Importance and Impact of Knowledge Management System

This study discusses the importance and impact of knowledge management system in organizations. It explores the role of governance in knowledge management and its effects on decision-making and service improvement. The study also highlights the benefits of adopting and implementing governance for knowledge management.

BUS5KMS –
KNOWLEDGE
MANAGEMENT
SYSTEMS

Table Of Contents
Abstract..........................................................................................................................3
Introduction....................................................................................................................4
Literature Review...........................................................................................................4
Review Of The Knowledge Management System.........................................................6
Discussion......................................................................................................................8
Conclusion......................................................................................................................9
Reference List..............................................................................................................11
Abstract
The present study discusses the importance and impact of knowledge management
system. Knowledge management enables an organisation to effectively make decision
and improves the services of the organisation in the best possible manner. Role played
by the governance of Knowledge Management within the organization has enabled
the organization to create a requisite balance in between the technology, people, and
processes associated with the Knowledge Management Strategy. Governance of
Knowledge Management in STDO has included the authority, risk management,
organizational culture, strategic development, and evaluation and measurement under
an executive framework for the deployment of Knowledge Management. Finally, the
report suggests for the fact that adoption and implementation of governance for
Knowledge Management have brought about changes in the Knowledge Management
strategy for the organization and has enabled the organization to strive towards the
attainment of competitive advantage within the market.

Introduction
In the modern day business environment knowledge is one of the major aspects that
contributes to the growth and development of an organisation. Effective
implementation of knowledge allows organisations to drive the business forward even
in the most competitive situation. This clearly shows that knowledge largely helps to
achieve competitive advantage in the market hence, the present global business
scenario there is an emerging line of system that is being presently adopted and
mainly focuses on the managerial and professional activities within the organization
(Pemsel, et al. 2016). The main focus thereby remains on creation, gathering,
organizing, analysing, and disseminating various pieces of knowledge within the
overall organization’s knowledge rather than depending on data and information. This
is referred to as knowledge management and focuses on understanding, knowledge,
wisdom and thereby encouraging by the means of creation of processes, environment,
culture, etc. In a manner that allows the creation and sharing of knowledge and is
basically based on the tactic elements that are pretty hard to be copied (Dayan, et al.
2017).
The present study will deal with the case study of STDO and discuss the aspect of
governance of KM and thereby relate that to the KM tools, KM techniques, KM
processes, KM models, and communities of practice, creation of new knowledge
within the organization and various other aspects of knowledge management within
the organization.
Literature Review
Upon the realization of the effectiveness and importance of the strategic role that can
be played by knowledge regarding the optimized functioning of the business
organizations the attempt of the present day’s business organizations have remained
inclined towards the leverage of their knowledge base for bringing the enhancement
in their performances (Hislop, et al. 2018). With the increasing relevance of this
overall approach for the enhancement of business operations Knowledge Management
in the present business world maintains the standard of being recognized as an
effective and influential business approach that make the requisite use of
technological aspects. But, as found in the studies of Asrar-ul-Haq and Anwar (2016),
for the effective deployment of Knowledge Management within an organization it is

very much essential that a suitable and purposeful Knowledge Management strategy
is developed within the organization. This will enable the organization to make the
requisite identification of the specific areas where knowledge can be critical and
accordingly set up the tools, techniques, procedures, etc. That can most optimally
leverage the knowledge within the organization. Thus the selection of an effective
Knowledge Management strategy is very much essential for ensuring the effective
performance and attaining the strategic benefit of knowledge leverage for the
attainment of the planned organizational goals.
According to Donate and de Pablo (2015), effective governance of Knowledge
Management can ensure the organization to accrue the requisite strategic benefits.
Studies of Inkinen (2016), suggests that effective governance of the knowledge
management within a business organization can serve to be the specific strategic
context that can elaborate the existing link in between the Knowledge Management
strategy adopted by the organization and the effectiveness of the implementation of
the strategy. However, the study also considers the governance of the Knowledge
Management to include the risk management, authority, responsibility, evaluation and
measurement. Effective Knowledge Management governance retains the capability of
ensuring the delivery of the strategic benefits of adoption and implementation of
knowledge management by means of the requisite leadership, feedback generation,
and risk mitigation mechanisms.
In the view of Omotayo (2015), governance of knowledge management can
successfully explain the structure and processes that has been adopted within the
organization and thereby provide adequate aid regarding the coordination activities
that has been adopted for the deployment of Knowledge Management within the
organization. Leadership, mechanisms amongst the various stakeholders of the
business, organizational culture and structure are the core themes of governance that
are considered to be effective under this conceptualization (North and Kumta, 2018).
Leadership in this regards is the characteristics that has been adopted that emphasizes
guiding, motivating others to maintain the organizational strategy for providing
support to the value proposition within the organization. In this aspect the presence of
governance will ensure that the rules and policies that have been adopted are subject
to enhanced and effective practices.

