Importance of Knowledge Management - Steve Paul Jobs - Case Study Example

Running Header: Knowledge Management Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: Knowledge Management Introduction According to Business-Dictionary (2010) and Yogesh (1998, p. 125), Knowledge management is the strategies and processes that are designed capture, value, identify, influence, structure, and also share intellectual assets of the organization in order to enhance competitiveness and performance. Knowledge management is based on two critical activities which included capturing and documentation of individual tactic knowledge and individual explicit. It is also based on its dissemination within the organization. Knowledge management is a set of tools that aims at creating, storing, sharing, acquiring, processing and utilizing the flow of knowledge within an organization. Ikujiro (1991, p. 100) maintains that Knowledge management also involves process whereby organizations produce value from employees’, customers’ and partners’ knowledge. It involves sharing of that information among employees, other companies as well as departments in order to improve the performance of organizations. Knowledge is crucial towards adaption, survival, and competence of the organization in continued change of business environment. Organizations should utilize the existing human knowledge within an organization. Knowledge management is crucial towards innovation in organization so as to improve its performance efficiency. Leonard-Barton (1995) argues that Knowledge has in the recent past become main strategic asset, and therefore, it is crucial for organizations to invest in knowledge in order to be able to succeed in its functions. Importance of Knowledge Management According to Eugene, F. and James (2004, p. 123), Effective use of knowledge resources ensures the organization is able to react to the shifts of marketplace in a more flexible and faster way. Learning ability of both the organization and employees ensures that the organization is able to adapt towards increasing market pressure. It is important for knowledge to be distributed throughout the organization to ensure improved performance. Knowledge management has in a great extent assisted organizations towards establishment and achievement of its strategies and goals. Knowledge has enabled organizations to add value to their operation processes as they try to meet their overacting goals. The added values need to be specific as well as measurable in order to meet organization goals and other achievements. Morey, D, Maybury, M & Thuraisingham (2002, p. 178) argues that Exploitation and coordination of the organization’s knowledge is crucial towards gaining advantage in competition and other benefits in business management. It is important to share knowledge throughout the organization; this assists in achieving targeted goals while creating more knowledge from the basis of existing knowledge. Knowledge management assists in a great extent the utilization of both tactic and explicit knowledge towards creation and fortification of competitive core-competencies. According to De Geus (1997, p. 56) and Dixit (1995, p. 105), Knowledge management comprises of deliberate activities that aims at maximizing the performance of an organization as well as finding other new opportunities and possibilities of expanding operations. Knowledge management emphasizes more on people management rather than communication and information technologies. Knowledge management insists on sharing knowledge while adapting and promoting the creation of more knowledge among the workers in organizations. Knowledge management aims at managing and controlling intangible assets and human capital. Knowledge management is key aim towards raising competitiveness ability of an organization. It assists in a great extent in achieving the overall objectives of organizations as well as achieving high efficiency and productivity. It is crucial for management to encourage employees to share the knowledge they have towards the improvement of the organization. They need to be encouraged towards making initiatives in their organizations’ departments as well as knowledge sharing with their colleagues and management. Knowledge-Management-online (2009) maintains that Knowledge management focus on organizational goals including sharing of learned lessons, integration and continuous organization improvement, improved competitive advantage, performance and innovations. Knowledge management assists in the reduction of redundant work, retaining intellectual capital as organization’s employees turn over as well as reducing time for training new employees. It also assists in adapting to changing markets and business environments. Knowledge Management and Steve Jobs Brian (2009) and Ian (2010) maintain that Steve Paul Jobs is the cofounder of Apple Company which is a computer company. He has changed the way people think and the perceptive they have towards movies, music, telephones and computers. Jobs has for several years hustled into technology market for over 25 years. He has faced a lot of competition from other computers producers like Google. Steve Jobs has led Apple towards innovation of gadgets like iPad which is a notable technology in computer market. Steve Jobs encourages his employees in ensuring Apple Company is able to compete effectively with other existing technological organizations in the world market. Steve Jobs encouraged his employees to utilize two categories of knowledge towards increasing competition capability of