In the context of entrepreneurship, knowledge can be defined as ideas, concepts, or observations that are used to take action for profit.
Data itself is just a fact that has no meaning without interpretation. Only after it has been processed and organized does it become information that answers the questions like: Who? What? Where? When? In turn, explaining and understanding the information we receive gives us the knowledge we need to make decisions.
Knowledge is an invaluable part of a company’s business strategy because it can create a competitive advantage. It is important to identify weaknesses and knowledge gaps.
No matter what you’re doing, it’s a good idea to have a plan of action. Running a business is no different. A strategy allows you to realize your company’s mission and goals by specifying the direction and type of actions you need to take. Effective knowledge management in an organization makes it easier to capture, share and put knowledge to work.
Some of the most common strategies used in practice are codification and personalization. In addition, they are connected to the concepts of formal (explicit) and tacit (implicit) knowledge.
The codification strategy is based on formal knowledge stored in corporate documentation – technical specifications, training materials, reports, analyses, etc. This form greatly facilitates the transfer of knowledge to new and existing employees.
The personalization strategy, on the other hand, is based on interpersonal contact between employees and the exchange of experiences between them. In this case, sharing so-called tacit knowledge takes place during team meetings, conversations, discussions, etc.
Running a business is a demanding task due to the high dynamics of change and the need for constant development. This can be especially challenging for small and medium-sized businesses whose reach and resources are significantly limited.
The contribution of the SME sector to economic growth is substantial. Small and medium-sized enterprises are often a source of innovative solutions and diversify the market. They have a simplified organizational structure and usually offer niche products and services.
The capital used to develop the business usually comes from the owners’ savings, bank loans, or sometimes from private investors, such as business angels. They employ a relatively small number of people (small companies – no more than 50 employees, medium-sized companies – between 50 and 250 employees) so that they can maintain a close relationship with management and identify with the company’s goals.
Authority is centralized – most decisions are made solely on the basis of the owner’s opinion and experience. Overseeing all areas of the business in this way carries risks – the future of the business depends on the owner’s competence, some areas of management may operate inefficiently, and the intellectual potential of employees may go unnoticed.
Making changes takes time and effort. Putting a knowledge management strategy into practice depends a lot on the attitude of management and employees. However, it is necessary for the development and growth of your company’s potential. How can you benefit from making some changes in your management style?
If you don’t know what success factors are, read this article. Again, there are several organizational characteristics that can significantly facilitate introducing positive changes in strategic knowledge management. These include:
Changing habits takes time and effort as there are several obstacles in the way. Knowing in advance the limitations that may arise during this process will make it easier for you to deal with them. Here are some possible issues that will require your attention:
In fact, implementing a knowledge management system can be challenging for business owners. Lack of information and inexperience can be daunting at first. However, the added value you can gain is well worth it. Keeping the following tips in mind will make it easier for you to successfully complete the process:
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Author: Andy Nichols
A problem solver with 5 different degrees and endless reserves of motivation. This makes him a perfect Business Owner & Manager. When searching for employees and partners, openness and curiosity of the world are qualities he values the most.
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