The studies of Wenger-Trayner (2017), also suggests the organizational culture to be
an essential factor that will define the overall performance offered by the Knowledge
Management system within an organization. The culture adopted within the
organization can have the ability to foster the positive climate regarding enhancing
collaboration within the organization and attainment of the tasks.
Also, Younis (2017), mentions in his study that the effectiveness of the governance of
Knowledge Management ensures that the overall KM system within an organization
has the ability to meet the anticipated and desired performance. The study defines the
governance of the Knowledge Management to be the attempt that can check if the
performance and practice of knowledge management within an organization can
enable the same to either match or exceed the objectives and standards that has been
predefined within the organization. Thus the effective Knowledge Management
governance within an organization will emphasize more on the standards that has
been implemented regarding the Knowledge Management initiative and the quality of
performance that has been attained as a result of that initiative (Tan, et al. 2018). Thus
for the effective performance from the end of the business organizations it is very
much essential to ensure the governance of Knowledge Management within the
organization in a manner that they can achieve the performance standards that were
earlier set by the business organization as their long term or short term goal.
The studies of Jarvenpaa and Tanriverdi (2018), reveal the role of IT in the
effectiveness of Knowledge Management within the business organizations. The
study mentions that previously the It was considered to be the sole driver of the entire
process and system of Knowledge Management within the organization. But it has
also been found that a numerous Knowledge Management project have failed to
deliver the requisite results and benefits by solely depending on IT as the driver of the
knowledge management within their respective organizations. This made the
emergence of the factor of social human behaviour to take part in the system along
with IT to accrue the requisite benefit from the system. Since then, the IT applications
enhance the development of the social capital within the organization. The groupware,
collaboration software, discussion forums, virtual communities etc. have been the IT
applications that are present within the organizations to enhance learning,
development, innovation, and knowledge creation within the socio-technical systems
of the organizations.

Review Of The Knowledge Management System
STDO as mentioned in the case study are very huge disbursed organizations where
Knowledge Management operates at all the sites. The public service regulations have
been monitoring the work structure that has been applying the participative tasks. It
has been thought that the presence and initiation of Knowledge Management
governance within the organizations will inhibit the overall performance,
infrastructure, and cultural management. This ended up with the creation of a Steering
committee comprising of the global key stakeholders on a trial basis. But this
committee has served to be a truly powerful group. The authority that has been
created in this context has made the effective use and engagement of the Steering
Group (comprising of the global key stakeholders).
The organization started a bottom up approach has been adopted by the new
governance mechanism of knowledge management within the organization. This has
enabled the board to provide for the knowledge management leadership and state the
strategic direction to be chosen by the people within the organization. They also chose
the appropriate strategies and technologies that could add the competitive advantage
to the businesses. However, while these were determined for the organization, the risk
assessment was also accordingly taken into account. For the successful results of the
Knowledge Management strategy the presence and effective participation of the users
was also needed to be maintained. The monitoring and implementation of the
Knowledge Management was based on top-down approach at the distinct other offices
at the various locations. Thus the effect of the adoption of the governance for
Knowledge Management was found in the offices of the distinct locations in more or
less equal manner.
The redesigning and development of the Intranet has been a result of the research and
development and innovations taking place within the organization due to the
creativity of the employees. This has enabled the STDO news to be online and
develop for the organizational yellow pages and enhancing the collaboration in
between the clients, employees, and the other vital stakeholders for the business.
The qualitative and quantitative surveys within the organization provide a measure for
the effectiveness of the Knowledge Management by means of some internal research
mechanisms. Some selected metrics has been considered for the period prior to 2001

