FINANCE

Assignment B: Managing Finance, Information, and Knowledge

Assignment B: Managing Finance, Information, and Knowledge

Concept and Benefits of Knowledge Management

The theory and approach of knowledge management suggests that knowledge is the asset of a firm that makes the business able to compete in highly competitive market. According to Robert S. Seiner, Knowledge Management is a concept in which a business a business accumulates, organizes, shares, and evaluates the knowledge of person and groups over all the company in manners that directly impacts on performance (WLE, 2006, p.4). Similarly, Meredith Levinson states that Knowledge Management is the system through which companies develop value from their knowledge based and intellectual assets (WLE, 2006, p.5). Thus, Knowledge Management system enables a business for efficiently achieving its targets by having the capability of transforming tacit and explicitly learning into habits, execution, as well as improved planning.

Commonly and generally the Knowledge Management system helps ensuring that the right information gets to the right people at the right time to make the right decisions (WLE, 2006, p.16). The Knowledge Management system provides the tools of increasing pertinent information access, facilitates knowledge sharing and collaboration, retaining institutional knowledge, shortening the time cycle, and overcoming the geographical as well as organizational boundaries. These tools result in the benefits of superior quality products, decisions, and recommendations; lowering cost of doing business, increasing productivity, as well as sound analysis and data collection.

The benefits of knowledge management include better positioning of the knowledge workers for coping with increasing Information-Overload; turning process know-how into a worthy business asset; helping the business in growing Networking (more knowledge nodes), lowering operating costs by replacing knowledge stores and information for inventory, avoiding duplication as well as waste by encouraging knowledge reuse, creating a more knowledge friendly as well as knowledge aware culture and Community of Practice(s) better suited to the rising knowledge-based economy framework; and allowing more leverage of knowledge assets through Knowledge Arbitrage strategies. Furthermore, it also provides better knowledge transfer while project execution, extends the international reach, scope, as well as the richness of the business, and develops a new extent of sophistication to manage the reputation, brand, and Intangibles that are valued by customers (Fred, Dietz, Liu, & Filipe, 2011, p.401). Thus, generally it enables the business to generate, capture, allocate, secure, distribute, enclose and utilize knowledge, intangibles, as well as intellectual capital.

Contribution of Marketing Information System & Financial Information System

Marketing Information System (MIS) holds an immense importance in increasing the effectiveness of economic performance to the firms in highly competitive markets, by giving the required information for different administrative levels. The success of the marketing process based on a large extent on the marketing information system and the success in each elements of this MIS. Marketing Information System (MIS) is useful for the marketing management in order to identify, measure, as well as forecast marketing options, in addition to analyzing market segments. This system comprises of people, integrated procedures, and facilities that are presented to provide management with regulated and accurate ...