Key factors influencing business prospects for SMEs: Cost of doing business Business sentiment Consumer confidence Consumer spending * Survey on SMEs, 2012
The 3 main measures undertook: Product or service improvement (69%) Process improvement (47%) Up usage of machinery and equipment (36%)
The Challenge The ability to store, capture, and distribute knowledge within and across organizational boundaries
Knowledge and Knowledge Management are strategic advantages
Low-Cost Strategies: Knowledge used to cut costs, lower prices, and shorten cycle times
Differentiation Strategies: Knowledge adds value to a product giving its unique characteristics
Significant competitive advantage over competitors through: Knowledge Management in the process of acquisition, retention, maintenance, and retrieval of knowledge within a SME
Avoid: Knowledge that is isolated in one department or in a specific segment of the value chain is not utilized to its full extent.
The quest to innovate – essential for SMEs to remain ahead of competitors. Acquisition of new knowledge – is a way to gain and maintain competitive advantage
New Knowledge: Should be properly managed Through internal knowledge management systems Create learning opportunities for other departments
2 types of knowledge management systems for renewing competitive advantage
1. Passive Knowledge Management systems Eg EDI system Orientation on the “present” Tend to be used with channel members eg schedule component deliveries, reduce cycle time, cut inventories
2. Active knowledge management systems “Future orientation" Anticipates future buyer/seller behavior (e.g. market back R&D).
Proactive knowledge management systems: 1. Enhance efficiency through time and cost savings. 2. Link “voice of the consumer” to all stages of product development, production and distribution through the value chain
Internal and external knowledge management systems give greater competitive advantage
Possible challenges in implementing Knowledge Management in SMEs Time for development actions. Culture, motivation of staff, and ability of the management team to share ideas and discuss strategic issues. No sufficient manpower to lead and execute knowledge management throughout the organizations.
However difficult, set up your Knowledge Management System and share with your team
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