In The Absence Of Suitable Knowledge Management System Essay

01.00. Introduction

To what extent State Trading Organization Plc ( STO ) could heighten their concern operation efficaciously, in the absence of suited cognition direction system?

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In the nowadays of postindustrial society, cognition has become a most critical resource of the economic system. Faced with planetary competition and progressively dynamic concern environments, organisations are being advised to assemble people of diverse endowments and employ their expertness to derive entree to new markets and new engineering. Further, big perpendicular organisation, such as State Trading Organization Plc, STO ( Maldives Trading company ) which is consider every bit impregnable as a consequence of their immense technological substructure and physical installations, have become inflexible in reacting to volatile markets and run intoing clients ‘ demand in merchandises and services quickly.

The end of cognition direction is a practical 1: to better organisational capablenesss through better usage of the organisation ‘s single and corporate cognition resources. These resources include accomplishments, capablenesss, experiences modus operandis and norms, every bit good as engineerings. Amazingly, despite the now-solid consensus on the importance of cognition or “ rational capital ” to every company ‘s success, most companies really manage knowledge really severely ( Collins, 2005 ) . Further, really few have clearly defined direction functions, such as Chief Knowledge Officer ( CKO ) , or organisational constructions for the direction of cognition as a resource. Of that, few have a shared cognition linguistic communication that allows efficient communicating.

However, attending to knowledge direction is turning. Companies are acknowledging that they compete in interestingly knowledge-intensive markets ( Huber, 2003 ) . To thrive and even to last, they are forced to rethink the direction of their organisational cognition base.

The premier intent of this essay is to place importance of recognizing value from cardinal manner of entree to organization-wide cognition resources. By supplying ready entree to information that had been scattered around the organisation and besides by supplying an alternate to labour-intensive coordination mechanisms such as facsimiling squad papers, the organisation realized benefits in footings of growing rate, keeping, and moral.

In conformity to ease the aims of the essay, will besides measure the bing cognition direction system of State Trading Organization Plc of Maldives ( STO ) , and their enforced scheme to portion and use the cognition direction system, and its impact on their operational effectivity. Further, the essay will besides stress on the possible mechanism, from which STO could use information engineering to implement proper cognition direction system, and how the system can be a solution to over come their challenges in the country of information engineering, in modern and dynamic concern environment.

Ahmed Mohamed and Ibrahim Shareef
Article of Knowledge Management and its Impact for Organization
2004 ; Vol: 12, Issue: 5
Ahmed Mohamed and Ibrahim Shareef defines that the knowledge-organization through its ability to accommodate to the altering environment by making new cognition, circulating it efficaciously and incarnating this cognition into pattern. Harmonizing to them, the exclusive concern of a “ knowledge-creating company ” is uninterrupted invention ( Haveeru daily intelligence paper, retrieved on 9th September, 2008 ) .

Tile: Knowledge Management and Organizational Performance
Mohamed Hussain Manik
Journal of Knowledge development for better public presentation
2004 ; Vol: 16, Issue: 6, pp: 1/3
As company expands there is a bound to the effectivity of the informal ways of cognition has ever been shared within the organisation. M.H. Manik suggested that companies above certain figure of employees are excessively big for people to hold a group of corporate organisational cognition ( Manik, 2004 ) .

Title: Knowledge development position: A survey of employee reaction
Ibrahim S. Mohamed
Journal of Knowledge direction and & A ; Data system
February ; 2003 ; Vol: 65, Issue: 14, pp: 113/117
The rapid addition in engineering within the workplace required new accomplishments and flexibleness on the portion of the employee. Organizations began to see that they needed to organize information and cognition in a new ways. This meant assisting employees to react to alter, promote creativeness and invention and learn and better productiveness ( Mohamed, 2003 ) .

“ For better information system ” ( 2005 ) . Retrieved on 9th September 2008, from Ministry of Trade and Economic & A ; Development, web site:
It has been argued that Asiatic concern society is in the thick of a profound revolution, a 2nd industrial revolution based non on energy, but on information, linked to the development of the computing machine. M.W.H. Manik noticed every bit early as the 1980s that there were an increasing proportion of cognition workers doing up the work force ( Trade Ministry of Maldives, retrieved on 9th September, 2008 ) .

“ Distinguishing Knowledge from Data system ” ( 2005 ) . Retrieved on 10th September, 2008, from Ministry of Information and Arts, web site:
In order to understand cognition direction, it is necessary to see the topic within the broader context of the tremendous alterations taking topographic point in the planetary economic model itself ( Ministry of Information and Arts, Maldives, retrieved on 10th September, 2008 ) .