(while the governance was not adopted) and compared with that for the period after
October 2003 depending on the usage patterns. This has determined for what are the
supports that the company needs to provide to the employees that can further enhance
their performance for the enhancement of the strategic benefits from the Knowledge
Management. It was found that with the use of functioning of the Knowledge
Management governance it was found that there was an empowerment in the practices
at the organizational level, enhancement and positive fostering of the organizational
culture that motivated the employees. This also adequately have developed for the
interconnection amongst the various resources possessed by the organization and
thereby have increased the capability and promoted innovation of the organization
leading to development of overall performance as well as accruing fiscal benefits.
Discussion
The occurrence of Knowledge Management in STDO has effectively revealed for the
fact that the introduction of Knowledge Management have enabled the organization to
make the adequate realization of the benefits that can be accrued upon the
implementation of Knowledge Management. The domains of governance that are
described within the case includes risk management, authority, leadership,
Information Management and Knowledge Management plan, evaluation and
measurement that fits for providing adequate support to the Knowledge management
strategies upon their adaptation by the organizations. Earlier the Knowledge
Management governance was adopted in a manner that ensured the employees
contributed to the Knowledge Management system in an effective manner. But upon
the adoption of the new enhanced governance of knowledge management there has
been a shift in the entire paradigm and emphasis was laid on the development of
interconnection in between the various people and resources within the organizations,
and also the development of connection in between the distinct human resources
within the organizations. This has revealed for the emerging nature of the knowledge
Management governance of the present days in adoption of the changes brought about
by the Knowledge Management strategies (Dayan, et al. 2017).
Thus the adoption of the governance of knowledge management has enabled within
the organizations the development of the enhanced communication within the
organization and have provided for the platform where the effective balance in
between the technology, people, and processes could be maintained. The structure of

the new system will be such that the Knowledge Management Governance Board will
plan for and adopt the Knowledge Management Strategy and that will further go
ahead for the Knowledge Management implementation. The components of the
organizations were assigned the tasks according to their capabilities and proficiencies
so that the tasks could be performed in a tactful and strategic manner harnessing the
knowledge base possessed by the resources (Obeidat, et al. 2016). As a result of that
and the continuous education initiative taken by the organization for the enhancement
of the learning projects, the five year induction programme that has been set for the
newly employed staffs within the organization has fostered the organizational culture
and enhanced the entire manner in which the various tasks are being performed. This
has also motivated and enhanced the Hubs to perform proactive functioning for the
IMKM board.
This has also enabled the inclusion of the human resources within the teams who have
enhanced communication skills. This has enhanced the sells of projects and
attainment of support and aid from the senior management. The IT has also played a
supportive role in the development and adoption of the governance for Knowledge
management. This has enabled the redesigning of the Intranet and has provided for a
uniform design across all the locations of STDO. This has also enabled the STDO
NEWS to be online and development of the record management systems. Thus the IT
has enabled the development of the connection in between the business strategy as
well as the Knowledge Management strategy. This has also enabled the organizations
to find the accurate and exact balance in between the human as well as the
technological aspects.
The strategic benefits that has been brought to the business by the adoption of this
Knowledge Management governance has enabled the human resources to develop the
realization that the pieces of information that they are providing from their end and
sharing for the organizational purposes can be beneficial for the others (Wang, et al.
2016). This has also led the people associated with STDO to think about the process
of Knowledge Management. People are now collectively as well as individually
motivated to the point that they are providing enhanced focus on the specific areas of
their own expertise and sharing the same with other so that it can be of help for the
others. Also the implementation of governance for the Knowledge Management in

STDO has enabled the organizations to accrue financial benefits and made itself
fiscally viable.
Conclusion
Thus in the case study we can find that the adoption and implementation of the
governance to the Knowledge Management strategy has paved the success for the
organizations and brought about the timeliness regarding delivery of their services to
the clients and customers. This has caused the satisfaction of the stakeholders and
thereby has enhanced the business performance as a whole. Thus in STDO, the
governance of Knowledge Management system including the domains of authority,
organizational culture, strategic development, risk management, evaluation and
measurement has proved itself to be very vital for the organization ensuring the
provision of the Knowledge Management strategic benefits. This has thereby enabled
the organization to promote innovation by the means of business collaboration and the
governance mechanisms have fitted well for the development of a well maintained
balance in between the technology and people.

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