Thursday, 3 November 2016

Knowledge creation to speed the conversion of ideas into market ready enterprises.

Businesses of yesteryears used to be located near availability of raw materials or capital. Not any more. In today’s world they are flowing to the epicentres of knowledge. A company’s potential is assessed on their  knowledge creating capability. Capital is going to the areas where knowledge is available to create new business products and new services.

The ability to create new knowledge is often at the core of the organization's competitive advantage. 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. As defined by Ikujiro Nonaka, knowledge creating process consists of socialization, externalization, combination, and internalization.

In today’s cutthroat business world, innovation is said to be the key factor that is driving an organization’s value and competition with rivals. Organizations requires input of knowledge to create new products/services, processes, technologies, and managerial systems. Knowledge management (KM) can play a huge role in producing the source of knowledge that is integral to support innovation. It is hence important that you adopt knowledge management strategies that support radical innovation giving you the added advantage.

Knowledge creation process need not limit itself to within the organization. New knowledge acquired from outside the organization about customers, their habits, needs and preferences can enable you to improve your products as well as marketing strategies. Conference and seminars help in bringing new learning to the organization and sharing the expertise with one another. It encourages partnership and collaboration with other organizations to develop new products and services. Academicians and technocrats can join hands to share knowledge to develop or improve existing or new process.

Explicit information and data can be easily understood and shared as it can be quantified and stored. There are tools and skills that manage these type of business information. However, it is not in this type of data that the advantage of an organisation lies in. An organization's true asset is in the knowledge which is found in individuals and their communities. Using the right KM strategy, practicing the relevant leadership behaviours and cultivating organizational learning culture can help you in effectively managing this intrinsic knowledge of the people.

Without a doubt, better management of knowledge within a business will lead to improved innovation and competitive advantage. Knowledge creation is today perceived as one of the major assets of an organization. New knowledge created, on its own or in combination with previously established knowledge can provide a strong foundation for continuous improvement of a your organizations’ processes, products and services.

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