Apple Company. These included tacit knowledge and explicit knowledge. Tactic knowledge is the internalized knowledge that individuals are not aware of consciously when accomplishing certain tasks or roles in their departments. Steve Jobs encouraged workers to utilize explicit knowledge that involves knowledge that individuals hold in their mental focus; this knowledge is easily communicated to others. Therefore, this explicit knowledge played a great role in ensuring Apple Company endured stiff competition from other related companies that are technologically based. Steve Jobs utilized a knowledge proposed model (SECI) that ensures explicit and tacit knowledge interacts spirally in ensuring knowledge is utilized towards improving knowledge in Apple Company. SECI is a model that emphasizes on Socialization, Externalization, Combination, and Internalization of knowledge among the employees within the organization as emphasized in Kirby (2005, p. 156). Interaction of employees with an organization ensures there is socialization that results to knowledge exchange among workers. Combination of several ideas and knowledge ensures that the performance of the organization is very high and effective. Steve Jobs emphasized on the importance of creating and utilizing new knowledge among employees in the organization. He emphasized on the need to transfer knowledge as well as exploiting the existing knowledge among the established employees, groups or departments as it is argued by Alexander (2008, p. 34). Strategies towards Achieving Knowledge Management According to Alavi (2001, p. 107), various strategies like knowledge capturing incentives are vital for any organization that aims at achieving in its performance. This includes making submission content mandatory while incorporating rewards into plans of performance measurement. They are various strategies that managers can utilize in ensuring that there is adequate transfer of knowledge among the employees and the entire organization. Such knowledge management strategies include giving rewards as a way of motivating sharing of knowledge in the companies. Tactic knowledge transfer can be transferred through the use of story telling as a strategy towards knowledge transfer in the organization. It is also vital to review any action that has been done in trying to evaluate how far the knowledge has improved the outcomes in an organization. This will assist in trying to improve and coming up with other ways of transferring knowledge among the employees. Experts’ directory is vital when the need of seeking knowledge experts arises. This will ensure that they are reach quickly and swiftly in assist to solve problems that arises. Competence management also assists in evaluation competence of individuals that assists in knowing how their knowledge can be of importance to the organization performance and to others. Cross project learning is another strategy that can enable companies achieve greatly towards utilization of knowledge management. Proximity and architecture concerning employers is of great importance as it involves physical state of employees which can either be obstructive or conducive towards sharing of knowledge as argued by Davenport (2008, p. 45). Knowledge Management and its application in a global context Knowledge management has been used all over the world in various organizations resulting to achievement of beneficial and valuable outcomes. Apple Company through Steve Jones as a CEO has been able to attain its objectives in thriving through technological market by inventing new gadgets that are a cornerstone in the establishment and increment of its market share globally. Knowledge management has in a great extent assisted many organizations in gaining and achieving values in their production processes. Therefore, there is need to utilize and implement knowledge management in the organization in order to increase efficient, effectiveness and competitive advantage. Knowledge management in most occasions assists in the achievement of intended objectives and even exceeding those objectives. The knowledge management is not only to enable people to become knowledgeable but to be capable of creating, transferring, and applying knowledge with the aim of achieving better objectives. Knowledge management reduces costs of the organizations in the long run compared to other ways used in trying to achieve objectives. Effective Knowledge management application increases response speed as a result that is directly related to better access and application of knowledge. Effective knowledge management reduces tendency of repeating same mistakes if one utilizes systematic and collective processes well. Overall adoption of effective knowledge management can eventually improve the overall services and quality products. This eventually results to increased profits in the organization. Knowledge management in a great extent helps in the expansion and growth of an organization. Effective knowledge management and in particular hastened creation of knowledge is the key driver for innovations. This can well be illustrated in Apple organization where innovation as a result of effective knowledge management eventually led to its rise and invention of iPad in the recent past. This was possible after CEO Steve Jobs emphasized on the need to utilize knowledge management in Apple Company. This led to Apple Company being able to enter into global market hence competing effectively. Apple’s Macintosh operating system was able to compete effectively with Microsoft’s DOS and Windows software. This