Knowledge Management Creation Process

The ability to create new knowledge is often at the heart of the organization's competitive advantage. Sometimes this issue is not treated as part of knowledge management since it borders and overlaps with innovation management. Since I chose a broader knowledge management definition, I very much regard it as a part of the process, and I will refer (albeit superficially) to some theories that pertain to innovation. Knowledge creation according to the Nonaka's SECI model is about continuous transfer, combination, and conversion of the different types of knowledge, as users practice, interact, and learn. Landray Management Consulting Support System distinguish between knowledge and knowing, and suggest that knowledge creation is a product of the interplay between them. The shift in condition between the possession of knowledge and the act of knowing - something that comes about through practice, action, and interaction- is the driving force in the creation of new knowledge. Furthermore, in order for this interplay to be most fruitful, the organisation supports unstructured work environments in areas where creativity and innovation are important. Knowledge sharing and knowledge creation thus go hand in hand. Knowledge is created at Landray Management Consulting Support System through practice, collaboration, interaction, and education, as the different knowledge types are shared and converted. Beyond this, knowledge creation is also supported by relevant information and data which improve decisions and serve as building blocks in the creation of new knowledge. Managing Knowledge Creation The role of knowledge creation process at Landray Management Consulting Support System is as followed: To enable and encourage knowledge sharing: On the tactical side, as described in the previous subsection, the organisation`s management understands where and in what

forms knowledge exists. They then provide the right forums for knowledge to be shared. For tacit knowledge this implies a particular emphasis on informal communication, while for explicit knowledge this implies a focus on a variety of IT systems. On the strategic side, the management department creates the right environments, processes, and systems that provide the means and willingness for it to take place. To create a suitable work environment: This includes the notion of creating an interplay between knowledge and knowing. It implies offering relevant courses and education to the firm`s employees, but most importantly allowing new knowledge to be created through interaction, practice, and experimentation. Landray consideres the importance of shared experiences in the knowledge creation process when dealing with tacit knowledge, and the need for an environment where these can be formed. The organisation advocates environments where goals are created through action, where intuition is accepted and valued, and where experience is nothing more than a theory. These concepts bring us back to the concept of theory in use (referring to work environments that do not follow strict, "official" rules and procedures), and the acceptance and support of environments that allow brainstorming, trial and error, and unstructured interaction. As an example is the establishing of teams to solve problems, unhindered by the bureaucracy that may exist in the firm. This refers to the value of chaos and the advantage of smaller, fast-acting teams. One common alternative is the use of crossfunctional project teams. This is a group of experts from different parts of the organization, led by a "generalist" project leader. This team is allowed the freedom to experiment and work in an autonomous, or virtually autonomous environment, and it is a great catalyst for innovation and new knowledge creation. Then, once the task is complete, the members return to their role in the organization, helping to spread this knowledge back into their own community of practice. The project team itself can also facilitate the creation of bridges between communities of practice, and at times may even serve as a way to extend them. To provide systems that support the work process: These are groupware systems that facilitate communication or brainstorming.

To provide knowledge workers with timely, relevant information and data. In today's fast paced environment this is virtually synonymous with the implementation of IT systems which store, retrieve, organize, and present information and data in a helpful way. IT and Knowledge Creation The use of IT is very much the same as it is for knowledge sharing, allowing for some degree of support in the transfer of all knowledge types. One important aspect is that it must support, and not interfere with, informal collaboration. For example, groupware systems are used in the organisation to enhance communication between communities or teams, particularly if they support varied (e.g. video, audio, text - according to the needs of the individual firm), informal communication. Apart from this, IT also has an important role through information management, by providing access to data and information, and allowing the manager to perform indepth analyses. More than that, IT systems is also programmed to spot trends in data and information and present that to the manager. This essentially enables the manager to make better decisions and aids knowledge creation by providing some of the building blocks for new knowledge. IT tools are also used in the innovation process (e.g. tools used in the actual product design). Intellectual Capital Statement Intellectual capital is normally classified as follows: Human capital, the value that the employees of a business provide through the application of skills, know how and expertise. Human capital is an organizations combined human capability for solving business problems. Human capital is inherent in people and cannot be owned by an organization. Therefore, human capital can leave an organization when people leave. Human capital also encompasses how effectively an organization uses its people resources as measured by creativity and innovation.

In the organization the management saw the necessity for engaging in knowledge management and developing a human capital strategy. The human capital of the organization is defined as the organizations community . Knowledge management was designed as one of the key pillars of the organizations human capital strategy. The central components of the firm`s knowledge management strategy were built around people/culture, process, and technology. Specifically, the organization developed approaches to build and nurture a knowledge sharing culture (people/culture), systematically capture critical knowledge (process), and creating a unified knowledge network for facilitating knowledge sharing (technology). Landray believes that for knowledge management to succeed, it must be linked with the human capital strategy of the organization. A Human Capital Working Group was formed in the organization, and knowledge management was introduced as being an essential part of the strategic management of human capital. Structural capital, the supportive infrastructure, processes and databases of the organisation that enable human capital to function. Structural capital includes such traditional things as buildings, hardware, software, processes, patents, and trademarks. In addition, structural capital includes such things as the organizations image, organization, information system, and proprietary databases. Because of its diverse components, structural capital can be classified further into organization, process and innovation capital. Organizational capital includes the organization philosophy and systems for leveraging the organizations capability. Process capital includes the techniques, procedures, and programs that implement and enhance the delivery of goods and services. Innovation capital includes intellectual properties such as patents, trademarks and copyrights, and intangible assets. Intellectual properties are protected commercial rights such as copyrights and trademarks. Intangible assets are all of the other talents and theory by which an organization is run. Relational capital, consisting of such as customer relationships, supplier relationships, licences, and franchises. The notion that customer capital is separate from human and structural capital indicates its central importance to an organizations worth.

Conclusions In conclusion, knowledge creation depends upon the mechanisms described in the subsection on knowledge sharing, combined with the ability to put knowledge into practice in an environment which supports interaction and experimentation. The creative process is a delicate one, and it is easily ruined by strict adherence to rules and regulations, or by bureaucracy. Similarly IT systems must be implemented with care (as discussed above), and not attempt to replace processes vital to knowledge creation. Knowledge management model is a pivotal issue for an enterprise to implement knowledge management effectively. This study establishes a general model of knowledge management from the perspective of organizational competitive advantages to manage organizational assets and organizational knowledge activities through promotion processes of knowledge management on basis of organizational culture and information technology in order to obtain the organizational competitive advantages. Landray establishes the wheel of knowledge, and the revolving loop of knowledge acquisition, knowledge integration, knowledge storage, knowledge sharing, knowledge transfer, knowledge application and knowledge innovation, etc. is impelled by the means of management and technology based on corporate culture, information technology, promotion processes of enterprise knowledge management to gain competitive advantages for the enterprise. Landray knowledge management solution consists of unified data service layer, core service layer, KM application layer and portal access, and its major functions are knowledge management, talent management, business roadmap gallery and knowledge management support tools.

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