Title: Better Knowledge direction System through Innovation
Mohamed Firaag
Journal of Knowledge for better public presentation
2006 ; Vol: 12, Issue: 2/4, pp: 1/5
Changes in computing machine engineering during the mid 1980s were a key to the displacement of cognition direction system ; as computing machine grew exponentially in velocity, decrease in cost and handiness their users changed. Organizations were, for the first clip, able to rapidly capture, codify and circulate immense sums of information across the Earth ( Firaag, 2006 ) .

Ismail Shaugee and Mohamed Hassan
Article of Importance of Developing Knowledge for better public presentation
2006 ; Vol: 26, Issue: 3
Shaugee and Hassan ( Shaugee & A ; Hassan, 2006 ) argue that informations, information, cognition and competencies corresponds to different degrees or signifiers of human activity. They argue that informations is a formalistic representation of information, and that information us basically a charting of cognition within a shared patterns.

Title: Knowledge Management for Intellectual Capability
Ibrahim Khaleel
Journal of Intellectual Capital for better Economy
2007 ; Vol: 12, Issue: 34, pp: 21/23
Intellectual capital theoretical accounts take a extremely scientific attack to knowledge and its direction. Such attacks view cognition as a “ medium of exchange ” which is assumed to hold intrinsic ( or at least believed ) valued ( Khaleel, 2007 ) .

Title: Performance addition through Better Knowledge direction
Ahmed Massoodh and Ibrahim Shaafiu
Journal of squad public presentation Management.
2007 ; Vol: 10, Issue: 5, pp: 18/23
Knowledge direction can better efficiency and effectivity, and increase reactivity to market alteration ( Massoodh & A ; Shaafiu, 2007 ) .

Tile: Affirmative action on pull offing cognition direction
Adam Mauroof
Journal of Importance of making Knowledge Management System
2003 ; Vol: 16, Issue: 4, pp: 56/63
Harmonizing to Mauroof ( 2003 ) , all organisations have a figure of resources, some of which can be converted into capablenesss such as know-how or tacit cognition. Knowledge direction ‘s intent, merely set, is the creative activity, aggregation and transition of single ‘s cognition into organisational cognition.


State Trading Organization Plc with its subordinates, a joint ventures and associates in a state broad leader in the concern sector. It has important and focussed involvement in crude oil, building stuffs, and electronic points, cooking gas, cement, roofing sheets merchandises, place contraptions, super markets and insurance. The company is geographically diverse, with operation and developments in Maldives and Singapore.

The roots State Trading Organization PLC, dates back to 1964 when it was opened to finance the buying and importing of indispensable nutrient points needed for the Maldivian community in majority. Today STO has sustained this of import duty to supervise the nutrient security concerns of authorities and diversified into many other countries of importance such as energy demands of the state which now become portion and package of STO ‘s authorization. Within the model that includes these tow countries STO has diversified and is besides competitively engaged in trading in other countries including Consumer electronics, Home contraptions, Checkups, Canned nutrients, Health nutrients and a rang of other high quality merchandises.

The fast turning engineering brought a revolution for market topographic point around the Earth. Through advanced IT system, consumers are good informed and sophisticated on many positions, and within the affair of few seconds consumers are able to acquire whatever relevant information refering their desires. In these fast turning market economic systems, on the other manus, concern executives and directors are compel to place the alterations taking topographic point, together the every motions of their rivals. However, this could be merely achieve through proper mechanism of assemblage, measuring, hive awaying and besides heightening the cognition base of the companies distinct from that of their rivals.

STO is the biggest trading company in Maldives who cater for different client base with distinguishable demands from different geographical locations throughout the state. For such a concern and their operational effectivity, doubtless they ought to hold proper mechanism with regard to the knowledge/information of different market sections, demands, demands client penchants and market motions, rival ‘s behaviour and their schemes, and many more information in order to rule the market and keep their market place expeditiously. Although this is a fact to be accepted without any vacillation, unless the organisation dressed ore on the country and place the significance and its importance to over come the challenges faced by the executives of the organisation, and undertake the issues efficaciously, STO might non be able to make their marks successfully. Further, by using the available resources and necessary capital investings company can able to construct and develop concern physically to the certain extent, but to do it as existent show they should necessitate extended cognition and information in many different countries and which is know as cognition direction system.


The importance of organisations in modern economic system and development of new and big organisation are facts that make the issues like efficiency and control on the Centre of attending in different societal scientific discipline. Efficiency in organisation is straight linked with its organisational system. However, due to inappropriate construction adopted, STO is confronting trials to heighten their efficiency to run into the demand efficaciously.

