Seminar Report
Seminar Report
Seminar Report
The major finding of the study is that the Apple Incorporation used Data Warehouse,
Company intranet and Expert System as a Knowledge management tools to facilitate
knowledge Management practice inside the organization. The Statistic of apple shows
that the total revenue of apple incorporation is in increasing trend through which study
conclude that Apple has achieved the level of 5 in knowledge Management Maturity due
to the continuous effort in enhancing knowledge management practice inside the
organization.
Finally from the above findings, the study concludes that the knowledge management
system is one of the major factors for the company to competitive advantage that helps
the organization to sustain in the competitive global market.
TABLE OF CONTENTS
CONTENTS PAGE
DECLARATION i
APPROVAL SHEET ii
ACKNOWLEDGEMENT iii
EXECUTIVE SUMMARY iv
TABLE OF CONTENTS v-vii
CHAPTER I: INTRODUCTION
3.1 Introduction 9
5.1 Summary 19
5.3 Recommendations 20
LIST OF FIGURES
KM = Knowledge Management
i.e. = That is
& = And
IT = Information Technology
Humanity has always possessed over knowledge, knowledge acquired from observation
or from past experiences. In order to preserve this knowledge, they told stories to one
another, passing down through generations. While these stories could usually be taken
with a grain of salt, the knowledge behind them was still intact and helped humanity
progress over thousands of years. This storytelling turned into writing knowledge and
stories down, preserving them more adequately. Eventually this evolved into knowledge
databases as we know them today. All of this passing down knowledge can be seen as
forms of knowledge management.
Knowledge management (KM) is the process of creating, sharing, using and managing
the knowledge and information of an organization. It refers to a multidisciplinary
approach to achieving organizational objectives by making the best use of knowledge.
Knowledge management efforts typically focus on organizational objectives such as
improved performance, competitive advantage, innovation, the sharing of lessons
learned, integration and continuous improvement of the organization. These efforts
overlap with organizational and may be distinguished from that by a greater focus on the
management of knowledge as a strategic asset and on encouraging the sharing of
knowledge.
Sustainable competitive advantages are company assets, attributes, or abilities that are
difficult to duplicate or exceed; and provide a superior or favorable long term position
over competitors. Sustainable competitive advantages are required for a company to
thrive in today's global environment. Apple Incorporation has adopted Knowledge
Management System to gain the sustainable competitive advantage. This Study describes
on the knowledge management system adopted by the Apple Incorporation.
1.2 Statement of Problem
The general objective of this study is to address the Knowledge Management System
applied inside the apple incorporation in order to achieve sustainable competitive
advantage by the Company.
This study seeks to observe over the knowledge management system practiced by the
Apple Incorporation to gain sustainable competitive advantage. This study illuminates the
importance of Knowledge Management System that every business organization should
adopt in order sustain its improvement in Organizational performance since knowledge is
very essential key to success which enables to survive in a: competitive business
environment.
1.5 Study Methodology
The study is about the case analysis of Apple Incorporation in the field of knowledge
management. Hence, the descriptive research design has been used in this study to
describe the characteristics of the case.
Statistical tools like table and figure have been used to analyze the collected data and
information.
Every case study is accompanied by the limitations. Limitations can take the form of
shortcomings, Conditions, Time constraint or any other influences which is apparently
out of controllable by the researcher. Similarly here are some limitations:
Limited information about the related particular subject for the study.
Information collected from the secondary source of data only.
Some data and information collected are not common among the different source.
Thus creates problem and confusion in the study.
A study talks only about the Knowledge Management System as a source to gain
sustainable competitive advantage whereas Competitive advantages of the
company are driven by other factors also.
CHAPTER II: LITERATURE REVIEW
As knowledge has been defined and considered as one of the most valuable sources in the
processes, it is important to manage this source. Knowledge management helps to create
and propagate information and knowledge. It also provides a sufficient, effective and
efficient use of knowledge in order to provide strategic competitive advantages for
organizations (Marques & Simon, 2006; Rahimli, 2012; Nawaz et al., 2014; Loureiro et
al., 2015). Researchers (Lee & Lan, 2011; Liu & Deng, 2015) also said that
knowledge is an important success factor that helps the organizations to gain a
sustainable competitive advantage. The development of competencies and knowledge
within the organizations has been increasingly recognized as the key to achieve
sustainable competitive advantages (Fierro et al., 2011; Suresh, 2012). Knowledge
management can be one of the main organizational strategies as it helps to create new
business processes to enhance the organizations' performance (Wu & Chen, 2014).
Rasula et al (Rasula et al., 2012) and Ahmed et al (Ahmed et al., 2015) stated that one of
the main purposes to introduce knowledge management in organizations is knowledge
management brings positive impact and outcomes on organizational performance.
