Understanding The Key Aspects Of Knowledge Commerce Essay

Before we even discuss about cognition direction, a brief description of cognition will assist us to hold a deep apprehension of cognition direction. The theory of cognition has been studied for 1000s by many philosophers around the universe. It is really difficult to give the specific definition of cognition. Whenever speech production of cognition, we normally use the word “ cognition ” to intend fundamentally two constructs: the cognition of cognizing that ( informations and information ) , the cognition of cognizing how ( ability to make something ) . There are plentifulness of ways for people to acquire cognition, it can be learned from books or others, and it can besides be the experience of something has been done regular. No affair how we get the information, every bit long as we translate it into “ meaningful set of relationship which can be understood and applied by an person ” it can be known as cognition. ( Debowski, S ) . With cognition people can do first-class determinations, and thought can be turned into touchable merchandises. Knowledge is divided into two types:

Tacit cognition: This can be described as “ know-how ” cognition which is really hard for people to explicate how they apply it in the specific state of affairs. It besides hard to present from single experience or belief to another. The silent cognition is believed that it is basically in personal nature and this is something that people carry in their head. ( Sanchez, 2004 ) . To do the wider usage of cognition in the organisations, directors try to set up the interaction among their staffs in order to make the interaction and through that they can give the best public presentations or even make new thought that possibly utile for organisations. Besides that, the organisations can non merely do people to portion their cognition ; they should develop the employees of sharing informations to each other, what they should portion, how to portion and so utilize the cognition efficaciously. ( Plunkett, P. 2001 ) However, silent cognition is vague and hard to obtain, sometimes the organisations are non cognizant of the cognition that single posses. They do non cognize what specific sort of cognition that their employees carry. This common province has been said by Lewis Platt, CEO of Hewlett- Packard ( 1992-1999 ) “ If we merely knew what we know, we would be 30 per centum more productive ” . Even though silent cognition is difficult to portion, organisation depends much on it to guarantee the good quality and judgement of concern. If any staffs have the high degree of tacit knowledge they can developed through the cognition they have.

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Explicit cognition: In contrast of tacit cognition, expressed cognition is the cognition that can be documented, transmitted to other informations and illustrate it through images or accounts. Explicit cognition can be categorized into declaratory cognition, the simple cognition such as set of rules and facts, which can be explained. Procedural cognition enables the application procedure of something can be done. ( Debowski, S ) . The of import signifier of expressed cognition is work premiss, where it is believed that the organisation can assist individual to joint the cognition they have to make the cognition plus. Within the organisation, expressed cognition can be disseminated through paperss, drawings, manuals the best pattern. Information systems besides play a large function in easing the airing of expressed cognition assets in the organisation intranet of via the cyberspace. Normally, when the company believes that cognition can be made explicit which means it can be created through construction and learning procedure, it can better the organisation cognition plus. ( Sanchez, R ) . Explicit cognition is a human manner of showing idea, thought, belief and even emotion. We gain knowledge by “ contextualizing ” and “ understanding ” those informations and so turn them into expressed cognition. ( Blunt,2001 )


“ Knowledge is at the bosom of much of today ‘s planetary economic system and managing cognition has become critical to companies ‘ success. ” ( Kluge et al, 2001 ) .

Knowledge direction becomes one if the hottest subjects in the planetary economic system universe today, more and more organisations start to take the duty in pull offing cognition. But how do directors can pull off the cognition that single carries in the caput, the experiences they have been through or the ground of why they do something? The simple reply is yes, we can pull off cognition by encourage people to portion what they know to each other and so together they will make the value for organisations. Pull offing cognition is moved from the construct that cognition is power and cognition is productiveness. This is the manner organisation develop their mentality. “ Unfortunately, there ‘s no cosmopolitan definition of KM, merely as there ‘s no understanding as to what constitutes cognition in the first topographic point. For this ground, it ‘s best to believe of KM in the broadest context. ” ( Santosus, M & A ; Surmacz, J. 2005 ) . Knowledge direction is the procedure of placing and forming the rational plus that the organisation has, it is the impact of the long term public presentation of concern. The end of cognition direction is non pull off all the cognition of every individual staff but merely pull off the cognition that is necessary for the organisation. Knowledge direction involves three constituents. First, people create so portion and usage cognition. Second, processes get, form and reassign cognition. Last, with the aid of engineering, cognition is stored and people can entree to knowledge. Technology and procedure are concerned to be really of import in KM but people are the factor of make up one’s minding success. Peoples must willing to portion their cognition within the organisation otherwise it will decelerate down the concern. The size of the organisation is besides of import, if there are less than 150 people, the cognition will be easier to portion since they know each other. And when they need a specific cognition in one field, they can travel straight to the individual whom is the expert in the peculiar affair. This makes the communicating acquiring stronger, and together they will convey success to the organisation.


