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Knowledge Management and E-Commerce Organization

Question:

Discuss about the Knowledge Management and E-Commerce Organization.

Answer:

Introduction:

Knowledge management is the systematic business process with the help of which the business managers can create, share, use and manage the necessary knowledge and information regarding the business process within an organization. Knowledge management is the particular procedure based on which both the managers from various departments tend to evaluate the rate of knowledge among the new employees as well as the existing employees (Aggestam, 2015). The primary purpose of knowledge management is to enhance the employee performance, to maintain a psychological balance among the employees, to increase the rate of competitive advantages and so many. In order to run a business organization successfully, the role of employee performance is highly important. Employees would be able to perform well only when the business managers would be able to maintain an equal balance among the employees. Therefore, the knowledge managers intend to share the business information among each other for providing an effective service process to the customers.

Electronic commerce is the systematic networking process with the help of which business organizations are able to sell their products and services through online transaction. People from various cultures and backgrounds from different geographical boundaries can purchase products and services (Becerra-Fernandez & Sabherwal, 2014). Therefore, the organization would be able to enhance their range of customers. Apple has been chosen as the selected company for this particular study. The business managers of Apple tend to select knowledge management strategy within their business process in order to increase the performance of employees, to maintain an effective communication among the employees and the customers (apple.com, 2017). 

Knowledge management is constituted with two primary types that imply tacit knowledge and explicit knowledge. Apple primary tends to use tacit knowledge due to several reasons. Tacit knowledge is the systematic process with the help of which the business experts can transmit knowledge and information by providing an effective training (Dent & Whitehead, 2013). On the other hand, tacit knowledge enables the employees for gaining knowledge by experience as well. Apple’s business managers always focus to provide professional training to their employees in order to fulfill the needs and demands of the customers and to create market demand.

On the other hand, explicit knowledge management is the process with the help of which the employees get the opportunities to gather knowledge and understanding with the gradual progress of their service process (Fuller, 2012). While providing services to the customers, employees have to face innumerable challenges at the workplace. From those feedbacks gathered from the customers, the employees gain innovative knowledge and experience that helps to enhance the performance level of organizational employees.

The business experts of Apple have decided to use tacit knowledge due to several reasons in their e-commerce business process. In order to operate the e-commerce business, the employees should have proper training and efficiency towards business.  That is one of the most effective reasons of using tacit knowledge for Apple. Before involving an individual employee within the e-commerce business process, Apple tends to provide an effective training to the employees in order to enhance their knowledge, skills so that the employees can be made more professional towards the entire business process (Groff & Jones, 2012). Therefore, the communication between the customers and employees become stronger and effective. Customers on the other hand, do not have to wait for a long time in order to use the products as well as service process of Apple.

Impact of knowledge management and e-commerce on business organizations:

The emergence of e-commerce business process is successfully able to drag the customers from different geographical boundaries. The realm of electronic business process is vast and wide. People from different corners get the opportunity to use the products and services sitting at their drawing room (Hislop, 2013). After launching the e-commerce business Apple has occupied a predominant place in the domain of international market. People from different areas can easily use the products and services of Apple within the help of online transaction. As a result, people do not have to visit the organization directly for purchasing products and services.

The entire service procedure can be maintained systematically with the help of knowledge management process:

Knowledge management helps to maintain an equal balance among organizational employees. By implementing tacit knowledge management within the business organization, the business experts of Apple tend to provide effective training process to the employees for enhancing their skills and knowledge. As a result, employees do not have to face organizational barriers such as communication barriers, cultural barriers and psychological barriers at the workplace (Holsapple, 2013). Every employee within the organization is treated with equal respect and dignity. Employees tend to find motivational spirit for performing well for the organization. After receiving a professional training, the employees ted to maintain organizational culture and discipline at the workplace (Liebowitz & Frank, 2016). Apple has achieved immense recognition in the international market due to their systematic organizational cultures. This culture has a major effect on customers as well.

Service providers do not get the opportunity to collect direct feedback from the customers:

The primary advantage of e-commerce business process is that the Service providers do not get the opportunity to collect direct feedback from the customers. The service providers have to be dependent on the telecommunication or communication with the help of new media. As a result, the business experts fail to collect a direct feedback from the customers. Therefore, business managers of Apple have to face immense difficulties while forming new business strategies and policies (Marra, Ho & Edwards, 2012). Therefore, people from different geographical boundaries have to communicate with the service providers of Apple through digital media instead of personal selling process to provide necessary feedback about their products and services.

