given that will helps the construction companies for their knowledge management. ISDM According to Avision, D. E. & Fitzgerald, G. (2006) the data processing system mainly depend on the condition of the firm, its hierarchy and size. The activities involved in data processing within the department lines are as Store Management, Production planning and control, financial accounting management and so forth with the growth in the technology the concept of integrated data processing also changes. Mainly the ISDM is divided into two main broad categories and these are given as follows Centralized Data Processing System Due to increased use of computers in the firm, there is a growing tendency of management to sue the centralized data processing system. In centralized data processing system, a separate department Electronic Data Processing (EDP) is established which mainly deal with the data processing work within different departments of the firm. Some time the firm hire the activities of other firm for data processing activities. The benefits of data centralized system is given as 1. The data emerge only at one place 2. The risk of loss of data is minimized by this method 3. The methods and machines used can be standardized 4. The process is very cost-effective 5. The work duplication is avoided by this process. Decentralized data Processing system In decentralized data processing system, the computing services are broken into different departments of the firm. Each department handles its own computing system without interacting with other departments. This type of system is suitable with the firm that is holding decentralization system in it. For instance, usually the research system or department of huge system adopt the process of decentralization data processing system. Information System Adelman, C. (2000) stated that information system for the organization is required as Construction companies wants to know the process and activities of its departments. This helps the firm to develop a better strategy for the firm. The information system is broken across different departments that help in getting the whole information of the departments. Due to information system the whole firm is view as network of inters related sub-system rather the hierarchy system of the firm. Under ISDM different methods are taken in account but not all the methods can be used by the Construction companies as some of these are only used in the complex organization hierarchy For Construction Company I suggest to use the model of Structured Systems Analysis and Design Method (SSADM). Structured Systems Analysis and Design Method (SSADM) Avision, D. E. & Fitzgerald, G. (2006) stated that the model aims to analyse and design the information system of the firm. The system was produced for the UK government office, CCTA, for the efficient use of the information technology. It was introduced in 1980 and still in use. The model name “Structured Systems Analysis and Design Method” is the registered trade marks of the Office of Government Commerce (OGC), which is an office of United Kingdom’s Treasury. It is actually a waterfall method though which an information system design is formulated. 5.2. Techniques used in SSADM 1. Logical data modelling: this technique requires identifying, modelling and documenting the data requirements that is needed to design the system. The total data is separated into entities. 2. Data Flow Modelling: this technique includes identifying, modelling and documenting the movement of data around an information system. This model or technique actually seeks the processes, data stores, external entities and data flows. 3. Entity behaviour Modelling: the events are identified; modelled and documented that affects the each entity. The models also inform the sequence of these events. 5.3. Stages of SSADM 1. Analysis of current system: the very first step is to analyse the current system. The Construction companies are required to investigate the current process and current data. Once he is able to clear the entire situation and comes to know each set of events happening, it will help him to design the model for the firm. 2. Outline business specification: this step requires investigating the system requirement in the current business environment. This step involves two sub-stages; logical data structure and business system options. 3. Detail Business Specification: it is the requirement specification stage involved different steps. Construction companies has to define the system processing requirements and then develop require data model. The next step is to derive the system functions that will update the existing system and define the new system. A work practice model is developed by the firm that help to document and understand the user’s jobs in concern. Further, organization needs to enhance the required data model whose objectives are to improve the quality of the required system by relational data analysis. The last three stages required by the Construction companies are to develop the specification prototypes, develop processing specification and in last he needs to confirm system objectives. 4. Logical Data Design: in this step technical feasible options are chosen that require two sub-stages; define business system options and selection of the business system option. The definition of Business Systems options identifies the possible approaches for the physical implementation of the function. It also informs the service level requirement during the implementation in the light of technical environment. This step actually concern with the presentation of the BSO’s to the users. 5. Logical process design: this step requires defining of user dialogue, defining the update processes and define enquiry processes. The definition of the user dialogue actually defines the structure of each dialogue. The dialogue is required to support the online functions and also help in identifying the navigation requirements. It is useful within the dialogues and between dialogues. Define update process complete the specification of the database updating. It also defines the errors for each event and helps in handling those errors. Define enquiry processes step complete the enquiry and also define the error handling for each enquiry. 6. Physical Design: this is the last step requires specification of physical data and process design. Language, features and installation standards are chosen for the physical environment. The physical design is the last mode of the technique that requires physical assessment of the system and functions and assessment of the events. The last step requires the requirements needed to physically implement the system. The sub-steps required by physical design are Preparation for physical design Learning the rules and systems of the implementation environment Reviewing the requirements for logical to physical mapping Planning this approach Complete the specification of functions Develop the data and process design, incrementally and repeatedly 5.4. Advantages of SSADM 1. It can easily be applicable on any firm, does not require any specialized staff to handle 2. It gives a clear look of all the activities in the system and the events that are affecting these activities. 3. It provides accuracies in finding the current position of the business system and tries to provide information about the root cause of problem. 4. The application or technique can be used from small to large firms. 5. It provides a continuous update of the systems and also defines the new systems 5.5. Disadvantages of SSADM 1. As the vertical hierarchy increases, the application of the technique becomes difficult. 2. It did not use the latest information systems and thus limited to some specific systems. 3. It requires time to understand the current business and then implementing the whole model. References Avision, D. E. & Fitzgerald, G. (2006) Information Systems development: methodologies, techniques and tools. 4th ed. McGraw-Hill. Adelman, C. (2000). A Parallel Postsecondary Universe: The Certification System in Information Technology. Washington, D.C.: U.S. Department of Education. Davenport, T. (2005), Thinking for a Living: How to Get Better Performances and Results from Knowledge Workers, Harvard, Easterby-Smith, M. and M. A. Lyles (editors). (2003). The Blackwell Handbook of Organizational Learning and Knowledge Management, Oxford, Blackwell Publishing O'Sullivan, K. J. (2007), "Strategic Knowledge Management in Multinational Organizations" Idea Group Publishing, Hershey PA Avision, D. E. & Fitzgerald, G. (2006) Information Systems development: methodologies, techniques and tools. 4th ed. McGraw-Hill Read More