Knowledge Management in Malaysia

Knowledge Management in Malaysia CHAPTER TWO: LITERATURE REVIEW 2.1 OVERVIEW It is so difficult and though for the managers of the organizations to apply knowledge management in their departments, because this major is still new in so many aspects such as business environment and organizational culture or behavior and it has a long way to be completed. It is hard for the managers to believe that, it has so many benefits if they use knowledge management tools in their organizations. Managers should bear in their mind that knowledge management is not an automatic practice, it must be initiated by people and have the support of the whole organization. Something like these myths need to be eliminated and the exact meaning of knowledge management must be clearly understood by managers and the rest of the organizations. This will help the managers to abundantly getting help from knowledge management and apply it in the organizations (Sobahle 2005). The study on American Productivity and Quality Centers International Bench-marking shows that, about 11 organizations are working on the knowledge management area which are: Arthur Andersen; Chevron Corporation; Dow Chemical Company; Hughes Space Communications; Kaiser Permanente; Price Waterhouse; Sequent Computer Systems; Skandia AFS; Texas Instruments; USAA; and National Security Agency, the following was recognized (Ishak, 2002): Share the understanding those techniques which can be used. Apply the techniques to new directions. Further more, the other issues which can assure the success of knowledge management initiatives are something like, emphasizes on the issues such as employees issues, top management leadership and commitment, organizational culture and technological infrastructure. This chapter approaches the literature review on knowledge management. In this chapter the try is made to clarify some of the most important key factors of knowledge management and analyze their respective literature. The attempt is made to show the different aspects of knowledge management. It has a brief introduction on knowledge management which is used by Malaysian organizations then it will be explain about the knowledge management frame works and architectures. In this chapter the most two important factors in knowledge management which, technological approach and human approach, are considered. This chapter will finish by the knowledge management concern, issues and at last discuss about the benefit of knowledge management will be considered. 2.2 KNOWLEDGE MANAGEMENT IN MALAYSIA Over past two decades Malaysia has been transitioning from relying on a production based- economy to a knowledge-based economy (Chang, 2005). The concept of knowledge management in Malaysia was born with the establishment of the â€Å"Multimedia Super Corridor (MSC)† in 1990s to accelerate this concept in Malaysia. Actually, there are so many Malaysian companies which they are working on knowledge management and they realize and understand the importance of it in the professional life. In January 15, 2002, one of the prestigious magazines in Malaysia, Computerworld Malaysia organized the Knowledge Management Roundtable ‘A Vital Strategy or Expensive Toy. The participants from various sectors in Malaysia shared their point of views and approaches implemented and exchanged ideas in practicing knowledge management (Chang, 2005). As an example for the practical aspect, there are a number of organizations in Malaysia which are successful in knowledge management initiatives, such as: Malaysian Institute of Microelectronic Systems (MIMOS), MAMPU, Bank Negara Malaysia, Siemens, Nokia Malaysia and Telekom Malaysia, Tenaga Nasional Berhad and Petroleum Nasional Berhad (Petronas) are examples of organizations in Malaysia that have embarked on KM initiatives. There are so many studies on knowledge management in Malaysia, and the structure of Malaysia papers in Malaysia seems to be incomprehensive, there are a few number of out standing articles to mention, which shows in table 2.1. Table 2.1: Knowledge Management: Malaysian Studies Title Author/ Date/Journal Nature of Work Intellectual capital and business performance in Malaysian industries Bontis, Chua Richardson (2000) Journal of Intellectual Capital Research Study (Conducted among Malaysian firms) Knowledge management in healthcare: towards ‘knowledge-driven decision- support services Abidi, (2001) International Journal of Medical Informatics Case Study (Universiti Sains Malaysia Hospital located in Kota Baharu, Malaysia) Managing human resources toward achieving knowledge management Yahya Goh, (2002) Journal of Knowledge Management Research Study (Conducted among Malaysian firms) Knowledge management in a public organization: a study on the relationship between organizational elements and the performance of knowledge transfer. Syed Ikhsan Rowland, (2004) Journal of Knowledge Management Case Study (Ministry of Entrepreneur development of Malaysia) Benchmarking knowledge management in a public organization in Malaysia Syed Ikhsan Rowland, (2004) Benchmarking: An International Journal Case Study (Ministry of Entrepreneur development of Malaysia) An empirical study of perceived importance and actual implementation of knowledge management process in the Malaysian telecommunication industry Chong Yeow, (2005) Proceedings of ICTM Research Study (Study among Malaysian telecommunication Industry KM critical success factors: A comparison of perceived importance versus implementation in Malaysian ICT companies. Chong, (2006) The Learning Organization Research Study (194 Malaysian ICT companies) KM implementation in Malaysian telecommunication industry an empirical analysis. Wei, Choy Yeow, (2006) Industrial Management Data Systems Research Study (289 employees working in Telecommunication organizations in Malaysia) KM implementation and its influence on performance: an empirical evidence from Malaysian multimedia super corridor companies Chong, (2006) Journal of Information and Knowledge Management Research Study (Study among Malaysian multimedia super corridor companies) Exploring KM issues and KM performance outcomes: empirical evidence from Malaysian multimedia super corridor companies Chong Lin (2006) International Journal of Technology Management Research Study (Study among Malaysian multimedia super corridor companies) An exploratory study on knowledge management adoption in the Malaysian Industry. Wong, (2008) International Journal of Business Information Systems Research Study (exploratory KM survey conducted in the Malaysian industry) 2.3 KNOWLEDGE MANAGEMENT IMPLEMENTATION FRAMEWORKS According to Von Krogh (1998), which he takes a business perspective stating that KMS help increase competitiveness, the purpose of implementing KMS in organizations are various. KMS leads to grater innovation and responsiveness, Hackbarth (1998). Davenport and Prusak (1998) provide three reasons why KMS are implemented in organizations which are as follows: Ø To enhance visibility of knowledge in organizations through the use of maps, hypertexts, yellow pages, directories etc. Ø To build a knowledge sharing culture i.e. create avenues for employees to share knowledge. Ø To develop a knowledge infrastructure, not confined to technology solely, rather create an environment that permits collaborative work. These three things which were proposed by Davenport and Prusak (1998) imply that KMS can support an organization in planning for and dealing with emergencies. Many organizations are still wrestling with their knowledge management and failing to realize its full potential. This is due to their lack of the support of strong theoretical foundation to guide them in its implementation (Wong Aspinwall, 2004). Unfortunately, many organizations do not have a clear knowledge management implementation plan in mind (Liebowitz, 1999). Therefore, in order for an organization to be victorious in its effort to manage knowledge, a guiding framework is essential. This is why in this part a review of diverse knowledge management implementation frameworks and models is presented. The framework consents to researchers as well as practitioners to measure the current state of knowledge management effectively and systematically. Thus, the knowledge management framework should provide not only a unified view of knowledge management phenomena but also help investigators study the field of knowledge management in an organized way. There have been few efforts to de velop a framework of knowledge management. However, none of the frameworks can provide a complete and generalized frame for knowledge management by defining fundamental attributes of knowledge management and their interrelationships because knowledge management can be viewed differently on ones background and interests (Chong, 2005). To know the exact value of knowledge management, an architecture of it, would provide the necessary understanding of different components like, knowledge management activities, knowledge management resources, knowledge management influences (Holsapple Joshi, 1997). The improvement of a framework is to follow and track the progress and maturity of knowledge management of an enterprise, so, it would serve to support the industry-wide improvement of knowledge management programs. Further more, it would provide an acceptable frame of reference for the assessment of the adequacies of an organization by government, commercial customers and prime contractors (Chong, 2005). The knowledge management frameworks can be classified under four categories (Table 2.2) Which are namely, knowledge creation framework, knowledge cycle processes of knowledge management, cases on knowledge management initiatives in industry and high-level knowledge management frameworks. Table 2.2: KM Frameworks and their examples in the literature Knowledge Management Frameworks Examples Knowledge Creation Framework Nonaka(1991, 1994), Nonaka Takeuchi (1995) Knowledge Cycle Processes of KM Bose Sugumaran (2003) Cases on KM Initiatives in Industry Apostolou Mentzas (1998), Lai chu (2002) High-Level KM Frameworks Holsapple Joshi (2002), Jarrar (2002), Wiig (1997) Nonaka and Takeuchi are tried to explain the progress and adaption between tacit and explicit knowledge. In fact, knowledge creation framework is not a knowledge management framework, the reason is, and it only deals with the creation of knowledge which is only a share of what constitutes knowledge management. Also, the knowledge cycle processes of knowledge management frameworks are providing a set of activities where the prominence is on the knowledge cycle processes or activities. They mainly address the phases of knowledge flow (from creation to application) in an organization without providing guidance on how to implement knowledge management. The framework on knowledge management initiatives in industry provide a reference to facilitate the structuring, analysis and evaluation of the knowledge management initiatives undertaken in various case companies. Lastly, High-Level knowledge management frameworks are the ones providing more detailed directions on the implementation of kn owledge management. This type of framework seems to address not only the question of what is but also how to because it prescribes and suggest ways for organizations to engage in knowledge management activities (Wong Aspinwall, 2004). In their review of literature, Wong and Aspinwall, try to have an organized review of the various available frameworks for knowledge management implementation. The acceptable thing for the review was to classify the knowledge management implementation frameworks, find out the short comings of each and finally suggesting a through guide line for developing knowledge management implementation frameworks. They have classified the high level knowledge management frameworks as frameworks such as: 1) System approach, 2) Step approach, 3) hybrid approach.