Knowledge Management as a Strategic Advantage for SMEs

Global Knowledge Management Congress 2014

RJ. LiowEntrepreneur. Author. Speaker

Key take out

How Knowledge Management give SMEs the competitive edge

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Key factors influencing business prospects for SMEs:

Cost of doing business

Business sentiment

Consumer confidence

Consumer spending

* Survey on SMEs, 2012

The 3 main measures undertook:

Product or service improvement (69%)

Process improvement (47%)

Up usage of machinery and equipment (36%)

The Challenge

The ability to store, capture, and distribute knowledge within and across

organizational boundaries

Knowledge and Knowledge Management

are strategic advantages

Low-Cost Strategies:

Knowledge used to cut costs, lower prices, and shorten cycle times

Differentiation Strategies:

Knowledge adds value to a product giving its unique characteristics

Significant competitive advantage over competitors through:

Knowledge Management in the process of acquisition, retention,

maintenance, and retrieval of knowledge within a SME

Avoid:

Knowledge that is isolated in one department or in a specific segment of the value chain is not utilized to its full

extent.

The quest to innovate – essential for SMEs to remain ahead of competitors.

Acquisition of new knowledge – is a way to gain and maintain competitive

advantage

New Knowledge:

• Should be properly managed

• Through internal knowledge management systems

• Create learning opportunities for other departments

2 types of knowledge management systems for renewing competitive advantage

1. Passive Knowledge Management systems

• Eg EDI system

• Orientation on the “present”

• Tend to be used with channel members

• eg schedule component deliveries, reduce cycle time, cut inventories

2. Active knowledge management systems

• “Future orientation"

• Anticipates future buyer/seller behavior (e.g. market back R&D).

Proactive knowledge management systems:

1. Enhance efficiency through time and cost savings.

2. Link “voice of the consumer” to all stages of product development, production and distribution through the value chain

Internal and external knowledge management systems give greater

competitive advantage

Possible challenges in implementing Knowledge Management in SMEs

• Time for development actions.

• Culture, motivation of staff, and ability of the management team to share ideas and discuss strategic issues.

• No sufficient manpower to lead and execute knowledge management throughout the organizations.

However difficult, set up your Knowledge Management System

and share with your team

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