Kiessling (Kiessling et al., 2009) done a research and suggested that knowledge
management will bring positive outcomes of the organizations' innovation, product
improvement as well as employee improvement. In the past, the organizations can
usually compete each other by offering a lower price and better quality of products.
But now, most of the organizations learn new knowledge as it provides sustainable
competitive advantages. Meanwhile, the organizations that are rich in knowledge are
able to enhance their creativity and efficiency as well as reach a new quality level (Chou
et al., 2015; Dickel & Moura, 2016). According to Liao and Wu (Liao & Wu, 2009),
they said an effective knowledge management through capabilities of development
will be an advantage to organizational performance. When the organizations have a
better development of capabilities, they are able to provide marketing offerings to meet
customers' needs. Knowledge management provides the opportunities for the
organizations to explore tacit and explicit knowledge of individuals, groups and
organizations and convert these knowledges into organizational assets for the use of
decision makings. Knowledge management also helps to enhance the effectiveness and
efficiency of organization's manpower (Bhatti & Qureshi, 2007; Dahiya et al., 2012;
Byukusenge et al., 2016). Zaied et al. (2012) done the research and showed that there is
a relationship between knowledge management and performance improvement
measures. The quality organizational knowledge can be used in decision makings. It can
be concluded as if the organizational knowledge quality is good, the organizational
performance improves significantly.
Research done by Ibrahim and Reid (2009) stated that knowledge management is also
important for the organizations to create sustainable competitive advantages and improve
business processes. The business processes can be improved by reducing the processing
time as the individuals can share their best practices. Besides, during the conversations
and discussion among individuals, it can generate valuable knowledge which can be
shared among each other. Knowledge management can also enhance the organizations'
operational activities. Rodriguez and Edwards (2010) and Jelenic (2011) agreed the
statement and analyzed that this can be achieved by reducing the lead time, product-to-
market time, design cycle time as well as improving the product quality. Customer
services performance of the organizations are improved with knowledge management.
With the help of knowledge management, the organizations are able to store the data and
information properly. The employees are able to find the required information requested
from customers at a particular time. This also increases competitiveness as they can
provide better services than others (Bueren et al., 2005; Guchait et al., 2011; Pension et
al., 2013). The organizations are able to solve the problems through innovative solutions
which rely on knowledge shared among individuals (Bueren et al., 2005; Guchait et al.,
2011; Pension et al., 2013). Competitiveness does not only refer to the performance
quality, products quality and technical efficiency of organizations in today's business
environment, but it also refers to the ability to find new ways to overcome the
obstacles within the organizations through the production and application of
knowledge.
The model was developed by Siemens AG's Competence Center for Knowledge
Management. It helps analyze all the relevant key areas of knowledge management such
as corporate environment, culture, strategy, etc. to define a firm's current position and the
future directions it should take. In Siemens AG KMMM, the 5 maturity levels are:
1. Initial:
Knowledge management is a one-time process
There are no formal KM practices within the organization
2. Repeatable:
The significance of KM is recognized
KM processes are implemented and tested
3. Defined:
KM is supported by day-to-day activities
KM roles are created, defined, and filled
4. Managed:
Basically, this stage includes everything in the "defined" stage, except that
it is more standardized
Optimizing
Managed
Defined
Repeated
Initial
Maturity Model
3.1 Introduction
Is an American multinational corporation, one of the greatest in the world that designs and
manufactures consumer electronics and computer software products? The company's best-
known hardware products Macintosh computers, iPod, iPhone, software’s including the
Mac OS X operating system, iTunes and other creativity software’s like iWork represent
the face of the music, phone, and computing industry. The company operates more than
250 retail stores in sixteen countries and an online store where hardware and software
products are sold.
The company's hardware products include the iPhone smartphone, the iPad tablet
computer, the Mac personal computer, the iPod portable media player, the Apple Watch
smartwatch, the Apple TV digital media player, and the Home Pod smart speaker.
From 2011 to 2012, Apple released the iPhone 4S and iPhone 5 which featured improved
cameras, an intelligent software assistant named Siri, and cloud-sourced data with
iCloud; the third and fourth generation iPads, which featured Retina displays; and the
iPad Mini, which featured a 7.9-inch screen in contrast to the iPad's 9.7-inch screen.
These launches were successful, with the iPhone 5 (released September 21, 2012)
becoming Apple's biggest iPhone launch with over two million pre-orders and sales of
three million iPads in three days following the launch of the iPad Mini and fourth
generation iPad (released November 3, 2012). Apple also released a third-generation 13-
inch MacBook Pro with a Retina display and new iMac and Mac Mini computers.
