Andrew Carnegie said: bodies have the only irreplaceable capital is the employee's knowledge and ability. The productivity of capital depends on how people effectively use their abilities and capabilities that can be shared. Unlimited in time and space, a huge amount of information and bit rate changes to knowledge economy, e-commerce, outsourcing and knowledge management is the primary means to adapt to the situation. IT technology and the Internet, the rapid development of a strong impact on the traditional corporate business model. To win the market, each enterprise must be a knowledge leader in the digital transformation of enterprise and cultivate their core competitiveness.
(A) knowledge leading
80s in the 20th century, Professor Paul Romer's economic growth of 4 elements of the theory that knowledge is the most important factor of economic growth, he said: First, knowledge can improve the yield; Secondly, knowledge needs investment; third , there is a virtuous circle of knowledge and investment relations, investment promotion, knowledge promote investment. In today's information age dominated by the high-tech enterprise value of fixed assets and products in addition to have, the more reflected in the knowledge resources, these resources include business goodwill, brand, intellectual property, customer relations, partnership , enterprise IT systems, business innovation, and enterprise of human capital and so on, so the enterprise's greatest asset should be following the capital, labor after the winners of the "Third resource" - knowledge resources.
Every enterprise has a knowledge resource, but only very few companies able to fully develop the full potential of knowledge resources, in many companies, knowledge is idle capital. Similar to the enterprise value chain, enterprises also exists a knowledge chain. Smooth value chain, can the proliferation of corporate capital, while the knowledge chain, so that enterprises can continue to develop smoothly, in fact, entirely dependent on the value chain, knowledge chain, smooth smooth. There are many companies cart before the horse, or trifles, the company's core value chain positioning in how the proliferation of knowledge resources, development and use of only one kind of foil. In today's society, if not a knowledge leader in the enterprise can obtain partial and temporary growth, economic globalization, the proliferation of knowledge, values, information society under the impact of a large wave of development, companies will eventually lose out. Japan recently announced April 1, 2001 to March 31, 2002 financial statements of large companies report, created the myth of Japan Japanese electronics companies, inter-7 Sony, the other six all into huge losses. These have been in the Chinese market and world market of large enterprises all-powerful, then led the world to rely on is its advanced technology and innovation. In addition to today's loss of influence by the global economic downturn than their bureaucratic management system, slow innovation and decision-making mechanism, employees rigid strict hierarchy, are a direct result of loss of reason. These large companies in Japan still remains at large industrial society, they are for the development and use of information resources do not keep up with the times, so these companies was thrown out of knowledge and innovation are now the mainstream is not surprising that the economic cycle. The operation of a knowledge-leading companies have been related to the survival of today, we look today, successful companies in the world do anything they want, they are to show the success of their possession of knowledge resources, development and use.
An enterprise knowledge chain connected to every corner of the enterprise, its form and manifestation of an enterprise's information system, regardless of whether an enterprise has a complete control by the IT and computer information systems, information systems always exist, that similar in the organic life of the central nervous system. But a company without the knowledge chain is equivalent to information systems, information systems are primary, natural existence; knowledge, much of the information came from, it is through information extraction, identification, analysis and summary of conversion come, so the information system is the basis for knowledge management, knowledge development and utilization of resources is an extension of management information systems. Let the knowledge chain to function, entrepreneurs and the business management needs of enterprise knowledge resource identification, acquisition, and development. This processing of information processing inside the issue, but also information processing process of something else.
To the knowledge-driven business development leader, to face and solve the following three categories knowledge.
1. Information overload. Usually companies already have the knowledge it needs, but being lost in information overload. Employees of Fortune 1000 companies on average every day sending and receiving information and documents 178, 84% of employees per hour will be 3 to 4 times the information disturbing. 71% of employees believe that more information was unbearable. New communication tools do not replace the old familiar tools, but as additional equipment. 69% of businesses do not make any rules for the communication. Hewlett-Packard CEO Lupulate said, to know if the HP Hewlett-Packard should be aware of all our profits will expand 3 times.
