The paper "How Businesses Benefit from Using Knowledge Management Systems to Achieve Competitive Advantage" is an outstanding example of a management literature review. Organizations implement knowledge management systems with the hope that the result will be an increase in organizational efficiency, competence, efficiency and competitiveness. The paper shows how businesses benefit from the usage of knowledge management to be able to achieve a sustainable competitive advantage. The author gives a broad definition of knowledge management and explains how it promotes organizational learning. The reason as to why it is of great interest to business is extensively discussed.
The researcher has provided a conclusion which summarizes the text by giving a personal point of view concerning the subject: competitive advantage can only exist when the value exceeds the cost of creating it. Introduction The programs of knowledge management are typically tied to the objectives of the organization such as improved performance, innovation in competitive advantage, the lessons learnt, for instance between projects as well as the general development of collaborative practices. Knowledge management is therefore frequently linked to the idea of the organization that is learning.
It may be distinguished from organizational learning by focusing on specific knowledge assets as well as the development and cultivation of different channels through which knowledge is able to flow smoothly. Pfeffer & Sutton (2000) asserts that the application of knowledge to the enterprise technologies as well as process help in producing a competitive advantage. He suggests that there exists a truly “ knowing-doing gap” in the modern businesses whereby briefing, discussions together with planning sessions seem to take place of actions in various organizations. This is likely to create a passive form of culture whereby soundings smart is progressively rewarded in lieu of the real-world outcome.
This sort of arrangement creates an environment whereby the managers of various projects are highly interested in the acquisition of knowledge in place rather than at work.
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