KNOWLEDGE MANAGEMENT AS A SUCCESS FACTOR - RETHINK, REFORMULATE AND REPRACTICE

The current world of the new economy is different from the former operating environment of the old economy chimney industry. Intangible factors of production - know-how, knowledge, people, brands and patents - have replaced tangible factors of production - machinery, buildings and heavy infrastructure - in many areas of business and the public sector. Digital technology has penetrated everywhere in business and public service activities. There has been a shift from production-oriented In-Out thinking to a world of customer-oriented Out-In business models. Leadership skills, good leadership, and leadership are genuine strategic success factors for many companies and public organizations. Customers determine the success of a company and a public sector organization. Customer Insight and CRM, customer understanding through knowledge, is one of the cornerstones of success in the new economic world. Customers are differentiating and their customer behavior needs to be understood, influenced and anticipated. At the same time, it must be productively and functionally efficient. Lean, SCM, ERP and Smart Factory. How are these things in our organization?

Knowledge, its production, analysis and utilization, has become key factors in successful decision-making and management. If you want to succeed, invest in producing, analyzing, and leveraging information in decision-making. This could be a good digital age room board for managers and supervisors on the walls. The differences in the success of companies and public organizations are increasingly explained by the ability to manage these organizations with the help of information.

Knowledge, its production, analysis and utilization, has become key factors in successful decision-making and management.

Rethink!

It is a good idea for management to pause to evaluate the current approach, strategy and its practical applications. It is also necessary to assess the state of knowledge management in the organization. Which things are okay and where there is a need for improvement. It is good to question old ways of working and the production and use of information systems information in decision-making. Unprejudiced thinking and comparison with industry best knowledge management practices is needed. Self-assessment is part of good leadership. Also with knowledge in the management area.

 


Reformulate!

As a result of one's own assessment of knowledge management, guidelines are created for reorienting and developing knowledge management to support management. Knowledge of the management's strategic guidelines and their practical export is generated here. However, you must first perform knowledge management in Rethinking. Management must invest its own working time in it. It is mostly an excellent investment, although on company management desks, investments in machinery, equipment and construction are the most concrete, and also experienced in the past, still seem to be mainstream in investment budgets. However, the fact that the growing importance of innovative business models and related information management is becoming a real competitive advantage will highlight management-intensive investments in information systems, analytics and new types of management reporting from the past to forward-looking statements, from descriptions to analysis and from simple financial reporting to strategic management.

Staff must also be trained to use knowledge management in their own operations. In fact, the ability to build and leverage knowledge management can be a competitive advantage for a company in companies and public organizations.

Invest in knowledge management! It is a good investment and a strong cornerstone of success!

Repractice!

Good information systems and the information they produce and utilize in decision-making require that the company's management and all personnel have a clear understanding of how each utilizes information management in their respective tasks. A well-functioning management system - clear decision-making bodies and their roles, individuals' own areas of responsibility, management information systems and a corporate culture that supports development and growth are ultimately the factors that integrate knowledge management into everyday operations. Knowledge management success is measured by success in the customer interface.

One old management piece of advice that also fits well with the digital world of the new economy is that the success of a company or public organization is built on strategic capability, operational efficiency, and engaging people in reforming and developing operations. This is also true when developing knowledge management. There must be a strategic understanding, be able to achieve operational effectiveness through information management, and the entire organization must be involved in understanding the importance of information management for success.

Invest in knowledge management! It is a good investment and a strong cornerstone of success!

Author
Kari Neilimo
Kari Neilimo
The Finnish honorary title of vuorineuvos, Doctor of Economics
Tags
knowledge management Success factors Rethink Reformulate Repractice A key factor Staff Strategy
Published
05/06/2020