(Table 2.3, 2.4, 2.5 shows the comparisons between frameworks under each approach). Table 2.3: Comparisons of system approach frameworks Source: Wong Aspinwall (2004) Holsapple Joshi (2002) Jarrar (2002) Gore Gore (1999) Wiig et al. (1997) Plan - Set strategic priority Define and understand knowledge Formulate vision Conceptualize Reflect Execute - - - Act Evaluate - - - Review Knowledge Types / resources Knowledge embedded in participants, culture, infrastructure, artifacts, purpose and strategy - Tacit Knowledge Explicit knowledge - KM processes / activities Acquire, select, internalize and use knowledge Collect, present, distribute and measure knowledge Mainly focuses on knowledge creation and externalization Develop, distribute, combine and consolidate knowledge KM influences / factors Resource influences, managerial influences, environmental influences Knowledge environment - External and internal developments ‘-, not indicated or not clearly indicated Table 2.4: Comparisons of step approach frameworks Source: Wong Aspinwall (2004) McCampbell et al. (1999) Wiig (1999) Plan Form powerful coalition Communicate vision of KM Establish teams for needs assessment Analyze the needs of KM Obtain management buy-in Survey and map the knowledge landscape Plan the knowledge strategy Create and define knowledge-related alternatives and potential initiatives Portray benefit expectations for knowledge management initiatives Set knowledge management priorities Determine key knowledge requirements Execute Identify and collect knowledge Design a technological structure Test the technology Maintenance of the technology Retest the technology Training of knowledge workers Roll out the use of KM practices Make systems go live Acquire key knowledge Create integrated knowledge transfer programs Transform, distribute and apply knowledge assets Establish and update a KM infrastructure Manage knowledge assets Construct incentive programs Coordinate KM activities and functions enterprise-wide Facilitate knowledge-focused management Evaluate Track usage Measure quality and productivity Measure the performance of KM practices Conduct a need assessment review Monitor knowledge management Knowledge type / resources Internal knowledge External knowledge Can be inferred from the step: â€Å" manage knowledge assets † KM processes / activities Identify and collect knowledge Acquire, transform, distribute and apply knowledge KM influences / factors - Can be inferred from the steps: ‘construct incentive programs and ‘facilitate knowledge-focused management ‘-, not indicated or not clearly indicated Table 2.5: Comparisons of hybrid approach frameworks Source: Wong Aspinwall (2004) Rubenstein Montano et al. (2001) Mentzas (2001) Plan Strategize, Model Awareness plan Execute Act, Transfer Develop, operate Evaluate Revise Measurement Knowledge types / resources Tacit knowledge, Explicit knowledge Knowledge assets KM processes / activities KM tasks Process KM influences / factors Culture, Strategy, learning Strategy, Structure, System By study on these knowledge frameworks creator an absolute knowledge management implementation framework may include the possible accesses on success of knowledge management. Further more, the obstacles and developers should bear in their mind that if they want to analyze managers in regard with, which elements are likely to disrupt the knowledge management implementation success and which elements may enable their effort towards knowledge management achievements. Finally, a knowledge management implementation frame work should â€Å"make a correspondence view among social and technological approach to knowledge management†. Consideration of the authors demonstrate that most of the time this correspondence is disturb in favor of one approach while the other approach is either totally neglected or received incomplete attention (Wong Aspinwall, 2004). Different types of knowledge resources are identified. The activities and processes which can help to manage them should be mentioned in the knowledge management implementation framework. As an example, there is some of knowledge management processes such as: acquiring, capturing, creating, organizing, storing, accessing, transferring, sharing, applying, distributing and using knowledge. The suggested clues by Wong and Aspinwall for developing a knowledge management implementation framework include five factors, which are as follows: (1) Incorporate a clear structure to organize the tasks. (2) Address the different knowledge resources or types. (3) Include the knowledge management processes or activities that manipulate the knowledge. (4) Point out the influences that can affect the performance of knowledge management. (5) Provide a balanced view between a technological and a social perspective. 2.4 KNOWLEDGE MANAGEMENT SYSTEMS CATEGORIZATION 2.4.1 Knowledge Management System Definition Knowledge management system (KMS), are mostly IT based systems for managing knowledge in organizations and are used for supporting, creating, capturing and disseminating of information. The main concept of knowledge management system (KMS) is to make a facility for employees to have an access to the organizations information, sources, document base facts and their solutions. As a matter of fact a knowledge management system (KMS) could be any of the following things: Ø Social computing tools which can help to create a knowledge management system (KMS). Ø Knowledge management system (KMS), assist in creating network maps in organizations which is used in communication among individuals and entities. Ø Document based, any formatted that permits, control, manage. Ø Use Artificial Intelligence (AI), for customized representation schema to demonstrate the problem domain. Further more, the benefits of using knowledge management in organization can be categorized as: 1. Valuable organizational data and information sharing. 2. Reduce redundant work. 3. Decrease time for new incomers like new employees. 4. Retention of intellectual property. Based on this definition Gupta and Sharma (2004) divide knowledge management system into seven major categories, which are as follows (tables 2.6): Table 2.6: Example of KMS Source: Gupta and Sharma (2004) KMS Technology Description Expert Systems, artificial intelligence and knowledge based management system (KBMS) Main purpose of these systems is to capture knowledge and perform analysis on existing knowledge base to assist in decision making. Often associated to rule based and pattern recognition systems. Computer Supported Collaborative Work (Groupware) Systems that permit sharing and collaborative work. Often described synonymously to Lotus Notes. However, one could suggest that asynchronous (e-mail, wikis e-log) and synchronous systems (videoconference, chat) are newer applications that can fall into this category (Bates and Poole, 2003). Groupware can also include Group Support Systems (GSS) that is intended to support groups make decision (Mandviwalla, 1994). Document Management Systems Systems that support the need for managing text and images to make information much more accessible. Similar to the idea of office management systems i.e. use of various word documentation and spreadsheet software. Decision support systems (DSS) Business applications that usually contain summaries of large amounts of data, filtered and synthesized particularly to support strategic decision-making. View records related to this term5. The focus of DSS is on analysis of quantitative data and presentation tools for managers. Semantic Networks The focus is on systems that explain not just relationships between entities but the meaning based on how the entities are structured. Can be used to â€Å"represent domain knowledge explicitly and shared† (Gupta and Sharma, 2004). Relational and Object oriented databases Systems that permit management of both structured (relational) and much more complex data sets (OODBMS) Simulation tools Systems that run computer based simulations for a variety of purposes. 