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Knowledge is integral in enhancing success and profitability of companies in the world markets with regard to ensuing competitive market and dynamic economic trends that is facing many countries. It is believed that knowledge is power and many firms are acknowledging the fact that leveraging the internal knowledge is pertinent to gain the edge over the looming competition. It is a growing trend that implementation of knowledge management system is integral and basic in success
There is necessity to have formal management system of this intellectual capital, which is a fundamental process in business. Manufacturing companies are the ideal focus for conducting this study. This is because the aspect of management and investment of intellectual capital occurring in businesses and companies. The study is intended to find the insights in the profitability of manufacturing companies based on effective knowledge management practices. The firms or companies are essential places that entail daily functions and utilization of knowledge [url=http://tyw.lianlao8.com/space.php?uid=11984&do=blog&id=222003]louboutin pas cher Herbal Remedies for Anxiety[/url] thus calls for further study to be undertaken Improper management of the human capital may reduce the profitability of a company.
Knowledge is indispensable in increasing profitability and surviving competition of companies in the market. However internal company knowledge is crucial and fundamental basis for the success of the company (Andrus 2005, p.27). In essence, companies may have adequate knowledge to utilize but because of unsound management and harnessing this knowledge hinders the maximization of profits. Firms have the potential to realize the desired profits but due to poor management, there is a reduced profitability volume. The study intends to find out how knowledge management improves profitability of the company. This is critical because after the study is completed the results are disseminated. It will trigger positive change and boost profitability hence economic development.
To find out the ideal knowledge and skills required and considered critical to profit and success of companies. This may include the ideal skills of the management like the human resource managers that are important in implementing proper knowledge management. To [url=http://www.mnfruit.com/airjordan.php]jordan pas cher[/url] provide insightful consideration on the best practices applicable to [url=http://www.rtnagel.com/airjordan.php]jordan pas cher[/url] different levels of knowledge and skills in knowledge management. This gives the perception and close attention to pertinent knowledge and intellectual sectors that are crucial to success. To understand the importance of proper knowledge management on economic challenges and competition in market share. The study is essential in enhancing the survival and competition among companies. The perceived competition will influence the proper use of internal knowledge of the company to provide quality goods and services.
This promotes full use and exploitation of the knowledge because of the anticipated specialization in proper knowledge management. It is also critical in that there will be identification of knowledge gaps and shortcomings that require improvement or replacement. Through this study, it will be beneficial in that the needs on certain expertise will be identified. There will be ease of management because of specialization based on knowledge management hence clear channels of duties and responsibilities within departments and entire company. This is because of proper use of ideal knowledge in the ideal lines of duties. However, the improved quality derived from proper knowledge management is pertinent in enhancing competitiveness of a company in the market. When proper knowledge management is enhanced and profits realized, there is broad basis of expanding the company beyond the scope of geographical operation (Ferguson [url=http://www.ilyav.com/isabelmarant.php]isabel marant sneakers[/url] 2005, p.46).
Specialization also creates an aspect of diversification, which is indispensable in the survival of [url=http://www.mnfruit.com/abercrombie.php]abercrombie[/url] the company during all economic changes. Creating a system of knowledge management is beneficial to companies because of the fact that knowledge is critical to [url=http://www.mnfruit.com/louboutinpascher.php]louboutin pas cher[/url] business operations and strategies. This is often called corporate knowledge, which is any information relevant to the daily operations of a company (Addicott, McGivern and Ferlie 2006, p.87). The corporate knowledge can be found in management documents, company databases, and history files or even inside the minds of employees (Guba and Lincoln 2004, p.94). The knowledge in company employees is [url=http://www.sdnjnjj.com/E_GuestBook.asp]hollister[/url] valuable if managed properly. In ideal situations, varied pieces of corporate knowledge is dispersed or scattered throughout the company in forms of unconnected databases (Katsicas 2009, p.605).