Information age is not enough information, not share the imbalance of information, but the information explosion and information overload. Mountains of information buried gold, need to dig it out of business. Information overload problem is not resolved, companies will be immersed in the things of work, loss of direction, not to develop the knowledge, the knowledge thus can not lead.
2. Cooperation and coordination. Enterprise work and mission of the more part of it all the more difficult to work with, the more difficult to coordinate the work. Economic globalization requires different regions, different team, different items of employees, departments and enterprises cooperation and coordination. IBM, in its own web page promises "No matter Who you, behind him in the last 2000 in the Greater China region and more than 130,000 professionals in 150 countries around the world the wisdom of experts and resources." This commitment reflects IBM's corporate culture reflects a strong knowledge resources IBM on the development and use, reflects IBM's cooperation and coordination within the company. This is why IBM IT companies can be the reason the field of evergreen trees.
3. Product and process innovation. In a rapidly changing global economy must maintain a competitive edge in product and process innovation. Pace of technological innovation, the division of micro-and large-scale customers customized services to enterprises only run faster, and continuous innovation to stay ahead. Today, knowledge, ideas and innovative solutions are spread all over the world at an unprecedented rate, which 10 years ago or 20 years ago was unimaginable. We think this is a great opportunity, to seize this great opportunity, business only in products and processes on continuous innovation. Do any market leader in the hope that by virtue of services and products can be changed to keep his position. Intel is well known in the computer chip development and innovation with extraordinary ability, in fact, Intel made in the daily management of the process of transformation of the same classic. 1995, Gartner Group, Intel Corporation has been made on the IT industry a total cost of ownership (TCO) model, found that IT in the field of information technology companies, each PC within the office environment, 3-year average total cost of ownership for the 9092 U.S. dollars . Among them, the software, hardware and technical support costs account for about a total cost of ownership of 1 / 2 weak, and users can not work because of technical problems account for the costs incurred by more than 50%. Intel To this end the company's IT application processes within a standardized transformation. Intel has 18 branches around the world, R & D, design, testing, assembly, sales and other functions scattered across the globe. For such a large global companies, IT application processes and standardized environment, the transformation of the difficulty can be imagined. It not only involves software and hardware unified, corporate culture change, but also the reorganization of work processes and organizational structure of the reorganization, and organizational power of the re-allocation. IT application processes and the environment brought about by the effects of standardization are obvious. 1997 Intel Corporation has made a client and server total cost of ownership of the survey, and found the TCO has grown from 9,324 U.S. dollars in 1995 down to 6310 U.S. dollars. In fact, application processes and IT environment standardization brings maximum benefit to Intel is reflected in the user part of the cost of operating it from 1995 to 4870 U.S. dollars in straight sets to 1900 U.S. dollars. Should be said that the failure of companies each have their own reasons, and successful companies are invariably a great extent in the enterprise to develop and use the knowledge resources, knowledge and leadership to solve the new problems arising.
(B) Knowledge management
Enterprises should be knowledge-driven enterprise development leading into the virtuous circle of knowledge must be managed. Information is not equivalent to knowledge, but the information in the implication of knowledge. Knowledge is in the range of managers and professional and technical personnel in enterprises in practice lessons learned, the values of these people, the specific embodiment of these people to explore, dig and cognitive framework for business and enterprise environments combined.
Because the characteristics of knowledge, knowledge management is difficult. Knowledge management are usually easy to be confused with information management. In fact, information management is the foundation for knowledge management. Without good information management, knowledge management is less. For enterprises, there are two categories of knowledge management work to do first is implicit in the daily management of knowledge management, such work is represented by the scientific management and management standardization. There is no scientific human resources management, implicit in the knowledge of employees in the huge potential of development can not be used, the driving force behind business innovation lost; not a scientific organization to set, transfer and sharing of knowledge can not be achieved; there is no scientific strategy planning, the enterprises can not have the purpose of knowledge management to enhance their core competitiveness.
The second is from a strategic perspective on the company's own resources and then have the knowledge and understanding, re-evaluation, and thus further integration and development. Recognition of the so-called and re-evaluation is a high-level business leaders should clearly know what enterprise knowledge resource, which must be clear as senior corporate leaders as their own financial situation. In a clear knowledge of their own resources, the company top management should understand that knowledge enterprises lack of resources, knowledge resources that have the advantage. Finally companies should have clear objectives and steps to develop and integrate business knowledge resources.
