Knowledge Management Systems in Small Business
In
recent decades the topic of knowledge management (KM) has gained significant
momentum in the business environment. Knowledge management has been undertaken
by a variety of firms, typically a KM process involves: knowledge capture;
knowledge organizing and knowledge storage; knowledge distribution; knowledge
sharing. [1] A successful KM results when virtually all the knowledge within
the business is harnessed, and used as part of the company's core business and
competitive intelligence strategy. The purpose of this post will be to explore
how small businesses use information systems to be successful.
Small
businesses did do not overtly think about KM. It was often perceived as a
resource and time intensive endeavor. However, KM enables businesses to
be more effective by reducing training time, having better understood processes
and procedures, and by providing better analytics. The cost of KM has
reduced significantly with the creation of a range of software such as Wikis
(MediaWiki, Confluence), Document Repositories (DSpace, AjaXplorer), Project
Management Software (Redmine, eGroupWare), Customer Relationship Management
(SugarCRM, vTiger) and ERP (OpenERP, webERP) Software can help with knowledge
management. [2]
An
example of a small business that has incorporated KM is the CPA firm Miller,
Walker, & Thompson, LLP (MWT). Miller, Walker, & Thompson, LLP is a
regional accounting firm that specializes in the services of attestation and
assurance (A&A), tax compliance, general business consulting, and basic
accounting services. The firm participates in industries, such as construction,
manufacturing, multi-family housing real estate, and non-profit. The firm
operates in Indianapolis, Indiana and employs nearly 50 employees. There KM
system is broken down into 6 steps. First
the firm acquires knowledge through formal training, education, research, and
also from professional experience in the field. The next step is to add value
to this knowledge. Information and knowledge acquired from external sources is
collected within the firm and analyzed by the firm's employees. Value is added
when knowledge and information can be utilized within the firm to benefit or
improve its operations. Next, value-added knowledge should be integrated within
the firm's practices and stored for future use. Then, employees use stored
knowledge within the firm in order to provide the highest quality of work to
clients. Clients also they contribute to a firm's acquisition of knowledge.
Finally, professionals learn from experience and resources, which enables them
to distinguish value to add to information and produce best practices for
clients. [3]
“Business
intelligence practitioners worldwide generally agree that in this
knowledge-driven global economy, knowledge itself is a commodity that offers
the only sustainable competitive edge”. [1] It is obvious that the smaller-sized company need to
capture and strategically use its knowledge. Smaller-sized companies need
knowledge management for virtually the same reasons that larger ones do. There is
more competition in today’s markets, which puts great pressure on companies,
large and small, to innovate and to develop products rapidly. It is important
for any business to use any resource possible to get an advantage and knowledge
can be a secret weapon.
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