1. Competitive advantage

After we explore about the item of cognition and cognition direction, we might inquire why cognition direction is so of import presents. Knowledge direction is based on the thought that the most valuable cognition is people. That is why for many old ages, organisation have been seeking to pull off good their “ human resource ” . Furthermore, the universe maintain changing and cognition direction has province its function in concern, when about all the concern involve “ cognition work ” and when people work together they can make the “ cardinal driver to new thought ” . Knowledge direction is a chief portion of deriving competitory advantage. “ Competitive advantage is usually defined as the ability to gain returns on investing persistently above the norm for the industry ” ( Porter, 1985 ) .

In today concern universe, where 1000s even 1000000s of people try to do money by copying each other thought and vie in the same country of concern, it push companies must to make something different from others. Competitive advantage increased and being considered as the most of import cardinal thrusts of the long term success of the organisation in twenty-first century. This is the ability of organisation to accomplish superior place in the industry. Furthermore, cognition is the beginning of competitory advantage, the primary plus from the position of organisation particularly “ knowledge-based ” ( Grant, 1991 ) . Organization has to utilize the cognition which is alone from the rivals and with the aid of cognition direction system they can do the difference. From the point of position of organisation, knowledge-based is the organisation ‘s ability to “ make and use cognition ” , competitory advantage decidedly the beginning. ( Grant, 1991 ) . The cognition based theory province that organisation is besides distributer of cognition systems, intending they can “ make the cognition embodied single and societal interaction ” ( Kibet ; Samuel ; Mague ; Nyaga, 2010 ) . The value of cognition consequence is the organisation is able to unite cognition and capablenesss to the productiveness. When the organisation uses the capablenesss of cognition, it can derive competitory advantage which is harder for rivals to copy ( Armistead et. Al 2002 cited in Kibet ; Samuel ; Mague ; Nyaga, 2010 ) . For illustration, some companies may probably to concentrate on specific merchandises or services instead than spread out it or make new things. Look at Apple merchandises, we can easy happen the similar in the merchandise line, most of them tend to concentrate on the touch- screen such as: Iphone, Ipad, Ipod etc.

2. Better public presentation

Making concern is all about doing and manages all the procedures which are defined as the “ life blood of organisation ” ( KK Aw, n.d ) . Based on it we can easy separate cognition intensive and dealing. Knowledge intensive procedures are being known as the strategic in nature. Knowledge direction system merely merely back up the substructure, it besides must heighten the cognition in organisation work effectual toward to better public presentation of organisation ‘s concern. It is really of import to do certain that the cognition direction system support for multiple current and future concerns. ( KK Aw, n.d ) . Let ‘s take an illustration, if Apple finds out that there is a peculiar employee who is presently working as proficient applied scientist but he has many good thoughts about planing new Iphone merchandise, so that individual should be ship to work in design section to maximise the possible plus of company. Indeed, better company ‘s public presentation does non intend merely concentrate on employee but they key is how to develop people so they can give the best public presentation to company, this will necessitate the good preparation system. Harmonizing to Cedar Crestone there are seven enablers used to back up cognition direction: Information: The organisation must hold basic informations support concern activities like client contact, fiscal study, and merchandise list/ item. Knowledge bases: As I mentioned organisations besides need to hold information organized in clear papers such as common jobs the organisation may confront and how to work out them. Skill faculties: This is standard cognition for preparation staffs through categories or synergistic preparation. Collaboration: Organization should supply staffs opportunities to assist each other and portion cognition through conferences or meetings. Action records: Record all the paperss, undertaking or determinations that have been made in the yesteryear. Outcome information: the organisation can easy remember to past actions whenever needed. Last but non least, Shared penetrations: These are new thoughts or recommendations which can assist organisations to make better consequence.

When the organisation eventually has a clear position of what consequence their public presentation and the cognition needed, they can easy to make success. With the effectual solution in which can be used every twenty-four hours, this can be benefit for concern to big graduated table development. The good solution to cover with organisation ‘s jobs can clearly exemplify the betterment of public presentation.


