BUSINESS SYSTEM AND MODELS

Business System and Models

Business System and Models

Introduction

The rise of globalization has intensified the competition. In order to achieve a competitive edge, the organizations need to operate beyond their national boundaries. In the era of globalization, the organizations realize significant need for long-term competitive advantages that can easily be adapted by the organization. Moreover, the dynamic changes in the corporate environment require adequate actions constructed on the basis of valid information. This is not defined in the current level of requirements imposed by diverse organizational environments. In this era, where organizational development faces the dynamic modifications, there is an approach aimed at reducing risks at enterprise level by incorporating knowledge management.

Knowledge management system is a process and procedure for capturing, organizing, analysing, interpreting and adding value to information as part of a wider set of managerial goals. If access to raw materials was the mainstay of industrial societies, access to information is said to be the mainstay of post-industrial knowledge economies. However, the mere possession of information is not enough; it must be accumulated, protected, leveraged and used to address specific managerial goals. The process of knowledge management in an organizational context emphasizes understanding of knowledge at the individual level. This incorporates cognitive beliefs, encountered experienced and knowledge about diverse field and industries.

Moreover, the process of knowledge management is conditioned by the environment; moreover, the procedure is enhanced and systematized by the capacities of the source of knowledge. There are several roles played by people in the corporate environment within the management area that are responsible for creating value through knowledge. On the other hand, knowledge of value for organizations is one process that gives direct support to actions aimed at meeting its founding objectives. This requires systems as well as appropriately skilled employees ('knowledge workers'). Together, these add value to the information and, thus, to the organization. This has led to detailed analyses of the skills and know-how that firms and their employees possess, these being referred to as 'capabilities' and competencies.

Effective Knowledge Management System

The area of knowledge management has grown tremendously in the past two decades, often in association with developments in telecommunications, information technology, software engineering and management consulting. This has underscored the importance of hiring and retaining skilled employees (intellectual assets and human capital are seen as the key assets of knowledge-based organizations, not capital plant and equipment). It has also led to rethinking of organizational structures (such as the formation of adaptive and flexible project teams, not rigid functional hierarchies). Indeed, the whole subject of knowledge management is linked closely to the subject of organizational learning and learning organizations.

Therefore, the existing knowledge management system in an organization can be acknowledged as knowledge synergy resulting from the different interactions developed through the organization's operating history upon which the organization will develop each of their actions (Gorelick, Milton, April, 2004, 101). Moreover, the proposed actions of an organization may also be directed by its business objectives and long-term ...