2.4.2 Knowledge Management Architecture Base on Gupta and Sharma (2004) findings, they suggest architecture for knowledge management which has seven levels and it is shown in table 2.7. Table 2.7: Overview of Knowledge Management Architecture Source: Form Gupta, Sharma Hsu (2004) Level Key Activities Customer Knowledge Detailed, knowledge sharing relationships. Understanding the requirements of customers. Identifying new opportunities. Stakeholder Relationships Becoming a better knowledge flows among suppliers, shareholders, employees, community, etc. Use this knowledge to inform key points strategies. Business Environment Insights Systematic environmental scanning including political, economic, technology, social and environmental trends. Competitor analysis. Market intelligence systems. Organizational Memory Knowledge sharing. Best practice databases. Directories of expertise. Online documents, procedures and discussion forums. Intranets. Knowledge in Processes Embedding knowledge into business processes and management. Decision-making. Knowledge in Products and Services Knowledge embedded in products. Surround products with knowledge, e.g., in user guides, and enhanced knowledge intensive services. Knowledge in People Knowledge-sharing fairs. Innovation workshops. Expert and learning networks. Communities of knowledge practice. As it shows above there is a seven layer for knowledge management architecture and each level related to a particular aspect of knowledge management. So, in this regard there is a summarization for this table which summarize the important part of this layers and compact it in just three layers, it is summarized in table 2.8 as follows: Table 2.8: Knowledge Management Architecture Source: Gupta, Sharma Hsu (2004) Layer Level Brief Explanation Data Sources layer According to different data sources which are accessible within organizations, this layer has both internal and external data sources. As an example, data repository, email repository, databases. Knowledge Management Layer The processes of knowledge management layer include acquisition, refinement, storage, retrieval, distribution and presentation of required knowledge. An example would be a knowledge base which assists decision making processes during an emergency situation. Knowledge Presentation Layer This layer represents the interface that forms the basis of interaction between users and the system. This can be called a knowledge portal that can guide decision making in dealing with an emergency situation. The knowledge portal can be designed to support communication, collaboration and information sharing requirement. There is two more explanation in detailed view for knowledge management architecture and knowledge management process model. The most important part in knowledge management architecture and knowledge management process are capturing knowledge, create a new knowledge, share it and distribute it as it is shown in 2.1 and 2.2. 2.4.3 Performance of Information Technology (IT) in Knowledge Management System (KMS) Information Technology (IT), plays an important role in acquire, store, disseminate and manage knowledge than ever before. Alavi and Leidner (2001), proposed an admired framework, which can be used to analyze and test the role of Information technology (IT) in design and fulfillment of any Knowledge Management System (KMS). The table (2.9) which is adapted from Alavi and Leidner (2001), shows the different perspectives of knowledge management initiatives and knowledge management system (KMS), design particularly. Table 2.9: Knowledge Perspective and impact on KM and KMS Source: Alavi and Leidner (2001, p.11) Perspective Meaning Implication for KM Impact on KMS Role in IT Knowledge vis-à  -vis data and information Data is consider as a fact, raw numbers, information is processed/ contextual data/ interpreted data knowledge is personalized information e.g this would entail once experience and exposure. KM initiative should expose employees to relevant information and facilitate assimilation of information. KMS may not necessarily be different from an existing information system. The differences are that any KMS should help employees assimilate the information. Role of IT is to ensure KMS design permits information assimilation. Knowledge as a state of the mind Knowledge is ones state of knowing and understanding. KM initiative should provide an information base that enables individuals to recognize the existence of knowledge. This can enhance individual learning and understanding. Accessibility to where knowledge resides rather than to knowledge itself- i.e. provide a means to an end. This would include web and wireless access to knowledge base. Knowledge as an object Knowledge that is stored and subject to manipulation. KM initiative should permit development and management of knowledge base. IT can support KMS to gather, store, and disseminate knowledge. This would include the use collaborative tools e.g. wikis. Knowledge as a process Knowledge visualized as a process of applying expertise. KM initiative should focus on effective flow of knowledge within the realms of knowledge creation, sharing and dissemination. by providing links to various knowledge sources which includes internal and external sources. This would include use of web based systems, hyperlinks, markup languages and access to databases. The idea is to offer a wider breadth and depth of knowledge flows Knowledge and accessibility to information Knowledge is a condition of access to information. KM initiative should provide ease of access to and retrieval of content in a given system. IT can be used to enhance indexing, query and locating relevant information. Knowledge as a capability As a capability knowledge has the potential to influence action. KM initiative should focus on developing core competencies and understanding the strategic intent of the initiative. It can increase the intellectual capital through development of individual and organizational competencies. Table 2.9 proposed that Information technology plays an important role in knowledge management initiatives in organizations. Alavi and Leidner (2001) defined a knowledge management system (KMS) as IT- based system develop to support and enhance the organizational processes of knowledge creation. They observe that not all knowledge management initiatives will implement an IT solution, but they support IT as an enabler of knowledge management (Raman, M. Muthaiyah, S.). In addition, knowledge management system (KMS) can assist organizations in dealing with dynamic and complex situations such as emergencies (Gupta Sharma, 2004). 2.4.4 Appropriate Theories to Knowledge Management Systems (KMS) This part consists of two theories which can help to design and implement decisions of any knowledge management systems (KMS) to support knowledge management in organizations. Those mentioned theories are, Information Processing Theory (IPT), and, Contingency Theory. 2.4.4.1 Information Processing Theory (IPT) George A. Miller (1956), has afforded two theoretical ideas which are the basic concepts of the information processing framework and cognitive psychology. The first approach is â€Å"chunking† and the capacity of short term memory. He insists that short term memory can get just 5-9 chunks of information (seven plus or minus two). A chunk could refer to digits, words, peoples faces or any other meaningful units. The second idea which Miller was mentioned is people process information akin to a computerized system. They take input into the memory like the computer, then the human minds take the information, analyze it, store the content and locate it in the best situation of memory and then retrieve as and when needed based on the given situation. In this context, Burnell (2004), state that:†As diversity of resources, processes or outputs increase inter process coordination requirements and system complexity increase. As uncertainty increases, information processing requirements increases become of managements inability to predict every situation.† Information processing theory is widely applied in the study of human learning and cognitive styles (Miller, 1960). As a matter of fact Information Processing Theory (IPT) has some principles which are often applied by instructors for the following reasons: Ø Gain the students attention Ø Point out important and critical chunks of information, separating them from trivial ones. Ø Provide opportunities for students in linking new to existing information. Ø Presenting information in clear manner. Ø Emphasize on meaning of information i.e. not memorizing them. Actually, those mentioned principles for information processing theory can be applied to design of knowledge management system (KMS) to support emergency preparedness as well (Kostman, 2004). Particularly, in approaching emergency situations, knowledge management system can be elaborated to enable decision makers to: Ø Retrieve information that is critical, quickly. Ø Focus on the situation without being loss amidst voluminous information. Ø Create and share a knowledge base by linking past experience to existing information base. Ø Structure emergency related information clearly. Ø Understand different meaning and interpretation of critical terminology used in dealing with an emergency. 2.4.4.2 Contingency Theory Contingency theory was founded by Lawrence and Lorsch (1967), in the study of ten firms in plastic, food, containers, which are three different i Knowledge Management in Malaysia Knowledge Management in Malaysia CHAPTER TWO: LITERATURE REVIEW 2.1 OVERVIEW It is so difficult and though for the managers of the organizations to apply knowledge management in their departments, because this major is still new in so many aspects such as business environment and organizational culture or behavior and it has a long way to be completed. It is hard for the managers to believe that, it has so many benefits if they use knowledge management tools in their organizations. Managers should bear in their mind that knowledge management is not an automatic practice, it must be initiated by people and have the support of the whole organization. Something like these myths need to be eliminated and the exact meaning of knowledge management must be clearly understood by managers and the rest of the organizations. This will help the managers to abundantly getting help from knowledge management and apply it in the organizations (Sobahle 2005). The study on American Productivity and Quality Centers International Bench-marking shows that, about 11 organizations are working on the knowledge management area which are: Arthur Andersen; Chevron Corporation; Dow Chemical Company; Hughes Space Communications; Kaiser Permanente; Price Waterhouse; Sequent Computer Systems; Skandia AFS; Texas Instruments; USAA; and National Security Agency, the following was recognized (Ishak, 2002): Share the understanding those techniques which can be used. Apply the techniques to new directions. Further more, the other issues which can assure the success of knowledge management initiatives are something like, emphasizes on the issues such as employees issues, top management leadership and commitment, organizational culture and technological infrastructure. This chapter approaches the literature review on knowledge management. In this chapter the try is made to clarify some of the most important key factors of knowledge management and analyze their respective literature. The attempt is made to show the different aspects of knowledge management. It has a brief introduction on knowledge management which is used by Malaysian organizations then it will be explain about the knowledge management frame works and architectures. In this chapter the most two important factors in knowledge management which, technological approach and human approach, are considered. This chapter will finish by the knowledge management concern, issues and at last discuss about the benefit of knowledge management will be considered. 