Mehrzad Manuel Ferdows highlighted the importance of knowledge management stating that knowledge management incorporates the conscious process of defining, structuring, retaining, and sharing the knowledge and experience of employees within an organization with the main goal of improving efficiency and saving knowledge.
To maximize the effectiveness of an organization’s collective knowledge, a cycle of creating, sharing, structuring, and auditing knowledge needs to be accounted for. Accumulating, storing, and sharing knowledge are the three main areas of knowledge management targeted at enabling organizational learning and creating a learning culture where knowledge sharing is coaxed. Furthermore, tacit knowledge (knowledge that is more intuitive, less easy to package and share with others) and explicit knowledge (easily codified and taught) are the two main types of knowledge covered within the definition of knowledge management.
Overall organization’s improvement results from successful knowledge management in some ways like better situational awareness, best learning practices, etc.
The Significance of Knowledge Management
Mehrzad Manuel Ferdows pointed out the importance of knowledge management as a tool that boosts the efficiency of an organization’s decision-making ability as well as market share. It is argued that a smarter workforce to make quick decisions needs to be present to make sure that all employees have access to the overall expertise held within an organization.
Also, innovation is made easier to foster within the organization while customers benefit from increased access to best practices and ultimately employee turnover will reduce. Undoubtedly, in the ongoing ever-competitive marketplace, knowledge management is becoming more important and by building an organization intelligently and flexibly, organizations can take advantage of it to stay ahead of the curve considering that in the modern world issues can be spotted and responded quickly from a distance. There are many reasons companies begin knowledge management processes. The first reason is that it works as a merger or acquisition spurring the need for codifying knowledge and encouraging teams to share their expertise. The second reason reflects the need when the immediate retirement of key employees demonstrates the need to capture their knowledge. Besides, an upcoming recruitment drive magnifies the wisdom in implementing knowledge management to assist in the training of new employees. Furthermore, organizations will benefit from knowledge management since it leaves a more efficient workplace, helps with faster and better decision making, increases collaboration, builds organizational knowledge, increases employee happiness and retention due to the valuing of knowledge, training, and innovation, and most importantly optimizes employee onboarding and training process.
Mehrzad Manuel Ferdows reiterated that any organization willing to increase its bottom line and market share could make the most of knowledge management as an important tool.
Knowledge Management and Economy
Mehrzad Manuel Ferdows stated that in the evolution of human endeavor, the knowledge economy has progressed rapidly through the industrial age as well as the technological and information age. Taking human capital, knowledge, expertise, and innovation into account, this advancement has been driven largely by globalization and sustainability imperatives. These have demanded continual innovation and creativity to establish competitive advantage and long-term viability of international organizations. Also, new technology has served as an enabling factor that has made it possible for human capital to be developed, shared, and applied in new ways and at an immense scale and pace under the umbrella term knowledge management. Unquestionably, social systems have moved from the physical world to the virtual world thus the potential for capturing natural data has accelerated profoundly setting the business world in new directions. Therefore, knowledge must be captured by appropriate software systems or reporting systems or by designated personnel.
Weak Points of Knowledge Management
Mehrzad Manuel Ferdows mentioned the capture of relevant knowledge as a weak point in cycling knowledge management when work is done for customers or clients may be filed and archived without thought to relate to future projects. It is not the appropriate archiving of useful knowledge to be prioritized but the knowledge capture and information gathering need to be done and encouraged by designated personnel.
Processing and Distribution of Information
In the knowledge management cycle, it is prominent to notice the processing and distribution of information as it needs to be done to an essential point as in some cases, personnel engaged in a particular task may gain access to the relevant archive and benefit from knowledge stored within an organization. In large organizations, this distribution of knowledge can be driven by personnel like knowledge managers who are aware of the activities within the organization. Knowledge managers may also direct the relevant information to the activities at the right time as required.
Knowledge Management and Market Research
Mehrzad Ferdows stated that the knowledge archive will be updated and renewed as a result of feedback. This may lead to modifications in design or production. As sales statistics and market research results are updated, marketing methods and techniques may experience modifications. It is through the knowledge management cycle that technological innovations are developed and products are modified as a result of external information from information about competing for technology.
Mehrzad Manuel Ferdows concluded that knowledge management is recognized as a driving force of customer satisfaction, enterprise-wide innovations, and reducing operational costs. It can yet easily fall apart into fragmented, inconsistent efforts due to software inefficiencies. Organizations have to take a stab at a centralized and well-controlled knowledge management strategy incorporated with an actionable, clear-cut framework.