Implementation of Knowledge Management in Organizations and Its Benefits

Implementation of Knowledge Management in Organizations and Its Benefits

Knowledge management is important because its implementation provides benefits in the fields of operations and services, can improve personal competence, maintain the availability of knowledge and innovation, and product development. Knowledge management in simple terms can be interpreted as doing what is desired to get the most out of knowledge resources. Although knowledge management can be applied to individuals, it has recently become a concern of organizations (Mohajan & Kumar Mohajan, 2017). Knowledge management is seen as an increasingly important discipline that encourages the creation, sharing, and development of corporate knowledge. Knowledge management focuses on knowledge processes, knowledge creation, acquisition, refinement, storage, transfer, sharing, and utilization (Dalkir, 2011). An example of the important role of KM is if the company faces a case of resignation from an employee who has outstanding knowledge, while at that time there was no knowledge transfer for the replacement. It could happen that the employee's move was followed by a customer's move (Thomas, 2009).

For companies that desire to use knowledge management in their companies require the awareness that it is people who have knowledge, not systems, although systems have information and data that enable the process of knowledge. Secondly, knowledge creation means a social process, generated by socialization among people every day. Knowledge management is closely related to organizational memory as a repository of knowledge (Rhodes, Hung, Lok, Ya-Hui, & Wu, 2008).

Therefore, in this discussion, let's discuss how to implement knowledge management in an organization and how the benefits of implementing this knowledge affect company performance.

BODY

Implementation of Knowledge Management

For learning to be better, knowledge must be disseminated quickly and efficiently throughout the organization. The success factor of knowledge is very important in spreading knowledge from individuals throughout the organization which strengthens the knowledge culture of the organization. To speed up the innovation process, organizations must apply the determinants of innovation that are the causes of innovation. 4 Knowledge is a very valuable asset for companies. The more knowledge possessed by Stakeholders in a company, the more advanced the company will be. Knowledge management can help companies to share knowledge about business processes, and problems that occur in each work unit, and share experiences on matters outside of work that is beneficial for the development of knowledge from company employees.

Supporting the successful creation and implementation of knowledge management sharing, requires cooperation from all employees and managers within the company to build sharing habits to fill the knowledge management sharing. If knowledge management sharing is filled properly periodically with new information and knowledge obtained by employees and managers, then knowledge management sharing will be effective for use. knowledge management sharing can also make it easier for new employees to learn about the company because it contains information from all divisions in the company, as well as other knowledge that is not directly related to the company, but supports company development, for example sharing knowledge about the latest technology that already exists abroad, but not yet entered Indonesia. This can be an inspiration for companies in developing products and services, as well as using the latest technology so that they become the first company to bring this technology to Indonesia.

The process of implementing knowledge management requires several factors, namely humans, technology, and processes. Humans are important actors in the implementation of knowledge management where the result will be seen as whether the people in the organization can improve competence and knowledge for organizational goals. Technology is a tool or media used to share, disseminate, and develop various kinds of information and knowledge to all parties so that there is a common understanding in achieving organizational goals. The process is a series of stages in sharing knowledge and ensuring that knowledge management can be used as one of the organizational successes in the long term.

Benefits of Implementing Knowledge Management

Many companies have implemented knowledge management within their companies, for example in Aceh, they carried out post-tsunami development in 2004 using technology by creating a database of aid received from abroad and data on grant recipients. This aims to make development run in a transparent and accountable manner. The traditional/classical inventory system is the recording of the name of the owner of the house who received the grant along with his signature on paper. This causes a lot of falsification of data. With the application of knowledge management, grantors from within the country and abroad can check data from the geographical coordinates on the map to the physical shape of the house. Apart from that, the personal data of the beneficiary up to the handover letter with the house owner on stamp duty can also be accessed. The technology that helps implement knowledge management is the Geographic Information System (GIS) application (Anggun Susilo, 2007).

