Information Systems & Financial Modeling - Strategies & Benefits of Implementing Knowledge Management

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Table of Contents

1.0 Introduction2
2.0 Strategies of Implementing Knowledge Management4
2.1 Identification of key actors4
2.2 Knowledge Management Platform/ System5
2.3 Spreading the Word – stimulate the use of Knowledge Management5 3.0 Benefits of Knowledge Management7
3.1 Employee Development – Value Creation7
3.2 Increased Customer Satisfaction, Trust and Loyalty8
3.3 Support Tool for Marketing Initiatives9
3.4 Better Coordination of Technology Alliances10
4.0 Conclusion11
5.0 Bibliography12

1.0 Introduction

Knowledge Management (KM) is a strategic method of locating, defining, collecting, storing, sharing, organising, receiving and adopting valuable information and knowledge within an organisation. It is considered as an important tool that enables an organisation to constantly shift and improve to remain relevant in the ever changing business world. The integration of today’s advanced IT solutions coupled with strategic management of knowledge is the key to unlocking the true potential of an organisation (He, et al., 2009).

In Malaysia, most managers still use informal methods of collecting and accessing information such as interactions with colleagues and clients (Karim and Hussein, 2008). Examples of this are communications during company meetings, internal surveys and questionnaires, or a simple chat during lunch break. Apart from that, the study also shows that most Malaysian managers use the internet, printed materials and company’s database to capture information. Many organisations in Malaysia still use the traditional methods of storing information using ordinary computer tools which lacks the robustness in processing and managing large amounts of information (Karim and Hussein, 2008).

The diagram below shows the evolution of knowledge management initiatives:

Figure 1. (Source: Hoegl & Schulze 2005, How to Support Knowledge Creation in New Product Development: An Investigation of Knowledge Management Methods, 6, p.264)

This report presents journal findings on implementing good knowledge management strategies and systems that not only stores existing knowledge but also exploits them into new knowledge. We will then take a look at the various benefits that knowledge management can bring to an organisation internally and externally. This study then concludes with a discussion on the true values of knowledge management and what’s in store for its future.

2.0 Strategies of Implementing Knowledge Management

Karim and Hussein, (2008) stated that the basis of creating a knowledge management strategy is to first understand the information needs and requirements of an organisation. Quality information should be accurate, complex, benefits exceeds the cost of acquiring it, user targeted, relevant, authoritative, timely, and presented in a way that is easy to use. A good knowledge management system must be able to accurately pinpoint valuable information and organise it effectively so that it can be shared and adopted easily by employees.

2.1 Identification of key actors

When designing a knowledge management system, the internal landscape of the organisation needs to be given serious attention, mainly the employees. Managers need to identify key employees or in this case key actors who have critical information about the organisation and business processes (Raub and Wittich 2004). For example a marketing manager who holds the database of all the organisation’s clients and suppliers, and a senior developer who has all the programming scripts or access codes to the organisation’s computer systems. What would happen if these key actors resigned and did not pass on their knowledge and information to their counterparts? The loss of valuable knowledge is one thing, but the risk of these key actors misusing that knowledge for their own personal gain is something that needs to be...
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