Mexico's Cemex, a cement company, cement industry is a sunset industry, capital occupied a large, low-technology, by policy and economic impact of large, high-impact weather and traffic; Mexico is developing a variety of communication facilities and transport facilities are a lot of problems. Cemex from a visual point of view is not the company prospects. But the company took over in 1985, appointed by the president after Zambrano (Stanford MBA graduate), first employed Iniguez any CIO (Wharton MBA graduate). Zambrano and Iniguez Cemex's knowledge resources on the scientific integration of the satellite communications, customer ordering management system and network management systems supplier to its subsidiary factories, truck fleets and suppliers for dynamic real-time management, the company became a world-class results Cemex cement companies, the world's third turnover, and profit in the world.
By analyzing the Cemex case, we believe that knowledge management should be more stress is placed on knowledge resources for their own knowledge and from a strategic re-integration, because it is actually related to how knowledge management to achieve and enhance their core competitiveness. Knowledge management involves the management of all the current hot issues, such as from the knowledge level of human resources management, said this aspect is the use of collective wisdom to improve adaptability and innovation. How to enterprises sharing explicit knowledge and tacit knowledge to provide a new way, how to maximize each employee to contribute in knowledge, but also can enjoy the knowledge of others.
Innovation of process reengineering and knowledge management is how to make core business processes with the organic combination of knowledge resources for the development and use only with close contact to specific business processes in order to function effectively.
Knowledge management is bound to transform the corporate culture, high levels of knowledge management, enterprise will have to encourage information sharing and knowledge-sharing culture; on knowledge management hostile corporate culture is the greatest obstacle to the spread of knowledge. As the corporate culture is the core competence of the representation, without good knowledge of management of enterprises, corporate culture shown by the core competitiveness of enterprises will inevitably bad.
In the knowledge economy, knowledge will become the main form of production value. In the best knowledge management systems, enterprise traditional management levels, organizational structure and geographical restrictions will be broken, which will make the enterprise employees use the knowledge to do more in the enterprise operation. Good knowledge management system can enable the knowledge management process through well-designed settling down in the enterprise in order to share in a larger context. This could be further from the enterprise of knowledge workers to become independent business resources, greatly enhance the core competitiveness of enterprises.
(C) rely on knowledge management to improve their core competitiveness
Through the above discussion of two issues, I believe that rely on knowledge management can enhance the core competitiveness of enterprises. So what is the core competitiveness? The core competitiveness of enterprises is the impact of competition and activity-specific skills. Some people think that means the business is stronger than competitors particular advantage is that enterprises have, while other enterprises unparalleled ability is a source of business a profit, is a unique resource. Existing core capabilities of enterprises to identify identify, maintain improve, while fostering the development of new core competence is the core competence management, main contents. Companies are currently attached great importance to the management and development of core competencies, a core competitive capabilities to a large extent dependent on the level of knowledge management. In actual operation, how to identify their core competencies and how to develop core competence in business operations is always difficult. We believe that from the perspective of knowledge management, enterprise core competitiveness of understanding and training should be from the following aspects.
1. The core competitiveness of enterprises should be the focus of development strategy chosen. The core competitiveness of enterprises, whether or not easily imitated by others, first of all is the enterprise itself to be particularly good at, whereby companies can gain market potential witnesses, and for a long period of time in exchange for living with this capital. All aspects of an enterprise will have the ability, but only the core competitive ability is the focus of the development strategy chosen. Online retail giant Amazon has itself defined the orientation of the core competitiveness of high-tech industry, rather than people usually think of retail, so in the Amazon, is the dominant software engineer, founded the Amazon brand and the incredibly rapid growth of turnover caused by high-tech. This is Amazon's core competencies, strategic focus is the development of the Amazon.
2. Core competitive ability to provide the main competitive advantages of enterprises. In the past 10 years has become the leader of the Executive of Wal-Mart retail world, relying on its core competencies to provide a major competitive advantage has always been ahead of its competitors, Wal-Mart in the 20th century continued to strengthen since the 90's investment in information technology to gain the basis for sustained growth.