3.2 Origins & Ownership
Apple Computer Company was founded on April 1, 1976, by Steve Jobs, Steve Wozniak
and Ronald Wayne. The company's first product was the Apple I, a computer single-
handedly designed and hand-built by Wozniak, and first shown to the public at the
Homebrew Computer Club. Apple Computer, Inc. was incorporated on January 3, 1977,
Without Wayne, who left and sold his share of the company back to Jobs and Wozniak
for $800 only a couple weeks after co-founding Apple.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife,
iWork and professional software. Apple leads the digital music revolution with its iPods
and iTunes online store. Apple has reinvented the mobile phone with its revolutionary
iPhone and App store and is defining the future of mobile media and computing devices
with iPad.
3.3.2 Vision:
The Company's products and services include iPhone, iPad, Mac, iPod, Apple Watch,
Apple TV, a portfolio of consumer and professional software applications, iPhone OS
(iOS), OS X and watchOS operating systems, iCloud, Apple Pay and a range of
accessory, service and support offerings.
3.5 Organizational Structure
Apple organizational structure can be described as hierarchical. Such a structure has been
developed by its founder and former CEO late Steve Jobs.
Apple Inc. never stops learning and creativity to make the enterprise and innovation are
created. That is the best way to adapt to the rapidly changing and stringent requirements
of customers worldwide. Apple has recognized that the way to gain competitive
advantage is to have the ability to innovate again and again within the workplace.
Successful creative organizations say the best way to achieve this is to embrace
participation, collaboration and experimentation. The main characteristic of Apple is their
co-operation and communication within the workplace using a variety of employees from
numerous different backgrounds. This rapid communication enables the knowledge
sharing to be improved as new ideas will be constantly created and developed. Apple
encourages knowledge sharing by creating an environment where all their employees feel
comfortable. This they have achieved by creating a friendly and relaxed atmosphere
within their offices.
Apple Incorporation has formulated the following strategies for the systematic
implication of knowledge management system within the organization;
Identify the key staff groups within the organization. These groups deliver the
greatest business value, or are involved in the most important business activities.
Conduct comprehensive and holistic needs analysis activities with selected staff
groups, to identify key needs and issues.
The above figure shows the conversion of employee's tacit knowledge into
explicit knowledge and stored in an appropriate form. Hence it can be
leverage by making it available to others who need it. Knowledge is the
unstructured data whereas data in data warehouse are structured data.
Unstructured data of an employee helps in creation ofknowledge that can
be transfer through the use of Data warehouse system among other employees
of Apple Incorporation.
4.4.2 Company Intranet
Company intranet is the computer network that uses internet protocol technology to share
information, operational systems or computing services within an organization. By using
intranet apple gains numerous advantage in knowledge sharing techniques, Skills and
practices. It has helped a company on creating internal collaborative culture. It has
benefited over the knowledge management practice as employee can share their new
ideas and insight over the particular subject of the company. It has built two way
communications among the staffs and has empowered the employees. It has helped to
unlock the hidden knowledge. With all tools and information within the intranet, and
employees constantly adding new information in the form of comments, discussions,
blogs, documents; the intranet serves as a centralized place to capture important corporate
information. Tools like search ensure that employees across the company network can
find just the information they need to perform their jobs.
Company intranet has contributed apple to transfer tacit and explicit knowledge within
the employees. Company intranet is the key to unlock the hidden talent and knowledge of
an employee. Therefore use of company intranet has benefited a lot to the company in
knowledge sharing and gaining process to retrieve the intellectual talent of their
employees.
A knowledge Management model that has direct relation to Apple is the Nonaka and
Takeuchi Knowledge SECI Model.
Apple's ability to constrain its secrets so there are limited leaks, despite the fact
that its people leave at the end of every day, and its people are its greatest
resource.
Apple's decision to keep its software specifically and solely for its products, and
vice-versa.
4.7 Apple's Core Competency
Core competencies of any Organization are the assets or expertise which is rare, difficult
to imitate, unique and valuable for customers. Here are some reasons why apple is so
much successful in gaining competitive advantage.
Apple invests heavily in research and development to make its products different
from others.
Attractive design and simple usage attract people towards Apple Products.
All the Apple products are based on latest technology.
Apple Knows when and where to market its products.
Innovative and domain expert human resource.
When customer thinks about Apple the first things come in mind innovative and
unique design.
IPhone, Store, iPod and iPad has been doing well in terms customer acceptance,
revenues and profits.
Every person in the company has access to management and business knowledge
with the help of KMS.
Figure 4.4 Apple's revenue worldwide from 2004 to 2017 (in billion U.S. dollars)
The revenue over the period of time is shown below with the help of figure:
This statistic shows Apple's revenue from 2004-2017, according to the company's own
financial years. In 2016 financial year (October 2015 to September 2016), Apple's
revenue came to a total of 215.64 billion U.S. dollars.