2.2 KNOWLEDGE MANAGEMENT IN MALAYSIA Over past two decades Malaysia has been transitioning from relying on a production based- economy to a knowledge-based economy (Chang, 2005). The concept of knowledge management in Malaysia was born with the establishment of the â€Å"Multimedia Super Corridor (MSC)† in 1990s to accelerate this concept in Malaysia. Actually, there are so many Malaysian companies which they are working on knowledge management and they realize and understand the importance of it in the professional life. In January 15, 2002, one of the prestigious magazines in Malaysia, Computerworld Malaysia organized the Knowledge Management Roundtable ‘A Vital Strategy or Expensive Toy. The participants from various sectors in Malaysia shared their point of views and approaches implemented and exchanged ideas in practicing knowledge management (Chang, 2005). As an example for the practical aspect, there are a number of organizations in Malaysia which are successful in knowledge management initiatives, such as: Malaysian Institute of Microelectronic Systems (MIMOS), MAMPU, Bank Negara Malaysia, Siemens, Nokia Malaysia and Telekom Malaysia, Tenaga Nasional Berhad and Petroleum Nasional Berhad (Petronas) are examples of organizations in Malaysia that have embarked on KM initiatives. There are so many studies on knowledge management in Malaysia, and the structure of Malaysia papers in Malaysia seems to be incomprehensive, there are a few number of out standing articles to mention, which shows in table 2.1. Table 2.1: Knowledge Management: Malaysian Studies Title Author/ Date/Journal Nature of Work Intellectual capital and business performance in Malaysian industries Bontis, Chua Richardson (2000) Journal of Intellectual Capital Research Study (Conducted among Malaysian firms) Knowledge management in healthcare: towards ‘knowledge-driven decision- support services Abidi, (2001) International Journal of Medical Informatics Case Study (Universiti Sains Malaysia Hospital located in Kota Baharu, Malaysia) Managing human resources toward achieving knowledge management Yahya Goh, (2002) Journal of Knowledge Management Research Study (Conducted among Malaysian firms) Knowledge management in a public organization: a study on the relationship between organizational elements and the performance of knowledge transfer. Syed Ikhsan Rowland, (2004) Journal of Knowledge Management Case Study (Ministry of Entrepreneur development of Malaysia) Benchmarking knowledge management in a public organization in Malaysia Syed Ikhsan Rowland, (2004) Benchmarking: An International Journal Case Study (Ministry of Entrepreneur development of Malaysia) An empirical study of perceived importance and actual implementation of knowledge management process in the Malaysian telecommunication industry Chong Yeow, (2005) Proceedings of ICTM Research Study (Study among Malaysian telecommunication Industry KM critical success factors: A comparison of perceived importance versus implementation in Malaysian ICT companies. Chong, (2006) The Learning Organization Research Study (194 Malaysian ICT companies) KM implementation in Malaysian telecommunication industry an empirical analysis. Wei, Choy Yeow, (2006) Industrial Management Data Systems Research Study (289 employees working in Telecommunication organizations in Malaysia) KM implementation and its influence on performance: an empirical evidence from Malaysian multimedia super corridor companies Chong, (2006) Journal of Information and Knowledge Management Research Study (Study among Malaysian multimedia super corridor companies) Exploring KM issues and KM performance outcomes: empirical evidence from Malaysian multimedia super corridor companies Chong Lin (2006) International Journal of Technology Management Research Study (Study among Malaysian multimedia super corridor companies) An exploratory study on knowledge management adoption in the Malaysian Industry. Wong, (2008) International Journal of Business Information Systems Research Study (exploratory KM survey conducted in the Malaysian industry) 2.3 KNOWLEDGE MANAGEMENT IMPLEMENTATION FRAMEWORKS According to Von Krogh (1998), which he takes a business perspective stating that KMS help increase competitiveness, the purpose of implementing KMS in organizations are various. KMS leads to grater innovation and responsiveness, Hackbarth (1998). Davenport and Prusak (1998) provide three reasons why KMS are implemented in organizations which are as follows: Ø To enhance visibility of knowledge in organizations through the use of maps, hypertexts, yellow pages, directories etc. Ø To build a knowledge sharing culture i.e. create avenues for employees to share knowledge. Ø To develop a knowledge infrastructure, not confined to technology solely, rather create an environment that permits collaborative work. These three things which were proposed by Davenport and Prusak (1998) imply that KMS can support an organization in planning for and dealing with emergencies. Many organizations are still wrestling with their knowledge management and failing to realize its full potential. This is due to their lack of the support of strong theoretical foundation to guide them in its implementation (Wong Aspinwall, 2004). Unfortunately, many organizations do not have a clear knowledge management implementation plan in mind (Liebowitz, 1999). Therefore, in order for an organization to be victorious in its effort to manage knowledge, a guiding framework is essential. This is why in this part a review of diverse knowledge management implementation frameworks and models is presented. The framework consents to researchers as well as practitioners to measure the current state of knowledge management effectively and systematically. Thus, the knowledge management framework should provide not only a unified view of knowledge management phenomena but also help investigators study the field of knowledge management in an organized way. There have been few efforts to de velop a framework of knowledge management. However, none of the frameworks can provide a complete and generalized frame for knowledge management by defining fundamental attributes of knowledge management and their interrelationships because knowledge management can be viewed differently on ones background and interests (Chong, 2005). To know the exact value of knowledge management, an architecture of it, would provide the necessary understanding of different components like, knowledge management activities, knowledge management resources, knowledge management influences (Holsapple Joshi, 1997). The improvement of a framework is to follow and track the progress and maturity of knowledge management of an enterprise, so, it would serve to support the industry-wide improvement of knowledge management programs. Further more, it would provide an acceptable frame of reference for the assessment of the adequacies of an organization by government, commercial customers and prime contractors (Chong, 2005). The knowledge management frameworks can be classified under four categories (Table 2.2) Which are namely, knowledge creation framework, knowledge cycle processes of knowledge management, cases on knowledge management initiatives in industry and high-level knowledge management frameworks. Table 2.2: KM Frameworks and their examples in the literature Knowledge Management Frameworks Examples Knowledge Creation Framework Nonaka(1991, 1994), Nonaka Takeuchi (1995) Knowledge Cycle Processes of KM Bose Sugumaran (2003) Cases on KM Initiatives in Industry Apostolou Mentzas (1998), Lai chu (2002) High-Level KM Frameworks Holsapple Joshi (2002), Jarrar (2002), Wiig (1997) Nonaka and Takeuchi are tried to explain the progress and adaption between tacit and explicit knowledge. In fact, knowledge creation framework is not a knowledge management framework, the reason is, and it only deals with the creation of knowledge which is only a share of what constitutes knowledge management. Also, the knowledge cycle processes of knowledge management frameworks are providing a set of activities where the prominence is on the knowledge cycle processes or activities. They mainly address the phases of knowledge flow (from creation to application) in an organization without providing guidance on how to implement knowledge management. The framework on knowledge management initiatives in industry provide a reference to facilitate the structuring, analysis and evaluation of the knowledge management initiatives undertaken in various case companies. Lastly, High-Level knowledge management frameworks are the ones providing more detailed directions on the implementation of kn owledge management. This type of framework seems to address not only the question of what is but also how to because it prescribes and suggest ways for organizations to engage in knowledge management activities (Wong Aspinwall, 2004). In their review of literature, Wong and Aspinwall, try to have an organized review of the various available frameworks for knowledge management implementation. The acceptable thing for the review was to classify the knowledge management implementation frameworks, find out the short comings of each and finally suggesting a through guide line for developing knowledge management implementation frameworks. They have classified the high level knowledge management frameworks as frameworks such as: 1) System approach, 2) Step approach, 3) hybrid approach.