Organizational construction of STO has with multi-layers, by and large split by maps. The functional units-manpower, logistics, transit ( imports and exports ) and building are cardinal units, and are common to the concern unites. Due to the centralised system, the caputs of these maps studies straight to Chief executive officer. Furthermore, due the civilization adopted by the company, it seems that they have household like civilization where the accents are given chiefly on relationships instead than persons accomplishments. Deputation without proper authorization, found no authorization and line of authorization is stiff where watercourse lines have non been defined decently. With all that, morality and answerability does non be, and employees are been isolated among the section caputs.

Although cognition direction is all about garnering information, analysing and recovering and using when necessary ( Blacker, 2006 ) , due to the system implemented by STO, direction is confronting troubles to present the goods and service at maximal degree to their clients. STO provides its service excessively many different clients at different sections by their SBU ‘s, at different geographical locations. But to supply these of import services in dynamic concern environment is non an easy undertaking unless they manage their cognition direction efficaciously.


At the degree of the organisation, benefits are possibly potentially more immediate, although there are a figure of positions. Nonaka and Takeuchi ( 2002 ) present managerial positions of a cognition direction company expressed in footings of cognition vision, cognition crews, high-density interaction, leveraging merchandise development, authorising in-between directors, hypertext organisation and a web with the outside universe. Further, Grant ( 2003 ) in suggesting knowledge-based houses in which cognition is the overpowering productive resources argues that there are different types of cognition which vary in their transferability.

Of that, persons are the primary agents for cognition, and most cognition is capable to economic systems of graduated table. In add-on to that, these two writers discussed cognition in Polyani ‘s footings of tacit and expressed cognition and usefully remind us that a consideration of cognition is non something new. Further, Barnard ( 2001 ) describes the map of the executives as to convey together to make the organisation, the stuff, societal and single subsystems that makes up the house. And besides, within the organisational context, and single dimensions and relates each to tacit and explicit classs ( Figure 1 ) .

The house is seen as a self-organizing system which can utilize its cultural cognition every bit much as the difficult cognition to suit the uncertainnesss within its environment. Directors are frequently Catholic in their pick of thoughts so it may be possible to suit the spread of positions by get downing from a place where all resources are considered to hold a cognition constituents. Investigating where strategic or nucleus competencies lie within the house ‘s procedures has, in a resource-based position, focused attending on the physical resources and the manner in which they are used.

A cognition based attack would promote physical resources to be associated with cognition. For case the competencies associated with the building of Formula One autos in houses in the South of England are non in the physical engineering used to plan and construct autos, but in the know-how and experience of people.


Today ‘s concern environment is characterized by uninterrupted, frequently extremist alterations. Such a volatile clime demands a new attitudes and attack within the organisation, and action must be prevenient, adoptive and based on a faster rhythm of cognition creative activity. Further, new merchandises and invention are progressively at a faster than of all time before, along with development in client penchants and demand. Therefore, directors should no longer look into their clients superficially ; they must instead delve more deeply than study and feedback signifiers.

As STO have become more complex and information ought to be readily accessible, frontward believing directors have grown concerned with how to let cognition to flux freely and how to command and pull off this critical flow of information and engineering at the same clip. Of that, all of these factors make cognition direction a necessity instead than a luxury. As a consequence, STO must hold a clear grip on how cognition is discovered, created, dispersed, and put to utilize.

When STO started their concern across the state, they were the lone concern party who were able to run into the demand and provide them consequently. As exclusive concern entity for full state without interfere from any competition, STO has achieved a batch and captured market portion enormously. As there was no competition in the market, STO was bear downing every bit much as they wanted and enhanced their grosss efficaciously. However, unlike those yearss, at present many concern parties and companies are making same types of concern that of STO, and enabling to make competition and competition among the rivals.

With all the fact above, their rivals are in the same degree concentrating on same section and about similar merchandises. So that, for better and further development, STO need to hold an advantages over the rivals, and this can be overcome through execution of proper cognition direction to heighten their concern operation efficaciously.

Today ‘s volatile concern environment demands a new attitude and attack within organisations actions must be prevenient, adaptative, and based on a faster rhythm of cognition creative activity.


Knowledge direction is discussed in a figure of ways, including the economic degree ( Mauborgne, 2005 ) , which predicts a cognition age to follow, and an industrial age where cognition becomes the confining resources, instead than fiscal capital. The degree of the house with a knowledge-based position ( Grant, 2003 & A ; Botkin, 2004 ) proposed a displacement from a focal point on resources, as in the resource-based position of the house ( Grant, 2004, Prahald & A ; Hamel, 2005 ) . The ulterior position focused at a strategic degree on the impression of nucleus competencies which might give the house sustained advantage over its rivals through their usage in procedures. The significances of cognition and organisational acquisition are aired ( Leonard & A ; Straus, 2002 ) , and measuring of cognition as rational belongings or assets is advocated as an of import constituent of direction control system for future organisation ( Edvinsson & A ; Malone, 2005 ) .

