Knowledge management and innovation: Celtic linen's case

Résumé du document

Knowledge management has been identified as one of the most important resources that contribute to the competitive advantage of an organization. This is due to the fact that knowledge management helps the organization to create, acquire, share and use knowledge in order to enhance learning and performance in the organization. It also allows the organization to sustain its "organization memory" - all the data and information stored from the creation of the company throughout its life activity and which can be brought at any time to bear on present decisions. This encourages avoiding the error of managers' poor organizational memory. Knowledge management also creates a culture which values learning and this way it better prepares managers to learn from past experiences and helps adapted to future contingencies. For instance, Cisco Systems built up a detailed organizational memory on managed acquisitions and the integrated acquired companies. Cisco derives almost 40% of it revenue from these acquisitions. Once an acquisition is consummated, Cisco uses a documented and repeatable process for integration. Moreover, knowledge management focuses on the organization's most important economic asset: its employees. It shows the value of promoting employees and placing emphasis on both departmental communication and inter-departmental communication. It shows that building and fostering social networks can lead to the increase of collective dispositional knowledge and can turn explicit the remaining tacit knowledge. In order to gain a more concrete vision of knowledge management issues within a company, we will analyze the case of the organization "Celtic linen".

Extraits

[...] Knowledge is also shared through social networks that exist at the organisation. These include the employee grapevine and social groups operated by the company for its employees. Celtic lining feels that its location outside Dublin is one of the key reasons it is able to operate for lower costs and thus pass on these savings to customers. It is thus a strategic priority that the company finds ways to keep costs to a minimum. Human Capital With the topic of knowledge management one of the most important issues is how knowledge management is used with regards to people. [...]

[...] It is therefore necessary to change its culture, rather than making a knowledge management system compatible with the existing culture. The necessary changes regarding the culture are listed in the “action plan”. Assessment of the situation and advices to solve the problems The strategy of the company is known by the employees In fact, employees think that managers want cut costs all the time and make them produce more and more for the same money, because customers want to pay less and less”. [...]

[...] When it comes to innovation within the company it is strictly at the higher levels, with top management giving instructions on what changes should be made. From the middle management point of view, the company is not interested in the opinions of the employees but does try to motivate them by talking with them about their jobs within the company. The main motivational tool used within the company is monetary rewards. From the employees perspective however the motivation to stay with the company is not based on their monetary rewards but rather the social culture within the organisation, the opportunity to work among their friends is seen as one of the greatest benefits of the job. [...]

[...] - Do you feel as an employee that you are a knowledge worker or that knowledge management is important in this organisation? How can any one do the most basic of task without having KNOWLEDGE i.e. to sweep the floor you most know where the brush and dust pan is kept ,where to sweep and where to put the rubbish. Employee questions 1. Does a social network exist within the organisation? - If yes, can you please describe the social network currently in place? [...]

[...] With the senior management stating that in the laundry industry, knowledge and experience are very important. So they always make sure that if they do not have the knowledge in house, that they get experts over to help them and train their people. To capture knowledge in the organization they put together manuals on every process from administration, production and transport. So that everything is documented and if key people are missing, they just have to revert to the manuals to know what should be done when and why. [...]