(Table 2.3, 2.4, 2.5 shows the comparisons between frameworks under each approach). Table 2.3: Comparisons of system approach frameworks Source: Wong Aspinwall (2004) Holsapple Joshi (2002) Jarrar (2002) Gore Gore (1999) Wiig et al. (1997) Plan - Set strategic priority Define and understand knowledge Formulate vision Conceptualize Reflect Execute - - - Act Evaluate - - - Review Knowledge Types / resources Knowledge embedded in participants, culture, infrastructure, artifacts, purpose and strategy - Tacit Knowledge Explicit knowledge - KM processes / activities Acquire, select, internalize and use knowledge Collect, present, distribute and measure knowledge Mainly focuses on knowledge creation and externalization Develop, distribute, combine and consolidate knowledge KM influences / factors Resource influences, managerial influences, environmental influences Knowledge environment - External and internal developments ‘-, not indicated or not clearly indicated Table 2.4: Comparisons of step approach frameworks Source: Wong Aspinwall (2004) McCampbell et al. (1999) Wiig (1999) Plan Form powerful coalition Communicate vision of KM Establish teams for needs assessment Analyze the needs of KM Obtain management buy-in Survey and map the knowledge landscape Plan the knowledge strategy Create and define knowledge-related alternatives and potential initiatives Portray benefit expectations for knowledge management initiatives Set knowledge management priorities Determine key knowledge requirements Execute Identify and collect knowledge Design a technological structure Test the technology Maintenance of the technology Retest the technology Training of knowledge workers Roll out the use of KM practices Make systems go live Acquire key knowledge Create integrated knowledge transfer programs Transform, distribute and apply knowledge assets Establish and update a KM infrastructure Manage knowledge assets Construct incentive programs Coordinate KM activities and functions enterprise-wide Facilitate knowledge-focused management Evaluate Track usage Measure quality and productivity Measure the performance of KM practices Conduct a need assessment review Monitor knowledge management Knowledge type / resources Internal knowledge External knowledge Can be inferred from the step: â€Å" manage knowledge assets † KM processes / activities Identify and collect knowledge Acquire, transform, distribute and apply knowledge KM influences / factors - Can be inferred from the steps: ‘construct incentive programs and ‘facilitate knowledge-focused management ‘-, not indicated or not clearly indicated Table 2.5: Comparisons of hybrid approach frameworks Source: Wong Aspinwall (2004) Rubenstein Montano et al. (2001) Mentzas (2001) Plan Strategize, Model Awareness plan Execute Act, Transfer Develop, operate Evaluate Revise Measurement Knowledge types / resources Tacit knowledge, Explicit knowledge Knowledge assets KM processes / activities KM tasks Process KM influences / factors Culture, Strategy, learning Strategy, Structure, System By study on these knowledge frameworks creator an absolute knowledge management implementation framework may include the possible accesses on success of knowledge management. Further more, the obstacles and developers should bear in their mind that if they want to analyze managers in regard with, which elements are likely to disrupt the knowledge management implementation success and which elements may enable their effort towards knowledge management achievements. Finally, a knowledge management implementation frame work should â€Å"make a correspondence view among social and technological approach to knowledge management†. Consideration of the authors demonstrate that most of the time this correspondence is disturb in favor of one approach while the other approach is either totally neglected or received incomplete attention (Wong Aspinwall, 2004). Different types of knowledge resources are identified. The activities and processes which can help to manage them should be mentioned in the knowledge management implementation framework. As an example, there is some of knowledge management processes such as: acquiring, capturing, creating, organizing, storing, accessing, transferring, sharing, applying, distributing and using knowledge. The suggested clues by Wong and Aspinwall for developing a knowledge management implementation framework include five factors, which are as follows: (1) Incorporate a clear structure to organize the tasks. (2) Address the different knowledge resources or types. (3) Include the knowledge management processes or activities that manipulate the knowledge. (4) Point out the influences that can affect the performance of knowledge management. (5) Provide a balanced view between a technological and a social perspective. 2.4 KNOWLEDGE MANAGEMENT SYSTEMS CATEGORIZATION 2.4.1 Knowledge Management System Definition Knowledge management system (KMS), are mostly IT based systems for managing knowledge in organizations and are used for supporting, creating, capturing and disseminating of information. The main concept of knowledge management system (KMS) is to make a facility for employees to have an access to the organizations information, sources, document base facts and their solutions. As a matter of fact a knowledge management system (KMS) could be any of the following things: Ø Social computing tools which can help to create a knowledge management system (KMS). Ø Knowledge management system (KMS), assist in creating network maps in organizations which is used in communication among individuals and entities. Ø Document based, any formatted that permits, control, manage. Ø Use Artificial Intelligence (AI), for customized representation schema to demonstrate the problem domain. Further more, the benefits of using knowledge management in organization can be categorized as: 1. Valuable organizational data and information sharing. 2. Reduce redundant work. 3. Decrease time for new incomers like new employees. 4. Retention of intellectual property. Based on this definition Gupta and Sharma (2004) divide knowledge management system into seven major categories, which are as follows (tables 2.6): Table 2.6: Example of KMS Source: Gupta and Sharma (2004) KMS Technology Description Expert Systems, artificial intelligence and knowledge based management system (KBMS) Main purpose of these systems is to capture knowledge and perform analysis on existing knowledge base to assist in decision making. Often associated to rule based and pattern recognition systems. Computer Supported Collaborative Work (Groupware) Systems that permit sharing and collaborative work. Often described synonymously to Lotus Notes. However, one could suggest that asynchronous (e-mail, wikis e-log) and synchronous systems (videoconference, chat) are newer applications that can fall into this category (Bates and Poole, 2003). Groupware can also include Group Support Systems (GSS) that is intended to support groups make decision (Mandviwalla, 1994). Document Management Systems Systems that support the need for managing text and images to make information much more accessible. Similar to the idea of office management systems i.e. use of various word documentation and spreadsheet software. Decision support systems (DSS) Business applications that usually contain summaries of large amounts of data, filtered and synthesized particularly to support strategic decision-making. View records related to this term5. The focus of DSS is on analysis of quantitative data and presentation tools for managers. Semantic Networks The focus is on systems that explain not just relationships between entities but the meaning based on how the entities are structured. Can be used to â€Å"represent domain knowledge explicitly and shared† (Gupta and Sharma, 2004). Relational and Object oriented databases Systems that permit management of both structured (relational) and much more complex data sets (OODBMS) Simulation tools Systems that run computer based simulations for a variety of purposes. 2.4.2 Knowledge Management Architecture Base on Gupta and Sharma (2004) findings, they suggest architecture for knowledge management which has seven levels and it is shown in table 2.7. Table 2.7: Overview of Knowledge Management Architecture Source: Form Gupta, Sharma Hsu (2004) Level Key Activities Customer Knowledge Detailed, knowledge sharing relationships. Understanding the requirements of customers. Identifying new opportunities. Stakeholder Relationships Becoming a better knowledge flows among suppliers, shareholders, employees, community, etc. Use this knowledge to inform key points strategies. Business Environment Insights Systematic environmental scanning including political, economic, technology, social and environmental trends. Competitor analysis. Market intelligence systems. Organizational Memory Knowledge sharing. Best practice databases. Directories of expertise. Online documents, procedures and discussion forums. Intranets. Knowledge in Processes Embedding knowledge into business processes and management. Decision-making. Knowledge in Products and Services Knowledge embedded in products. Surround products with knowledge, e.g., in user guides, and enhanced knowledge intensive services. Knowledge in People Knowledge-sharing fairs. Innovation workshops. Expert and learning networks. Communities of knowledge practice. As it shows above there is a seven layer for knowledge management architecture and each level related to a particular aspect of knowledge management. So, in this regard there is a summarization for this table which summarize the important part of this layers and compact it in just three layers, it is summarized in table 2.8 as follows: Table 2.8: Knowledge Management Architecture Source: Gupta, Sharma Hsu (2004) Layer Level Brief Explanation Data Sources layer According to different data sources which are accessible within organizations, this layer has both internal and external data sources. As an example, data repository, email repository, databases. Knowledge Management Layer The processes of knowledge management layer include acquisition, refinement, storage, retrieval, distribution and presentation of required knowledge. An example would be a knowledge base which assists decision making processes during an emergency situation. Knowledge Presentation Layer This layer represents the interface that forms the basis of interaction between users and the system. This can be called a knowledge portal that can guide decision making in dealing with an emergency situation. The knowledge portal can be designed to support communication, collaboration and information sharing requirement. There is two more explanation in detailed view for knowledge management architecture and knowledge management process model. The most important part in knowledge management architecture and knowledge management process are capturing knowledge, create a new knowledge, share it and distribute it as it is shown in 2.1 and 2.2. 