AbstractOrganizations 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 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 through giving a personal point of view concerning the subject: competitive advantage can only exist when the value exceeds the cost of creating it.
IntroductionThe 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 through focusing on specific knowledge assets as well as the development and cultivation of different channels through which knowledge is able to flow smoothly. How Businesses Benefit From Using Knowledge Management Systems to Achieve AndSustain Competitive Advantage. 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 or arrangement creates an environment whereby the managers of various projects are highly interested in the acquisition of knowledge in place rather than at work. They also cripple the important “learning by doing” feedback loop which involves applying knowledge to a scenario which is new together with gaining contextual learning from that given application. Pfeffer & Sutton (2000) state that such newly gained form of knowledge does not just add to the knowledge bank but is also seen more a more reliable than more theoretical and abstract knowledge Gaining from knowledge application entails post-analysis as well as process evaluation.
That kind of evaluation results in managerial learning regarding what kind of knowledge initiative produced recognized business results. This form of learning is quite difficult and is often neglected by the firm. What needs to be put into consideration is that it is very vital to maintain the wellspring of knowledge. This form of implementation of knowledge and critical review assist in bridging the gap that exists between the possession of theoretical knowledge and the real application.
In this case, speculative ideas concerning what is likely to impact the bottom-line are tested in the real world. This is a very important step in advancing from esoteric conceptualization to a well refined knowledge which can have an impact on business decisions. Knowledge management, therefore, provide relevant knowledge which the knowledge workers in making appropriate that can determine the actions of the organization.