If the staffs of an organisation merely necessitate to sharing cognition and work together toward a specific end, so being a director is much harder undertaking to make. Directors must take a wider position of the importance of cognition direction ; it is non merely approximately manage information and engineering but more significantly is pull offing people. The bookmans from Faculty of direction in Slovakia has identified the necessary abilities, functions and accomplishments directors must hold in pull offing concern, portion of leading accomplishment ( Papula, 1995, p.28 cited in Papulova ; Mokros, 2007 ) :

Creativity: Manager must be able to make thought and happen new solution for concern.

Intuition: Director should hold experience in developing concern in order to foretell the hereafter.

Goal- oriented: Manager besides have specific end in order to assist the organisation work toward it.

Scrupulosity: whenever director makes determination it should back up the societal value and norm of the state he works in.

These are merely some of abilities which I listed here harmonizing to the article “ Importance of managerial accomplishments and cognition in direction for little enterprisers ” ( Papulova ; Mokros, 2007 ) that can assist director in taking concern through times and develop it. Furthermore, director besides needs some managerial accomplishments such as:

Technical: Director is able usage peculiar methods and techniques in managerial work. Indeed, these are non accomplishments related to engineering like applied scientist. The proficient accomplishments merely help director in “ represent use methods such as prepare and carry on a construction interview. ” ( Papulova ; Mokros,2007 ) .

Interpersonal: Director needs to cognize how to take people, because people are the most valuable beginning in any company, they hold the cognition of plus in any organisation. With this accomplishment director can actuate workers, work out struggles and communicate with people. Interpersonal accomplishment is of import to all degree of direction. ( Papulova, Mokros,2007 )

Conceptual: This is the must-have accomplishment for in-between and top director. The ability to see the organisation as a whole and environing with relevant precedences and of import issues. ( Papulova ; Mokros,2007 ) .

Communication: Beside the verbal communicating which is really of import for director. Manager should be able to garner necessary in order to do right determination by distinguish verbal information, feeling. ( Papulova ; Mokros,2007 ) .

In add-on, the cognition life rhythm theoretical account it can assist director makes intelligent determination based on the resource and installation of organisation. I will present about the Wiig ( 1993 ) life rhythm theoretical account harmonizing to Dalkir ( 2005 ) , there are 4 stairss: Building, keeping, pooling and using cognition. These stairss are seemed like a sequence because each of them follows each other in determination devising. Let ‘s take an illustration: Samsung is one of the major rivals of Apple in supplying touch-screen merchandises. In order to make that, whenever Apple let go of a new merchandise such as the Ipad, Samsung may purchase it and open it so get down to larn how Apple do it. That is the first measure in cognition life rhythm, edifice cognition, Samsung build their cognition by observe another merchandise so larn their failing, eventually they have new thought in making a merchandise that can vie with Ipad. Next is keeping knowledge measure, non many people know about it because they still did non turn it to action yet, merely different thoughts and it must be keep as an unorganised secret. After that, they will seek to pool of these thoughts together and take the best one out of them ; this is the pooling cognition phase. Finally, when they already have the clear thought and how to turn it into existent merchandise, this is the action phase where cognition will be turn into touchable merchandise, using cognition phase. This is how Samsung can be able to vie with Apple by supplying the Galaxy Tab. ( Dalkir 2005 pp. 38-42 ) . Many researches have shown that organisation ‘s concern will be successful when the directors know how to work cognition by utilizing good leading accomplishments and managerial accomplishments. If direction is about control, manage resource that already exist so with leading accomplishment will assist director concentrate on the person accomplishments which is considered to be the most import cognition resource. ( Skyrme, 1997 )


Knowledge direction in the universe today is the most major support in organisation, it non merely helpful for director but besides for other staffs. With the usage of efficient cognition direction, it can transform organisation to a new degree of success operation. Through the advantage of engineering and information available, the concern director can detect and larn by garnering right informations in order to hold new chances and achieve concern end. Everyday the procedure of cognition direction is merely merely place which cognition can be re-use bend into “ new ” construct. As I mentioned, knowledge direction is the cardinal frogmans of organisation effectivity, maximising net income and competitory advantage. However, it is non simple and easy to using cognition direction in concern, they have to get the better of many issue such as engineering, organisation civilization and scheme. When they can make that, the concern will turn non merely in short term but for long term program of doing money besides.




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