2.4.3 Performance of Information Technology (IT) in Knowledge Management System (KMS) Information Technology (IT), plays an important role in acquire, store, disseminate and manage knowledge than ever before. Alavi and Leidner (2001), proposed an admired framework, which can be used to analyze and test the role of Information technology (IT) in design and fulfillment of any Knowledge Management System (KMS). The table (2.9) which is adapted from Alavi and Leidner (2001), shows the different perspectives of knowledge management initiatives and knowledge management system (KMS), design particularly. Table 2.9: Knowledge Perspective and impact on KM and KMS Source: Alavi and Leidner (2001, p.11) Perspective Meaning Implication for KM Impact on KMS Role in IT Knowledge vis-à  -vis data and information Data is consider as a fact, raw numbers, information is processed/ contextual data/ interpreted data knowledge is personalized information e.g this would entail once experience and exposure. KM initiative should expose employees to relevant information and facilitate assimilation of information. KMS may not necessarily be different from an existing information system. The differences are that any KMS should help employees assimilate the information. Role of IT is to ensure KMS design permits information assimilation. Knowledge as a state of the mind Knowledge is ones state of knowing and understanding. KM initiative should provide an information base that enables individuals to recognize the existence of knowledge. This can enhance individual learning and understanding. Accessibility to where knowledge resides rather than to knowledge itself- i.e. provide a means to an end. This would include web and wireless access to knowledge base. Knowledge as an object Knowledge that is stored and subject to manipulation. KM initiative should permit development and management of knowledge base. IT can support KMS to gather, store, and disseminate knowledge. This would include the use collaborative tools e.g. wikis. Knowledge as a process Knowledge visualized as a process of applying expertise. KM initiative should focus on effective flow of knowledge within the realms of knowledge creation, sharing and dissemination. by providing links to various knowledge sources which includes internal and external sources. This would include use of web based systems, hyperlinks, markup languages and access to databases. The idea is to offer a wider breadth and depth of knowledge flows Knowledge and accessibility to information Knowledge is a condition of access to information. KM initiative should provide ease of access to and retrieval of content in a given system. IT can be used to enhance indexing, query and locating relevant information. Knowledge as a capability As a capability knowledge has the potential to influence action. KM initiative should focus on developing core competencies and understanding the strategic intent of the initiative. It can increase the intellectual capital through development of individual and organizational competencies. Table 2.9 proposed that Information technology plays an important role in knowledge management initiatives in organizations. Alavi and Leidner (2001) defined a knowledge management system (KMS) as IT- based system develop to support and enhance the organizational processes of knowledge creation. They observe that not all knowledge management initiatives will implement an IT solution, but they support IT as an enabler of knowledge management (Raman, M. Muthaiyah, S.). In addition, knowledge management system (KMS) can assist organizations in dealing with dynamic and complex situations such as emergencies (Gupta Sharma, 2004). 2.4.4 Appropriate Theories to Knowledge Management Systems (KMS) This part consists of two theories which can help to design and implement decisions of any knowledge management systems (KMS) to support knowledge management in organizations. Those mentioned theories are, Information Processing Theory (IPT), and, Contingency Theory. 2.4.4.1 Information Processing Theory (IPT) George A. Miller (1956), has afforded two theoretical ideas which are the basic concepts of the information processing framework and cognitive psychology. The first approach is â€Å"chunking† and the capacity of short term memory. He insists that short term memory can get just 5-9 chunks of information (seven plus or minus two). A chunk could refer to digits, words, peoples faces or any other meaningful units. The second idea which Miller was mentioned is people process information akin to a computerized system. They take input into the memory like the computer, then the human minds take the information, analyze it, store the content and locate it in the best situation of memory and then retrieve as and when needed based on the given situation. In this context, Burnell (2004), state that:†As diversity of resources, processes or outputs increase inter process coordination requirements and system complexity increase. As uncertainty increases, information processing requirements increases become of managements inability to predict every situation.† Information processing theory is widely applied in the study of human learning and cognitive styles (Miller, 1960). As a matter of fact Information Processing Theory (IPT) has some principles which are often applied by instructors for the following reasons: Ø Gain the students attention Ø Point out important and critical chunks of information, separating them from trivial ones. Ø Provide opportunities for students in linking new to existing information. Ø Presenting information in clear manner. Ø Emphasize on meaning of information i.e. not memorizing them. Actually, those mentioned principles for information processing theory can be applied to design of knowledge management system (KMS) to support emergency preparedness as well (Kostman, 2004). Particularly, in approaching emergency situations, knowledge management system can be elaborated to enable decision makers to: Ø Retrieve information that is critical, quickly. Ø Focus on the situation without being loss amidst voluminous information. Ø Create and share a knowledge base by linking past experience to existing information base. Ø Structure emergency related information clearly. Ø Understand different meaning and interpretation of critical terminology used in dealing with an emergency. 2.4.4.2 Contingency Theory Contingency theory was founded by Lawrence and Lorsch (1967), in the study of ten firms in plastic, food, containers, which are three different i

The New Proposition To Customers Marketing Essay

The New Proposition To Customers Marketing Essay Strategic CRM focuses on the development of a customer-centric business culture. This culture is dedicated to winning and keeping customers by creating and delivering value better than competitors (Buttle, 2009, p.5). The culture is reflected in: Leadership behaviors Design of formal systems of the company (who reports to whom) Myths and other stories that are created within the firm Product-oriented One assumes that consumers choose products with the best quality, performance, design or features. Isaac Andik introduced a new concept characterized by fashion, design, image and a good price-to-quality ration. The companys goal is to dress a young, urban clientele in high quality on the latest trends clothes, at an affordable price. The main reason for the companys success is the satisfaction and loyalty its customers. Exclusive quality control at all stages of the production chain allows the company to assure certain quality standards and consequently customer satisfaction. Production-oriented Mango deals with the whole production process starting from the products design to the reaching the end customers. This process includes designing, manufacturing, distribution and commercialization. In order to keep operating costs low and develop low-cost routs to the market, Mango itself does not manufacture its products; it makes samples and prototypes and then subcontracts to suppliers-manufactures. Collections are mainly produced in China (approximately 45%), Morocco (23%) and in other countries as Turkey, Vietnam or India. Mango launches a total of 4 collections annually. Mango now reduces its products prices by 20%, in order to maintain their market position during the economic instability. Sales-orientated Mango invests in advertising, sales promotion, Public Relation and the social media in order to attract new or current consumers and persuade them to buy. Marketing expenses of Mango are reaching 4 % of the turnover, whereas the main competitor Zara spends only 0,3% of total turnover on marketing. Customer/market-oriented A customer or market-oriented company uses information from its customer and competitor to develop better value proposition. To be up-to-date with the marketplace and customer preferences Mango owns a product distribution department that is responsible for collecting the data from customer and competitor profiles. As a result it defines the most appropriate product that adapts to customer requirements and competitive conditions. One of the most essential leading factors of Mango is putting the customers need and wants at first. The most significant sustainability aspects of Mango are: New proposition to customers According to the Fashionmag (FMAG, 2011), Mango starts a large-scale project, such as Mango City in LicadAmunt that is held by the Catalan brand. This project will take nearly five year to complete and starts mid-February. The centre will consist of 333,000 square meters, where 280,000 assign for companies, 60,000 for service sector and remaining 10,000 for outlet area. In addition Mango had already invested 45 million euros on totally automated logistic center of 24,000 square meters that opened in November 2008. Due to The Hangar that is located near the head office helped the company to triple the previous distribution capacity. Innovations are always present in MANGO. One of the upcoming strategies is launching mens collections (HE by Mango). It is a limited edition (Mango VIP) and by this Mango attracts a new target market and thereby increases profits. The question that arises is whether it is possible to launch an exclusive collection with increased prices while the economy stagnates. However it is still unclear whether or not this collection will attract male customers. Loyal to original Mango exhibits clothes in comfortable stores-boutiques that are part of an international chain. Further the company wants to represent the mindset of a boutique. In order to achieve this goal, own teams of window-dressers, coordinators and supervisors travel around to ensure that all stores (own and franchises) sell the same atmosphere and image. The companys objectives are to dress a young, urban clientele in high quality clothes of latest trends, at an affordable price. The mission is To be present in all the cities of