CHAPTER V: SUMMARY, FINDINGS AND CONCLUSIONS
5.1 Summary
Knowledge management (KM) is the process of creating, sharing, using and managing
the knowledge and information of an organization. It refers to a multidisciplinary
approach to achieving organizational objectives by making the best use of knowledge.
Knowledge management efforts typically focus on organizational objectives such as
improved performance, competitive advantage, innovation, the sharing of lessons
learned, integration and continuous improvement of the organization. It helps
organization to address the living knowledge inside the organization, from strategic to
executive and operational level.
It is the challenge for all business Organization to sustain its production and continuous
delivery of product and services to its global customers. Apple Incorporation is one of the
global companies whose business has been operated in hundreds of countries along with
other hardware manufacturer and IT service related Companies. Apple success to gain
competitive advantage with its core competency as well as Knowledge Management
System implemented and formulated with the belief that "knowledge is power". Apple's
Data warehouse, Company Intranet and Expert System are the tools of Knowledge
Management System. KMS helps apple to create great ideas and innovation in the line of
new product development resulting increase the number of sales and sales revenue. The
total revenue of Apple Incorporation in September 2016 is 215.64 billion U.S. dollars.
5.2 Conclusion
Apple's Data Warehouse, Company intranet and Expert System are the vital elements of
KMS. They are used for extraction of data and large information of company including
its customers attributes which then turn into knowledge through the analysis and process
and helps in decision making process. The increment in total revenue of Apple company
helps to indicate that it has achieved the level 5 of Siemens AG KMMM which shows
that Company's KM is perfect and mastered and the KM System adopted by the company
is flexible to external and internal changes. Apple has been benefited through the
implication of KMS inside the organization it has helped to reduce the cost of IT and
facilitate IT staff members stay up to date on various, ever-changing technologies. It has
improved the employee engagement and communication within the organization through
which hidden knowledge are shared and transfer among the employees.
Finally from the above results we can conclude that company's Knowledge Management
System is the major element to achieve Sustainable competitive Advantage.
5.3 Recommendations
REFERENCES
Lee, M. R., & Lan, Y. C. (2011). Toward a unified knowledge management model for
SMEs. Expert systems with applications, 38(1), 729-735.
Ahmed, S., Fiaz, M., & Shoaib, M. (2015). Impact of knowledge management practices on
organizational performance: an empirical study of banking sector in Pakistan.
FWU Journal of Social Sciences, 9(2), 147.
Andreeva, T., & Ikhilchik, I. (2011). Applicability of the SECI model of knowledge
creation in Russian cultural context: theoretical analysis. Knowledge and
Process Management, 18(1), 56-66.
Bhatti, K. K., & Qureshi, T. M. (2007). Impact of employee participation on job satisfaction,
employee commitment and employee productivity. International Review of
Business Research Papers, 3(2), 54-68.
Bueren, A., Schierholz, R., Kolbe, L. M., & Brenner, W. (2005). Improving performance of
customer-processes with knowledge management. Business Process Management
Journal, 11(5), 573-588.
Chou, C. H., Wang, Y. S., & Tang, T. I. (2015). Exploring the determinants of knowledge
adoption in virtual communities: A social influence perspective. International
Journal of Information Management, 35(3), 364-376.
Fierro, J. C., Florin, J., Perez, L., & Whitelock, J. (2011). Inter-firm market orientation as
antecedent of knowledge transfer, innovation and value creation
in networks. Management Decision, 49(3), 444-467.
Guchait, P., Namasivayam, K., & Lei, P. W. (2011). Knowledge management in service
encounters: impact on customers' satisfaction evaluations. Journal of Knowledge
Management, 15(3), 513-527.
Kiessling, T. S., Richey, R. G., Meng, J., & Dabic, M. (2009). Exploring knowledge
management to organizational performance outcomes in a transitional
economy. Journal of world business, 44(4), 421 433.
-
Liao, S. H., & Wu, C. C. (2009). The relationship among knowledge management,
organizational learning, and organizational performance. International Journal of
Business and Management, 4(4), 64.
Palacios Marques, D., & Jose Garrigos Simon, F. (2006). The effect of knowledge
ma na geme nt pra ctice s on firm pe rforma nce . Journal of
know l edge management, 10(3), 143-156.
Wu, I. L., & Chen, J. L. (2014). Knowledge management driven firm performance: The
roles of business process capabilities and organizational learning.
Journal of Knowledge Management, 18(6), 1141-1164.
Zaied, A. N. H., Hussein, G. S., & Hassan, M. M. (2012). The role of knowledge
management in enhancing organizational performance. International journal of
Information engineering and electronic business, 4(5), 27.