Utilization of Knowledge Management in Organization

Abstract

A characteristic feature of the present time is the rapid acceleration of the development process followed by exponential growth of knowledge and globalization processes to access it. Most developed countries base their economies as they are still growing dependence on knowledge and information. Knowledge management is increasingly seen as a condition for the proper and rapid economic and social development. Saturated markets, volatility products, and shorter product life cycles, widespread copying and finally successful market imperfections existing traditional management systems make the sources of success in achieving the objectives of enterprises seeking to continuous improvement, the implementation of modern management systems, especially knowledge management. The high position of knowledge management with visible results every step of the technological race with new products, production methods, and equipment. Business managers should be well aware of the far-reaching changes taking place in the global world economy. This includes the creation of global competition and the market, the introduction of global products and services, through utilization of knowledge management.

Utilization of Knowledge Management in Organization

Introduction

The end of the twentieth and early twenty-first century is characterized by an increase in the amount of information needed for effective decision-making, the widespread use of information technology and network capabilities, design and implementation of a huge number of new materials and technologies. Technologies that are used in modern industry, as a rule, are multifunctional. For example, in the automotive industry at the same time requires the use of new production and information technology, as well as knowledge in the field of design, engineering, new materials and possibilities of computer technology (Ferguson, 2005).

Competitiveness of businesses became dependent on the use of advanced technologies and innovative materials. However, innovative technologies without the experts can manage, as it cannot ensure the competitiveness of any organization. Intellectual capital and its main carrier people will be competitive advantage only if the company attaches great importance to its human resources, creating a coherent set of jobs linked technologically and organizationally, in accordance with strategic goals and creates conditions for professional development and skill.

The advent of new technologies, materials, equipment requires constant creative use and updating of knowledge, update skills, continuous learning throughout life. Intellectual capital is the determining element in the economic potential of the country, industry, or individual enterprise (Addicott, 2006). The process of development and improvement of its preparation for the challenges posed by twenty-first century begins today to draw more and more clearly, regardless of the level of economic development of the country in which the company operates.

Globalization of the world economy involving the dominance of multinational companies, which are looking for new markets and cheaper labor and faster much more likely to invest in less developed countries than it was 10-15 years ago;

Phenomenon of technological leaps that make companies learn from the mistakes of their predecessors and naturally pass one of the most modern technologies without misguided and incorrect solutions (Addicott, 2006).

Dynamic changes in the global economy have forced the companies to permanently improve ways of ...