the world. Due to this mission statement Mango managed to open 1200 stores (both franchises and their own) around the world at the rate of three per week (Ceeman, 2009). By the end of 2007 Mango generated profits of 1,020 million Euros out of which exports make up 76%. At that time Mango was employing 7,786 employees (1,850 of which worked in head office). Environmentally friendly The retail engine software of Mango is completely automatic and allows to manage design, supply, manufacture, sales and after sale. The document delivery, control, space reservation and transport management can be done through the IT platforms. Firstly, these innovations help Mango reducing environmental pollution and delivery time. They are fast in use and also speed up distribution of products. Secondly, they reduce the transport costs and finally reduce the infrastructure costs, as the company is growing worldwide. Corruption Mango is against corruption and ready to fight it in all forms, including extortion and bribery. CRM strategy The CRM strategy is a sophisticated action plan that aligns people, processes and technology to achieve customer-related goals (Buttle, 2009, p.65). In order to analyze the current use of customer relationship management strategy the following points should be identified. Situation Analysis Target market Mango mainly serves one specific market segment. The only customer services Mango provides are advices, suggestions, complains and obtaining customers points for improvements. The service is directly provided in the store by specially trained sales personnel. Customer turnover In 2010 Mango has achieved 301 million euro as a domestic turnover and 1.284 billion euro as international one. Customer satisfaction In 2010 a total of 100,157 requests were handled, where 1% was Fax/Letter, 4% Via chat, 32% Telephone calls, 63% E-mail/Website. The sources of this data are consumers, stores, the head office, staff, etc. The main topics were 1% Suggestions, 1% Congratulations, 19% Complaints and 79% Request for Information (MANGO, 2010). Market share Mango is the second-largest exporter in the textile sector. Within Spain Mango has more than 2,000 stores. Moreover the franchise spreads over 140 countries with 10,000 employees working worldwide. The market share of MANGO is 2.6% whereas Zara has 9.8% and HM got 3.2%. Market Offerings The main competitors of Mango are Zara and HM. Due to different style/design offerings every company is having its own success. Channels (direct/indirect channels of distribution) As mentioned before Mango deals with the whole process starting from the products design to reaching the end customers. This process includes designing, manufacturing, distribution and commercialization. Mango itself does not manufacture its products, it makes samples and prototypes and then subcontracts external manufactures. Thereby Mango uses indirect channel distribution, since it does not provide products directly to the consumers. However Mango offers online services. Customers can order directly from the website. Thus the company sells directly by placing huge orders. Cross-sell Up-sell Mango is cross-sell, as it is cloth fashion industry. Up-sell is the sale of one product followed by an active offering of the additional one to the consumer. In contrast to this cross-sell is selling similar or related products to the same clientele. Mango offers over 2,500 styles every season. Furthermore clothes designs slightly differ in order to even more satisfied the customers with the purchase. Thereby Mango uses cross-sell where customer can choose the type, design and the cloth style in a more or less individual manner. Since 2004 Mango had implemented a new direct delivery logistics system that allows products made by suppliers be directly distributed to the stores. It does not require delivery thought the distribution center in Barcelona. Such cross-docking procedure has increased production by 30% in 2007. CRM Priorities Goal Mango requires a CRM strategy in order to reach goals such as cost reduction, revenue enhance and increased customer loyalty/satisfaction. Cost reduction Reduce marketing costs Increase supplier loyalty Increase profit margin Reduce cost of sales Revenue enhance Improve lead quality and conversation Increase acquisition of new customers Increase marketing responses rates Acquire new customers Increase sales revenue Loyalty, Satisfaction Increase customer loyalty Increase customer retention Increase customer satisfaction The overall CRM project has low costs and can result in quick wins, fast returns and if possible with the long-term priorities. Strategic benefits Mango can implement its CRM strategy by developing and improving a customer/market-oriented strategy. As a result the company will be able to provide better customer experiences, improve information flow among the business silos and customer service. Current CRM systems use E-Commerce Catalog Web Storefront Inventory Information Product Information Management Business Process Management Customer Service Community Management Contact Center/Call Center Q/A, Monitoring E-Mail Response Unified Communications Sales Sales Configuration Pricing Management Order Management Lead Management Marketing E-marketing Marketing Resources Management Analytics In-Line, Event Driven Sales, Service, Web Personal Productivity Operational CRM Operational CRM automates and improves customer-facing and customer-supporting business processes (Buttle, 2009, p.7). The main tools of operational CRM are software applications. The software enables Mango to automate marketing, selling and service functions. Marketing automation Marketing automation applies technology which allow marketers to analyze the customer-related data in order to develop, execute and evaluate targeted communications. Event-based/Trigger Marketing Mango arranges seasonal sales for the customers in summer and winter holidays. Seasonal sale is used in order to attract more customers during these periods. Two times annually Mango sets up fashion shows and also runes competitions for young clothing designers around the world. The winners are promised to win a price of 300,000 Euro and the prestige of the collection being sold in mangos stores (Ceeman, 2009). Multichannel Environment In 2011 Mango was able to increase its turnover by 11% and announced plans to expand in 2012. Mango was focusing mainly on Eastern Europe, the Middle East and Asia including Sri Lanka and Cambodia. During that year Mango opened 644 new stores and planned to open new retail outlets 80 in China and 30 in Russia(FMAG, 2012). In order to be on track with all the new changes of the fashion world, Mango invites and cooperates with famous personalities. Mangos idea is to connect the collection with a famous person such as Naomi Campbell or Claudia Schiffer. Some of the models tried their designing skills in Mango collections such as Mila Jovivich and Penelope Cruz. Mango invites famous faces, models and actors to take part in the marketing campaigns. Further the aim is to create intangible extra glamour, beauty and a connection with the celebrities. Sale-force automation Sale-force automation software enables companies to automatically assign leads and track opportunities of selling activities. In order to maintain a constant flow of communication with different media, Mangos press office supplies all information that is needed. For instance in 2010 a total of 200 press communications were carried out and 90 media interviews had taken place (MANGO, 2010). Mango has a centralized organizational structure that means that it avoids investments in facilities and warehouses and has one central office in Barcelona. Due to this fact Mango is strongly committed to the development of new technology platforms that help to be on track with all the selling points, manufacturers and franchises around the world. By using new technology Mango can manage, make decisions and communicate very easily. The retail engine of Mango completely automatic and allows to manage design, supply, manufacture, sale and after sale. With the help of Internet and special software Mango connects with stores and gets constant information on the stock held by each store. Through the computer applications the head office can adjust changes to their franchises. The stock transfers and replacements can be done daily among the stores. The document delivery, control, space reservation and transport management can be done through the IT platforms. These innovations are helping Mango in firstly, reducing delivery time and are fast in use and also speed up distribution of products. Secondly, they reduce the transport costs and thirdly reduce the infrastructure costs, as the company is growing worldwide. In addition Mango also rolled out a system based on a B2E (Business to Employee) portal that helped improving their internal business processes. Mango uses and services its own IT department. The team consists of 200 telecommunication engineers who are responsible for innovations that are being used on a daily basis. The IT platforms are improved or changed every 2 to 3 months by both the top executives and IT department. Service Automation Service automation allows to manage its service operations through the call center, web or face-to-face (Buttle, 2009, p.9). Stores It is in the organizational priorities to provide service to customers. Every store provides advices, suggestions to consumers and is also open to consumers complaints, suggestions and opinions. Mango can therefore more efficiently adapt to the wishes of its customers. The customer service is directly provided to consumers by well-trained personnel. The employees of Mango are ready to face challenges in offering an excellent service to the customers and find the solution to their needs and wants. Central offices Central offices include specialized customer service that is ready to respond and cooperate with any enquiry issues. The customer service is offered in five different languages such as Spanish, English, French, German and Catalan. In 2010 the total of 100,157 requests were handled, where 1% was Fax/Letter, 4% Via chat, 32% Telephone calls, 63% E-mail/Website. The sources of these varied direct from consumers, from stores, from head office staff, etc. The main topics were 1%Suggestions, 1% Congratulations, 19% Complaints and 79% Request for Information (MANGO, 2010). Analytical CRM Analytical Customer Relationship Management (CRM) focuses on capturing, storing, extracting, integrating, processing, interpreting, distributing, using