Knowledge Management Paper
How can intellectual capital contribute to innovation, strategic renewal and knowledge sharing in your company? September 2015STUDENT NAME: C MASHAOSTUDENT NUMBER: EMAIL ADDRESS: MODULE: KNOWLEDGE MANAGEMENTCODE: ITM8X04OPINION PAPER NO: COURSE: BCOM HONS IT MANAGEMENT ___________________________________________________________________INSTRUCTOR: DR ZENIA BARNARDIntroductionIn today’s economy, the business growth is predominantly driven by intellectual resources. The increase has underlined the point that the value generated be determined by the intellectual resources that the physical assets. The wealth of the economy is driven more by knowledge resources and information than the process of production. The development of knowledge-based economy has brought change in how companies do things, they have put more dependence on their implicit knowledge and that helps to build competitive advantage, generating more revenue and making more profits and becomes a leader in the industry where the company doing business. Intellectual capital in a company is well-defined as all non-financial and non-physical resources that are completely or partially controlled by the company and they contribute in creating the value to the company (Roos, 2005).
There are several elements that influence the performance of the company. For sustainable competitive advantage and performance improvement, the company should be able to afford to offer their services and products at a little rate. In the modern economy, several companies have adapted to the current demands of the competitive environment by being inventive in the way they run their business processes. Many researchers believe that the intellectual capital is an important resource that assists the companies to generate value in the current ever changing environment and it allows the companies to come up with new ways of doing things. Intellectual capital brings high performance in the company through the skills and experiences of the employees. Intellectual capital as the primary driver of a company’s performanceThere is an increasing need in the business environment for the companies to change further, than resolving the problems at hand but to constantly refine the knowledge and skills of employees as the business environment conditions and situations keeps on changing. This entails that learning has developed as a significant commotion in business environment of the knowledge-based companies and the capability of a company to learn and adapt faster in the forever changing environment than its competitors is the only viable form of competitive advantage. Knowledge and learning are of major importance for creating and sustaining competitive advantage (Nonaka, 1994).