The attempt to bringing these disparate and essential resources together creates the knowledge management systems. This is designed to collect, organize, and process corporate knowledge and skills to profitable or organized forms for company employees. The issue of knowledge management systems has been mostly used as a new [url=http://www.mxitcms.com/abercrombie/]abercrombie[/url] Information Technology buzz phrase, but companies and businesses have been keen on knowledge for decades (Guba and Lincoln 2004, p.91). The corporate knowledge can be found by records kept in company databases or ledger books in individual departments or as a collection of whole information [url=http://www.maximoupgrade.com/hot.php]hollister[/url] in the management of a company.
The business processes improvement company serve production, manufacturing, and distribution enterprises (Baskerville 2001, p.78). These processes require continued innovations that can only be provided by a rich knowledge database of the company. Manufacturing companies have been using form of knowledge management related to its products (Freshwater, Sherwood, and Drury 2006, p.295). The ideal method of maintaining accurate and up-to-date corporate knowledge [url=http://www.mquin.com/giuseppezanotti.php]giuseppe zanotti pas cher[/url] is through the Engineering Change Order system commonly known as ECO. Many companies, to maintain information about products and manufacturing processes use it (Wright 2005, p.156). This helps in identifying the expertise within the companies and extra expertise needed thus bridging the gaps. Through this [url=http://www.maximoupgrade.com/hot.php]hollister france[/url] system, efficiency in knowledge management is realized (Andriessen 2004, p.393). Through the past decade, more than two-thirds of valuable benefits come from knowledge management initiatives that are building from programs focusing on proper use and sharing existing knowledge (Wright 2005, p.163).
There is an internal motivational benefit of this system in that every employee in a company has an access to corporate knowledge. This is essential in delineating roles and enhancing specialization in productivity. In addition, [url=http://www.bbctop.com/news/html/?185207.html]jordan pas cher Improving Your Grades Via Communication And Study Guides[/url] other benefits include using knowledge management systems to turn intangible corporate knowledge to actual business assets and subsequent productivity with eventual profits. For instance, a system can capture how a manufacturing company addresses a problem and package the solution process to a comprehensive document (Baskerville 2001, p.76). A different company can buy or license the document to address the same problems thus creating a revenue source for the first company.
The research questions will be presented and seek answers to these questions: How does proper knowledge management improve profitability of the company and success of the company? What are the ideal skills and knowledge required and considered critical to profit and success of companies? What are the considerations on practices applicable to different levels of knowledge and skills in knowledge management? Moreover, what is the importance of proper knowledge management on economic [url=http://www.rtnagel.com/louboutin.php]louboutin[/url] challenges and competition in market share? The study is intended to take the approach and methodology of quantitative research design, which is a functional design in data analysis. This is because the attributes of the study are collected and analyzed in numerical terms. It is an ideal method because profitability and information databases are structured in numerical characters.
This study attempts to establish the association and causality of the two variables thus essential for this study. Knowledge management system entails collection of company organization, financial and operational framework of the company. It has the interaction of the products, customers, and skills of organizational employees. Companies are important institutions that entail routine functions and utilization of knowledge management system thus calls for exhaustive study to be done. The Engineering Change Order system is a formal process that is used in order to maintain and validate accurate knowledge in an enterprise The knowledge management system connects each database thus making collaboration between different departments a possibility.
For example, if the knowledge in the department of sales is documented and available in the system, another department can retrieve that knowledge and gain a better understanding of what procedures drive sales. Implementation of a knowledge [url=http://www.achbanker.com/homes.php]hollister france[/url] management system can be a detailed process that requires an extensive amount of time and resources to set the system in place. It [url=http://www.gotprintsigns.com/abercrombiepascher/‎]abercrombie soldes[/url] is relevant to create support for this new system from the top down in a company, which is the first step (Wright 2005, p.159). There could be a vital correlation of knowledge management systems and extend of productivity or profitability of the companies.