Wal-Mart is the first computer with the industry to track inventory (1969), the first use of bar codes (1980), the earliest use of EDI (1985), the first use of wireless scanning guns (1988) enterprise. These investments have made Wal-Mart can significantly reduce costs, a substantial increase in capital productivity and labor productivity. While information technology is not a sufficient condition for the success of Wal-Mart, but it is a necessary condition for the success of Wal-Mart. Wal-Mart's secret is that investments in information technology to strengthen the core values to ensure that the Wal-Mart's competitive advantage.
3. Core Competence development must be consistent with the times. January 22, 2002, due to poor operation and some suppliers stopped supplying the business has a century history of large U.S. retailer Kmart (Kmart) to the Chicago Federal Bankruptcy Court, the company filed for bankruptcy protection, becoming the United States history, the largest retailer to seek bankruptcy protection. Kmart discount in the 60's the first to enter the distribution network, becoming the second largest U.S. retailer, Kmart in the traditional marketing methods and strategies, there are many unique places, and even marketing is still a model of teaching. But after entering the 80's, Kmart failed to continue their core competitive ability and development of the times combined they lose their competitive edge. McKinsey & Company focused on a large number of retail giants, found that these large retailers are using a large number of information technology, higher productivity than other retail. Among them, Wal-Mart is an outstanding representative. The Kmart and Wal-Mart than in all the basic use of IT technologies are 10 years behind, it should be said that this is the key reason for the decline of Kmart. Obviously have the old, not the core competitiveness of the times can not guarantee the survival and development of enterprises.
4. The enterprise culture is the core competitiveness of the main characterization. The performance of the core competitiveness of enterprises many forms, the core competitiveness in the human, organizational structure, assets and equipment, and other carriers, its external representation is the specific corporate culture. GE's slogan is "Let's bring good things to life" slogan in the plain people behind GE corporate pride and love of technical innovation. GE, one of the best philosophy laid the GE's position in the world today, GE and M & A strategy through the sale of the specific implementation of one of the best philosophy, this philosophy translates into operational GE development strategy. The concept of concrete, namely that incentives created by GE's high-efficiency, organizational structure, boundary-free and low cost, and global collaboration. These operations had in fact GE's core competitiveness of specific performance.
As the core competitiveness of the performance characteristics of the culture, so that the core competitive ability is often difficult to imitate, and will lead the long-term development of enterprises. As the role of corporate culture, core competitiveness and only with their persistent hard imitative.
Persistence of core competences of a double-edged sword. As soon as the formation of core competence, you will not lose in a long time. Enterprises can use their own advantages, continue to win for their own profit; but on the other hand the enterprise edge to sustain the ability to expand their business space narrowing, easy to overlook new opportunities.
Corporate culture is difficult to imitate the enterprise's core competitiveness is not as easy as the transfer of raw materials and other resources and access. Fry uproar current HP acquired Compaq a big deal, the crux of the problem is probably the core competitiveness of enterprises can integrate? And integration of the core competitiveness of enterprises is the key to whether the two corporate culture blending. Nobody doubts that the two industry giants combined IT in the enterprise scale and market scale will increase greatly, but relate to corporate culture, related to corporate culture, the core competitive power, the problem will not be one plus one equals two such simple. If the two corporate cultures are not well integrated, resulting in the management of large shocks, then the core competitiveness of enterprises will not only strengthen, but also greatly weakened, and in fact this example is not uncommon.
5. Enterprise-specific knowledge and resources are the basis of core competence. Core competence is based on the knowledge management capabilities and business Chihpen size. The development of enterprises in industrial society is heavily dependent on capital for the operation, especially in financial capital totally involved in the market, who owns the capital, and anyone can control the market, control the future. In today's post-industrial society and information age, IT and other high technology leadership position, the company's future and the core competitiveness of enterprises Chihpen totally dependent on the size, who have the knowledge will come to have a future. We came back to the era of knowledge is power. Enterprise knowledge management or corporate enterprise Chihpen thickness of the core of the future and business competitiveness.