Knowledge and Innovation

Knowledge and Innovation

Introduction

Today, organizations are faced with the pressing need for long-term competitive advantages. As a result, organizations have been taking actions in response to the changing environment. In this era, where organizational development has been facing rapid changes, there is an approach aimed at reducing risks at enterprise through knowledge management. The aim of knowledge management is to define the role of knowledge in business management, which adds value and innovation and constitute a significant part of strategic component. Organizations generate new knowledge from the experience, skills and attitudes in the development of their own culture. It is essential for organizations to create an environment that stimulates knowledge in a convergence of human resource quality, the ability to manage information and the presence of an organizational model. The organizational model needs to implement and integrate the tools, techniques and methods for the effective process of knowledge creation. In this context, it is essential to have an unavoidable relationship between knowledge management, information management, technology management, organizational culture and human resource management.

On the other hand, innovation has never been more powerful than it is today, as organizations face severe competition, along with urgency to innovate technologies and minimize world resources. For launching new ideas successfully, it requires an array of entrepreneurial, research, design and commercialization skills, as well as the ability, to bring these skills into play at the right time; capturing value from new ideas depends upon having the right business models and management of intellectual property. British Petroleum is an energy company, engaged primarily in the oil and natural gas. It is one of the largest companies in the world (since the eighth as the American magazine Forbes) and the third largest firm dedicated to oil and gas after ExxonMobil and Royal Dutch Shell. Knowledge management and innovation in BP are considered a vital element for the purpose of surviving, growing, and significantly influencing the aim or goal of the industry. However, development does not always bring success, but the company should be able to take failure as a challenge.

Discussion

The Knowledge in the Field of Organization

A number of sources contribute toward effective management of knowledge, which can provide new sources of innovation for a company. Furthermore, effective use of knowledge in the innovation process gives a company competitive advatge over the rivals. This principle is followed by the management of BP, to ensure a strong grip on the market forces. BP believes that knowledge management requires efficient information management (Borghoff, 1998). Therefore, the success of BP in knowledge management is invariably conditioned on how to make such management in the organization and the quality of the results for the process of innovation. Other elements, which are essential for achieving innovation through knowledge management, are the use of technologies as essential tools for the rapid and adequate transmission, generation and dissemination of knowledge. In addition, the development of human resources and organizational culture acts as globalized organizations, which require a commitment at all levels and depends largely on ...