Their entire value chain is predicated on a very rapid, accurate flow of tacit and implicit knowledge throughout their manufacturing operations (Gunasekaran, Ngai, 2009). Dell's approach to product customization through their build-to-order supply chain is also based on an extensive knowledge management system that encompasses suppliers, product development teams, distributors and their extensive sales and service organization (Holweg, Pil, 2001)
Apple is also heavily reliant on their suppliers for the latest information to guide the next generation of iPads, iPods and iPhones. The myriad of data, information and intelligence that Apple relies on for new product introductions is commonplace across the high technology industry (Lynn, 1998)
The ever-increasing number of new model releases and the urgency for faster technical innovation has shown several weaknesses in the industry which is required to be surmounted. (Bollig, 2002) According to a survey the most identified are as follows: (i) Right First Time: Top class component quality and readiness in production from the beginning of a new model
The Total Cost of Ownership -- TCO continues to remain the single most important factor while buying a reality which restricts the amount of thriving innovations within the auto industry. (Dannenberg; Burgard, n
Innovation management is supported through the application of Innovation Management tools which are normally web-based and helps them to go beyond conventional geographic barriers. (Das; Puri, 2003) Innovation Management systems are also able to generate structured processes for evaluation and sharing ideas, such that decision makers are able to target those who possess the maximum potential
Small wonder then, the suppliers also play a bigger role as innovators. (Maurer; Dietz, 2004) Research suggests that particularly in the sphere of electronics and mechatronics, the supplier community will come to be the most important drivers of innovation in the industry
Basically, that system acquires information, establishes rules for sifting information, formats it within the appropriate context, assesses it and then transmits it to the leaders of an organization to use in making decisions (Snook and Wilker). Gallup-surveyed firms, which have been implementing knowledge management or KM, recognized its value and benefits in understanding and interpreting the market, evaluating customer requirements with a high degree of accuracy, and, by integrating these with organizational resources, determine what products and/or services to create and sell (Choi et al
It obtains information, sets business rules for sifting and formulating it, frames it within a comprehensible context, evaluates and then presents it to organization's leaders in rendering or enhancing a decision (Snook and Wilker). Although most companies viewed KM as strange and difficult to implement, more and more have come to recognize its value in providing real, verifiable and significant end-results (Craig 2000)
Its purpose is to find new and better ways of presenting its carefully gathered and stored information to its users (Walker and Millington). While e-business revolutionized business operations, it has not blended well with internal knowledge management (Fahey et al
Furthermore, it requires in-house expertise to implement the procedure (Craig). Experts also discovered the significance of the face-to-face aspect of managing knowledge in addition to technology (Overman 2003)
In order to be effective, the decisions must be actionable. Most of these come from a store of knowledge on the past decisions of previous managers and the consequences of those decisions (Pollock 2001)
Statement of the Problem This study will examine how knowledge management benefits businesses and the business community. It will answer the following questions: 1) What is knowledge management and what is its role in business? 2) How is organizational know-how measured? 3) How does knowledge management work as a two-way strategy? 4) What does knowledge management consist of and what are its requirements? 5) What is the role played by business intelligence in knowledge management? 6) Why should knowledge be e-business-focused? 7) What does knowledge management do that benefits business? 8) What does it require an organization in order to succeed? 9) What are the differences between organizations' actual and perceived success in knowledge management? 10) What is the function of special custodians? Findings Sources of know-how within an organization include customer capital, human capital, intellectual capital, relationship capital, and systems performance (Rylatt 2003)
). Business intelligence is part of KM and among the day-to-day efforts of the corporate knowledge worker (Walker and Millington 2003)
Managing that store of knowledge must serve the organization from within and those outside, such as clients, and therefore, must be a two-way strategy (Pollock). A system, which puts people, organizations, knowledge and processes together through technology, must be set up to allow these sectors to mix and exchange information and expertise (Snook and Wilker 2007)
Training and development would be directed in exploring how it could generate and use knowledge for business in the future (Ryatt). The sharing of knowledge is central to any knowledge management program (Woods 2001)
In completing an analysis of the knowledge management best practices in the automotive industry, several key concepts serve as the framework of this research effort. First and foremost, there is a growing recognition that the processes and approaches companies rely on for ensuring knowledge management transforms their and their supplier organizations is a lasting competitive advantage, and as a result the depth of academic research being completed in this area is expanding rapidly (Cohen & Levinthal, 1990; Teece et al
Third, the advent of voluntary learning teams and the development of problem solving teams as part of the Quality Assurance Division (QAD) specifically within Toyota set the foundation for knowledge management and the development of learning systems on a broader, more long-term scale. Fourth, the role of interfirm employee transfers, not so much practiced in westernized nations, but prevalent in Japan for both ensuring employment in the same industry and most importantly, the same supply chain, has a secondary effect of promoting stronger knowledge management integration strategies (Lincoln et al
, 1996; Dyer and Singh, 1996). Taking this network concept as the foundation of comparative analysis of innovation, it becomes clear that scholars are finding that the greater the level of integration between suppliers, manufacturers, customers, and channel partners, the greater the levels of innovation present in each organizations' products, processes, and services (Levinson & Asahi, 1996; March & Simon, 1958:188; Powell et
Note that this framework also includes support for Expert Network and Learning Management applications to also increase the level of best practices attainment in knowledge management. Figure 2: Knowledge Management Framework Source: (Murphy 4) Potential Future The implications of ECM frameworks specifically being created for the purpose of supporting knowledge management strategies must first begin at a very process-centric level, where the many sources of content and knowledge are aligned to organizational objectives
In short, best practices in automotive industry knowledge management arena is now exemplified by the development of networks of companies that learn from each other and from the many collaboration requirements of making their value chains work. Scholars have begun to move away from the specific firm or manufacturer as the center of analysis and expanding the focus of research to include the network of companies and their accumulated learning both from each other and from the tasks of ensuring collaboration (Powell et al