was possible due to its ability to utilize effectively knowledge management strategies throughout its operations in all departments. Apple’s net income increased from $904 million from $7.9 billion sales in previous year to $1.26 million net income from $7.9 billion sales this year. Better collaboration of physical and virtual teams by knowledge workers is driving to better new knowledge creation process. This is resulting to employees being able develop their confidence and competencies quicker in those organizations which apply effective knowledge management in their operations and processes. Conclusion Investing and implementing knowledge networks, processes, tools, technologies as well as methods should be a priority of the organization. This will eventually result to better learning, creation of knowledge as well as application of knowledge much faster. The companies or organization should participate fully towards utilizing rapidly increasing knowledge as an essential skill in life. Better utilization of knowledge and application of the knowledge management will result to transformed performance of the organization. Knowledge management tools remains tactic with time but methods, and strategies of applying and utilizing the knowledge change with time. This will assist in avoiding repetition of the same mistakes and errors with time. It is vital for leaders to work and make use of knowledge management in the current economy in order to be able to thrive and perform greatly. It is important for an organization to embrace and use knowledge management so as to gain strength to fight and stand competition currently and in future. Effective knowledge management at all areas including organizations, global community, teams and departments will succeed, develop or grow in future if they integrate knowledge management in its operations. Sharing knowledge is vital for the organizations as it enhances organization’s competitiveness greatly. Knowledge management is strategic in any organization and it is therefore vital for them to embrace Knowledge management strategies in order to be able to improve their business opportunities within the world market. Recommendations It is important even for small companies to embrace knowledge management to be capable to survive the competition among the large companies. Knowledge management should start with the top most management to lower part of the organization structure for it to be successful and effective. It is crucial for CEO’s and organizations managers to embrace and adopt knowledge management strategies to ensure their organizations are capable of achieving goals or objectives they intend to achieve effectively. It is recommendable for Organizations’ management and CEOs need to appoint knowledge managers in their organization who can look and ensure knowledge management is utilized maximally and efficiently. Knowledge manager should ensure that organization does not only create and maintain repositories of knowledge, but influences the organizations culture towards improving knowledge sharing, learning, innovation and sharing. Top management and CEOs in organizations should ensure knowledge management is utilized throughout departments in organization. This has enabled Apple Company to achieve their effective performance towards introducing their competition capability in the technological world through its CEO Steve Jobs. It is important that a qualified Knowledge manager is employed so as to ensure this becomes effective. He needs to have versatile knowledge portfolio and be conversant with organization behavior/culture concepts including collaborative technology, marketing and other fields. References Alavi, M 2001, ‘Review: Knowledge Management and Knowledge Management Systems: Conceptual Foundations and Research Issues’, MIS Quarterly, vol. 25, no. 1, pp. 107- 136. Alexander, S 2008, The relevance of Knowledge Management, Oxford University Press, New York. Brian, C 2009, Why Steve Jobs is Bigger than Bill Gates, viewed 20 May 2010, http://www.forbes.com/2009/01/14/steve-jobs-legacy-tech-personal- cx_bc_0114jobs.html Business-Dictionary 2010, Knowledge Management, viewed 20 May 2010, http://www.businessdictionary.com/definition/knowledge-management.html Davenport, T 2008, Enterprise 2.0: The New, New Knowledge Management? Harvard University, London. De Geus, A 1997, The Living Company, Harvard Business School Press, Boston. Dixit, A 1995, ‘The Options Approach to capital investment’, Harvard Business Review, Vol. 34, no. 7, pp. 105-112. Eugene, F. and James, A 2004, The Business Case for Knowledge Management, Journal of Knowledge Management Practice, vol. 23, no. 8, pp. 123-129. Ian, P 2010, Steve Jobs Disses Apple Rivals During Town Hall Meeting, viewed 20 May 2010, http://www.pcworld.com/article/188263/steve_jobs_disses_apple_rivals_during_town_ha ll_meeting.html?tk=rss_news Ikujiro, N 1991, ‘The Knowledge creating Company’, Harvard Business Review, vol. 69, no. 5, pp. 96-104. Kirby, W 2005, ‘Personal Knowledge management: supporting individual knowledge worker performance’, Knowledge management Research and practice, vol. 3, no. 3, pp. 156-165. 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Thompson, M 2004, ‘Placing Knowledge Management in Context’, Journal of Management Studies, vol. 41, no. 5, pp. 725-747. Tom, S 2002, ‘Knowledge Management’, Journey of Management Studies, vol. 8, no. 5, 387- 395. Yogesh, M 1998, ‘Knowledge Management for the New World of Business’, The Journal for Quality & Participation, vol. 34, no. 12, pp. 124-129. Read More