Advantage Of Knowledge Management

1800 Words8 Pages
1.1 Knowledge management is the way to manage the information and resources efficiently in an organisation. It helps the organisation to create value and to meet tactical and strategic requirements. It is the process of identify, capturing, evaluating, distributing, retrieving and sharing of an organisation’s information assets to enhance its performance and competitiveness. Knowledge management is very important to an organisation. It can help to minimize the costs. For example, if they know that what to do with the existing knowledge, it will definitely reduce the costs. It is costly and inefficient that they don’t know what to do or do something that has already been done by someone or elsewhere. Furthermore, knowledge management can also…show more content…
The rivalry among existing competitors is high when there is large number of firms. When there is large number of firms within an industry, the competition for the same customers and product resources will be increase. The competition will be even much fierce when industry competitors are equal in size and power. They compete for market dominance. Furthermore, the slowed industry growth will cause the competition to be increase to gain market share. The higher the firms’ fixed cost, the firm will compete to increase the profit to cover the fixed costs. For CMP, there are more similar firms within an industry will lead to the higher the rivalry among existing competitors of CMP. The threat of new entrants is high when the new competitors are easy to enter to a market while low when there are significant entry…show more content…
Security may fall victim to human error, for instance when a novice of data base in CMP may copy data from the database into an email for troubleshooting. Purposes and during the process accidentally include external email addresses in the recipient list. When staff in CMP uses external devices that have viruses and put it on a system that is containing the whole data of the organization it will corrupt the data of the organization. In the case of CMP managing their database very careful this has to be noted. Like in the way they do maintenance, must at times CMP‘s software application maintenances open connections to IT database and that is risky. A hacker can seek to take control of these applications after they get inside, they often do that by seeking application passwords set to their
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