Knowledge Management By: Andrew Mitura

Topics of Discussion: Introduction: – Global Economy and the effects on business Knowledge Management-The Basics: – Definition, Focus: Move to Convergence: – Employees are getting overworked Creation of new business strategies – Competitive Intelligence: Definition, and Theory of Competitive Intelligence Be afraid, be very afraid: – Pros and Cons of Knowledge Management

Introduction The Global economy and the effects on business Big companies are winning: Wal-Mart Stores Inc (WMT)Last 12 months ( as of 7/26/09 ) Sales* Bil Income*13.26 Bil Sales Growth*+7.20% Income Growth*0.00% Net Profit Margin3.40% Debt/Equity Ratio0.69

Introduction The Global economy and the effects on business Big companies are winning: Home Depot Inc (HD)Last 12 months ( as of 7/26/09 ) Sales*69.56 Bil Income*2.47 Bil Sales Growth*-7.80% Income Growth*+44.40% Net Profit Margin3.55% Debt/Equity Ratio0.64

Introduction The Global economy and the effects on business Big companies are winning: Amazon.com Inc (AMZN)Last 12 months ( as of 7/26/09 ) Sales*20.51 Bil Income* Mil Sales Growth*+29.20% Income Growth*-10.10% Net Profit Margin3.25% Debt/Equity Ratio0.03

Introduction The Global economy and the effects on business – Small companies are losing: Mom and Pop shops, local retailers, family owned and operated businesses. Have to find their “edge”, to stay competitive. Have to minimize costs and increase profits. – Send production across the globe, to expense costs. – Make their employees more efficient. » This is the premise of Knowledge Management.

Knowledge Management The Basics: Definition: – “Comprising a range of practices used in an organization to identify, create, represent, distribute and enable adoption of insights and experiences”. Focus: – Improve efficiency – Improve competitive advantage – Improve innovation – Integrate ideas – And expand the knowledge of the organization.

Move to Convergence: Employees are getting overworked Due to the economy, more and more companies getting stretched thin. Employees are getting asked to do more and more work. So, either the job is achieved, or it is just forgotten about. – The theory of Knowledge Management is to re-think the task at hand. Use technology to help innovate a new method of achievement. Ask others for their opinions. Reevaluating the method of achievement.

Creation of new business strategies Competitive Intelligence Definition: – “Competitive Intelligence is the process of making the company more competitive in the global economy.” Theory behind Competitive Intelligence: – Setting standards of comparison – Identify risks and opportunities. – Send out test ideas into the economy.

Be afraid, be very afraid: TaskProsCons Computer automation Example: Using computer programs to increase productivity. Companies increase revenue may hire employees venture into other industries. Company may reduce the number of employees, due to machines are now doing the job. Human automation. Example: assembly line. Sets a standard of operations. Maximizes production for everyone to follow. Once the Project is completed, where do the individuals go? that project might be so unique, that their job will not transfer into other industries. So, the individuals will have to get retrained.

Sources: “Competitive intelligence” wikipedia.org. 8 June July “Knowledge management” 28 June July “Knowledge Management Definition and Solution” July 2009.