High level of efficiency is needed in order to implement knowledge management process at the workplace:

The implementation of knowledge management within a particular business organization is a matter of serious concern for any business experts. Before implementing any specific knowledge management theory, the business experts have to gain in-depth knowledge and idea. Otherwise, the business managers would like to take wrong decision regarding the business process (Noruzy et al. 2013). As a result, business organizations have to go through innumerable risk factors to maintain image and reputation. After the implementation of tacit knowledge management, Apple had to face innumerable barriers to manage and convince the employees properly about the values and importance of professional training and development process.

Contextual factors of knowledge management and e-commerce that affects business strategy:

Lack of operating skill of e-commerce business process:

In most of the cases, it has been observed that employees do not have proper skill and competency for operating the business process of e-commerce. E-commerce business process is out an out based on technology. Employees should have proper skills and competencies regarding the changing process of technology (Power, Sharda & Burstein, 2015). Most of the recognized business organizations like Apple tend to provide effective training process to their employees so that the employees can be accustomed with the advanced technology. At the same time, it is undeniable that professional training process makes the existing employees more confident and efficient for operating the technology. On the other hand, if any kind of technological error takes place suddenly, employees can handle the issue efficiently after receiving the training program.

Choosing wrong theory of knowledge management within business organization:

Knowledge management process is possessed with several types along with various theories. In order to implement knowledge management a particular business organization has to analyze several factors. The business experts of Apple have decided to use tacit knowledge management inside the process of business. Rao (2012) stated that the business managers of Apple had to face innumerable difficulties for maintaining organizational culture after the implementation of tacit management process at the workplace. Employees showed their intense dissatisfaction for receiving an on job training. They lost their motivational spirit for performing well at the workplace. In this kind of situation, the rhythmic process of business was hampered highly.

Instable economic strength:

Instable economic strength is one of the most important factors that highly affects on maintaining e-commerce business process. A business organization has to invest a large amount of money in order to run an e-commerce business process effectively (Von Krogh, 2012). Apple being one of the largest brands occupying recognition in international market does not have to face immense difficulties for maintaining their e-commerce business process in global market. At the same time, the business experts of Apple are flexible enough to provide an effective training process to the organizational employees. However, it is undeniable that organizations have to face difficulties if the business experts fail to bear the cost of advanced technology.   

Reference List:

Aggestam, L. (2015). Learning Organization or Knowledge Management–Which Came First, The Chicken or the Egg? Information technology and control, 35(3).

apple.com. (2017). Apple. (2017). Apple. Retrieved 5 January 2017, from http://www.apple.com

Becerra-Fernandez, I., & Sabherwal, R. (2014). Knowledge management: Systems and processes. Routledge.

Chua, A. Y., & Banerjee, S. (2013). Customer knowledge management via social media: the case of Starbucks. Journal of Knowledge Management,17(2), 237-249.

Dent, M., & Whitehead, S. (Eds.). (2013). Managing professional identities: Knowledge, performativities and the'new'professional (Vol. 19). Routledge.

Fuller, S. (2012). Knowledge management foundations. Routledge.

Groff, T., & Jones, T. (2012). Introduction to knowledge management. Routledge.

Hislop, D. (2013). Knowledge management in organizations: A critical introduction. Oxford University Press.

Holsapple, C. (Ed.). (2013). Handbook on knowledge management 1: Knowledge matters (Vol. 1). Springer Science & Business Media.

Liebowitz, J., & Frank, M. (Eds.). (2016). Knowledge management and e-learning. CRC press.

Marra, M., Ho, W., & Edwards, J. S. (2012). Supply chain knowledge management: A literature review. Expert systems with applications, 39(5), 6103-6110.

Noruzy, A., Dalfard, V. M., Azhdari, B., Nazari-Shirkouhi, S., & Rezazadeh, A. (2013). Relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance: an empirical investigation of manufacturing firms.The International Journal of Advanced Manufacturing Technology, 64(5-8), 1073-1085.

Power, D. J., Sharda, R., & Burstein, F. (2015). Decision support systems. John Wiley & Sons, Ltd.

Rao, M. (2012). Knowledge management tools and techniques. Routledge.

Von Krogh, G. (2012). How does social software change knowledge management? Toward a strategic research agenda. The Journal of Strategic Information Systems, 21(2), 154-164.

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