Through promotions of information engineering, KMS engineering has evolved to integrate the three constituents into a individual bundle. These include organisation ‘s cognition portal and knowledge direction suites. Further, there were some advanced applications such as adept location system, which a company like STO could see to get more and extended cognition for effectual and smooth concern operations. Through development of IT application, STO can utilize this engineering to turn up experts who can supply necessary information within the sensible clip period.

The below diagram show the theoretical account of Expert Location System ( ELS ) . In this system, employee of STO who need aid may post their job on the corporate intranet and ask for aid. Similarly, even STO may bespeak for any advice on how to do their concern schemes suited for the concern environment around them. Successful companies like IBM besides often use method to implement their schemes efficaciously.

Following stairss are the procedure which includes in this method. And scenario presentations are to assist employees of STO could utilize the method to get more information and to portion them efficaciously among their SBU ‘s around the state.

Measure: 1. when pull offing several SBU ‘s at different geographical location of the state, if an employee wants to specific information he/she may subject petition saying the country and intent of the information, into the expertness location direction system.

Measure: 2. so the package will seek its database to turn up an reply to the inquiry or petition already exist. If it dose, the information ( requested studies, spreadsheets, etc. ) is return to the employees within the sensible clip periods. If non, so the package would seek paperss and archived communicating for an “ expert ” .

Measure: 3. one time qualified campaigner is located, the system would inquire if he is able to ease the petition from a co-worker. If so, he could so subject a response. If the campaigner is unable ( possibly he is in a meeting or otherwise out of office ) , he can so elect to go through on the inquiry. The inquiry is so routed to the following appropriate campaigner until one responds.

Measure: 4. after the responds is sent, it would have for truth and so direct back to the individual who request. At the same clip, it would add to the cognition informations base. In this manner, if the inquiry comes up once more, it will non be necessary to seek existent times aid.

Success rate of this method is clear grounds to use this mechanism and enhance concern operations distinct from that of the rivals. Expert Location system are synergistic computerized system that help employees and companies find and connect with co-workers with expertness required for specific jobs, whether they are across the state, or across the room. As per Levinson ( 2005 ) , companies that have been frustrated by traditional cognition direction are interestingly looking for suited mechanism to heighten their concern operations expeditiously.

In add-on to that, above theoretical account would be an appropriate tool for STO, who is holding troubles to heighten their cognition direction system from traditional ways of managing them. Further, STO dose have all the necessary resource for them to prolong in the market. However, in this dynamic concern environment they need to set up proper cognition direction system for farther growing and do their operation efficaciously than what they have been managing the concern in the yesteryear.

Below tabular array shows the benefits and advantages which STO could hold through execution of above recommended method to better their cognition direction system.

Procedure Results: –
Will heighten communicating

Reduce job resolution clip

Faster communicating

Shortening proposal clip

More seeable sentiment of staff

Faster the consequences

Will increase staff engagement

Faster bringing to market

Greater overall efficiency

Organizational Results: –
Will increase gross revenues

Better Services

Reduce costs

Customer focal point

Higher profitableness

Target selling

Proactive selling

08.00. Decision
It is clear that organisation operating in today ‘s complex and dynamic concern environment must hold a clear apprehension of cognition direction for better and effectual concern operation that will hold advantage for the organisation.

If STO could revise their full system and place the barriers due to which they are non able to heighten their operation within the competitory concern environment, and they could place the importance of implementing proper cognition direction system through which they can supply and run into the outlook of their shareholders.

Further, with the aid of proposed theoretical account in this essay, they could happen the weak countries and sections and how they can make full the spread between the sections. In fast turning concern economic systems organisation should hold extended information or cognition in order to supply better and quality services to clients. The theoretical account illustrated on how to put the petition and to obtain information for their desires.

With aid of the theoretical account, STO could non merely get information, but besides will assist to place the penchants of their clients and do their goods and service available consequently.

Potentially, a cognition position should assist those pull offing operational procedures to understand the knowledge-based capablenesss they need, particularly when clients demand is be givening to increase instead than diminish the degree of client. Harmonizing to Zack ( 2005 ) a cognition attack will inform and steer the design of merchandises and services and the procedures to bring forth and present them, will assist in the planning and control of the attainment of public presentation and will enable betterment to be made.


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