Or another example was carried out in South Sulawesi in 2008 to deal with flood problems which caused low agricultural productivity and low public access to public services. The process for creating knowledge management is through direct meetings between regional leaders and the community either by visiting villages and remote areas or by establishing a regular schedule to meet face-to-face with the community every morning between 6.00-9.00 am at the official residence of the regional leadership. Furthermore, the process of creating knowledge management by building networks and partnerships with several universities/agencies such as Unhas, BPPT, Biotrop Bogor, IPB, UGM, Bali Padi Sukamandi, BATAN, Balitsereal Maros, Global Seafood Japan, etc (Cruickshank, 2013).

Looking at these examples it can be seen that knowledge management is very important for a company. So that the company can grow rapidly. Knowledge management functions as a planned as well as a systematic approach to ensure the good application of organizational knowledge. At the same time increasing ideas, innovation, thinking, competence, and expertise. The next question that needs to be answered is what are the benefits of knowledge management for a company? The following are the answers to these questions (Dalkir, 2011):

1.     Creating more exact decision making

    Very mature thought would generate each decision. From information and experienced evaluated from diverse essential aspects, something is decided according to crucial considerations. For instance, knowledge sharing is at all times learning dynamics of market and demand are required by customers at the same time. The company in that way at all times pays attention on selling favourite and needed things by the target market or customers.

2.     Develop customer service

    Giving the best service to consumers doesn’t only mean the responsibility of marketing personnel and customer service. But it is mutual responsibilities of all divisions in an organization. Accordingly, there is a great cooperation among the departments. It is necessary that a work team will not only focuses on interests.

3.     Enhance efficiency in ways and processes of working

    Better works are achieved by using an effective method in the way and process of working. every individual could work cleverer if the performance of the organization is often evaluated. It is specially related to the ability of taking opportunities of the whole available resources every time

4.     Enhance the amounts of products and services

    Apart from the capability to enhance the amounts of products and services, it could as well enhance all capabilities to be innovative. With that, all services or products to customer expectations could be provided. The responsibility for innovating at all times is the job of the research and development in general. But by the usage of knowledge, it is not just the job of one department but also becomes the responsibility of everyone or all group in the company.

5.     Save the requirement for time and cost

        Since well-structured and adequate sources of knowledge are exist, companies would use the knowledge easily to develop diverse contexts. That is why a company could obtain savings on time and costs required.

6.     Enhance knowledge assets

To be able to use knowledge, workers must have a source of knowledge. The source of knowledge in that way could enhance its usage. Thus, it could push the process of creativity and also improve diverse creativities.

An organization can be successful in winning the competition through the design and application of the right strategy. Knowledge management is an excellent tactics that companies could depend on. Each company must be able to look for more capabilities, knowledge, and resources of the company. The approach is the company and the members in the company. it is used by improving knowledge as the holistic measurement of knowledge management. In that it helps every member to examine all the requirements of the knowledge. it is also about providing members to discuss and argue of knowledge management. Thus, they could take measurement the effect of knowledge management as well as give facilities of knowledge according to knowledge management and culture exist in the form of documents and debates. Business competition becomes harder and knowledge management that is barely regarded enough could become obsolete in the next time. High innovations are essential factors of management to keep on supporting the success of companies.

References

Anggun Susilo. (2007). The Ineffectiveness of Aid in Aceh Redevelopment Projects. International Relations Depatement Brawijaya University, 33–42.

Cruickshank, J. G. (2013). Soil management. In Environmental Management in Practice: Compartments, Stressors and Sectors. Ministry of Agriculture Indonesian Soil Research Institute. https://doi.org/10.4135/9781446216187.n138

Dalkir, K. (2011). Knowledge Management in Theory and Practice. Elsevier. https://doi.org/10.1002/asi.21613

Mohajan, H. K., & Kumar Mohajan, H. (2017). The Impact of Knowledge Management Models for the Development of Organizations. Journal of Environmental Treatment Techniques 2017, 5(1), 12–33. Retrieved from http://www.jett.dormaj.com

Rhodes, J., Hung, R., Lok, P., Ya-Hui, B., & Wu, C. M. (2008). Factors influencing organizational knowledge transfer: Implication for corporate performance. Journal of Knowledge Management, 12(3), 84–100. https://doi.org/10.1108/13673270810875886

Thomas, T. (2009). The process of knowledge transfer. Baltic Business School.