and reporting customer-related data in order to enhance customer and company value (Buttle, 2009, p. 11). Mango currently does not keep track of the customers, as other companies do. At first Mango was only distributing one product line of classic female clothes. As mentioned earlier they have opened a new line of HE, which is a male clothes line. They do not use different approaches and systems to analyze customer behavior, but they have established a successful operational and strategic campaign to win more customers and keep the companys identity within them. Competitors ZARA The biggest competitor of Mango is the Spanish retailer Zara. The current largest retail exporter in Spain dominates the retail market. This success comes from different business decisions made. Zara was founded in 1975 by Amancio Ortega and Rosalà ­aMera. It was the first chain store of the holding company Indetex group. The international break-through was going rapidly in the 80s and soon Zara became a pioneer in the affordable fashion industry. Today the brand has a total of 1,671 chain stores all over the world. What makes Zara distinctive is that until now the no commercial policy is still applicable. The manufacturing and distribution of the products is also unusual. Zara designs, manufactures and distributes its products unlike most retail stores for example Mango. Management autonomy Chain stores have usual little autonomy in deciding which products to display or to put on sale. However the Zara chain stores are given the opportunity to decide themselves which products to display or even put on sale. The headquarters can then ship the quantity of the products demanded. The shop managers of each facility are deliberately chosen for their business knowledge. Because of this autonomy each chain store has a unique product assortment. CRM strategy The customer relationship management of Zara uses the Infor ERP software system. This system creates growth and loyalty through continuous customer dialogue. The Infor software system is chosen because it increases the chances of customer retention, increasing revenue, building loyalty and improving the chances of making new offers. The Infors ERP software system stands for enterprise resource planning. The usage of internet is required for several programs for example: e-business systems. This software has the following characteristics: An integrated system that operates in real time (or next to real time), without relying on periodic updates A common database, which supports all applications. A consistent look and feel throughout each module. Installation of the system without elaborate application/data integration by the Information Technology (IT) department The information Technology department uses IT- implementation and models to collect a large database of made sales. Zara uses the database information for customer profiling and analyzing the purchasing patterns of customers to target more accurately. The sales data are copied and given to the headquarter. Each terminal of each outlet has a floppy disk where all the sales data are saved. With the help of statistical calculation the IT department can also determine the average customer visit during a year. The outcome was that an average Zara customer visits the store on average 17 times a year in comparison of  ¾ of the customers of competitors. The purchasing patterns of customers can fluctuate and their demands. The purchasing department can quickly respond because of the customer tracking. Zara makes also usage of the Geographic information System (GIS). This system gives multiple access from varied geographical locations simultaneously. Conclusion Zara uses all these customer relationship management tools to gain competitive advantages over competitors. Considering all the different elements it can be concluding that the CRM strategy review is positive. These implementations had been introduced years ago and the results are still influencing the profit. HM Another direct competitor is HennesMauritz (HM). The company was founded by ErlingPersson in 1947. The company expanded their offers in 1960 by adding menswear. HM is the second largest global retailer. The brand owns 2629 outlets worldwide. Just like Zara HM is known for its fast-fashion clothing for women, men, teenagers and children. Customer experience HM makes usage of loyalty cards and a customer club to enhance the customer experience. Every customer can get a loyalty card and over an amount of time a certain discount can be earned. The company also launched a recent mobile marketing campaign that include SMS coupons and advertisement of sales as add banner. Customers can also win a free gift card with a mobile competition. CRM strategy HM uses collaborative customer relationship management to fulfill the customers demand. The company collaborates with several freelance designers to create a wide assortment. HM also uses analytical CRM by collecting customer related data. A few examples are the web shop and ordering a catalogue. Contact information is gathered and saved in databases. In case of sale customers get a notice or receive a new catalogue with the discounts. Collaborative CRM The collaborative part of CRM is used to describe the strategic and tactical arrangement of separate departments of a company, to attract, interact and develop the customer service. Collaboration ensures that people, processes and technologies are used in the most efficient and effective way to serve the customers in the most satisfactory way and maximize the profitability and revenues (Buttle, 2009, p.11). Mango is committed to creating and maintaining a team of people who are professional, motivated, flexible and capable to adapt changes in order to get Mango as close as possible to the maximum number of customers. The average age of staff within the organization is 29 years. Managers take care of personnel service such as internal promotion and continuous trainings. The stores in general have high staff turnover due to the fact that workers are mainly students/temporary workers, although the structural personal is very stable. Within the departments of Mango elections for representatives take place. The elected person is responsible for collecting all ideas and suggestions during the meetings. Afterwards they pass on and debate proposals in the meeting with the management, shareholders and administrators. The news are published and communicated to all the employees via the companys internal newsletters. As statistics shows that 95% of proposals lead to specific changes, that can vary from modification in working hours, increase and improvement of services, security improvement etc. There are as well other ways of contributing ideas within the company such as brainstorming or the suggestion box which can lead to the improvements in the company. Financial situation Financial Introduction Mango is a for-profit organization with the huge potential and the strong present situation. Financial situation highlights the successfully chosen CRM strategy, by focusing on maximizing profits and minimizing costs. Turnover http://www.mango.com/web/oi/rcs/mangoMundo/grafica1.jpg : Revenue for the consolidated group MANGO/MNG in (MANGO, 2010). Since 2002, Mango increases its revenues, last year the Group registered an increase of 11%. Indeed, in 2011, The Mango chain enjoyed revenues of 1 620.7 billion euro. The consolidated Group (Mango Holding) revenues were 1  240 billion euro. Forecasting : Turnover Mango Chain (Millions à ¢Ã¢â‚¬Å¡Ã‚ ¬) Forecasting is rather favorable. The group is expected reach the threshold of 2 000 billion by 2014.That representing approximately an increase of 23%. http://www.mango.com/web/oi/rcs/mangoMundo/grafica2.jpg : Turnover for MANGOschain store The figures of the graphs above show the weight of franchises in the Groups total sales. More than 70% of sales are made through franchises. The expansion of Mango abroad has donated smoothly. Today the group has more than 2400 stores across 140 countries. The franchise system Mango plans to enter countries which represent a market of the future such as China, where leaders see a potential 1,000 stores. The main objective of Mango is to be present in all the cities in the world. The President, IsakAndic, stated in 2010, the aim to double in size by 2014. And in the world, this is 3000 stores that leaders want to exploit in 2020. The project launched in 2011 seems promising, 644 stores were opened around the world. In 2012, the group plans to open 400 to 500 stores internationally, but especially in Europe where the brand intends to strengthen its position (LeFigaro, 2012). And this is the franchise system which is often used in some countries as management systems are different from those of the group. The choice of deductibles allows people to remain independent in their management while maintaining consistency at a global level. International sales already account for 82% of the activity according to the latest figures. Internet sales Internet sales are not to be overlooked either. In 2011, Internet sales reached 36.2 million à ¢Ã¢â‚¬Å¡Ã‚ ¬, representing an increase of 72%, the figure expected to double by 2012. The group expects a net sales growth of over 30% in 2012 due to the expansion of its network (LesEchos, 2012). Staff and distribution To support the expansion of its chain, the group plans to hire more staff. Mango outsources 40% of production in China and Vietnam, 20% in Morocco and the rest of Europe. Distribution system in place (SLM) can manage 5-7 times faster than the competition. The system incorporates the principle of responsiveness (speed, technology and information) at any time to have the goods needed, on the basis of sales forecasts. It allows you to sort and distribute 30,000 items per hour. This is how Mango ensures the production and distribution of 90 million items per year. Mango also takes a new turn and continues its development strategy by diversifying its offers. After the woman, the man (HE) (LSA, 2008) and accessories (Touch) lines and sports lingerie, youth will emerge by the end of the year. Customer Relationship Management Recommendation Customer Relationship Management is one of the critical and essential key aspects of developing a profitable customer relationship. Enhancing consumers applies assessing customers satisfaction, maintaining company open to consumers, two-way communication, being aware and being able to adapt to the consumers changing wants and wishes (Buttle, 2009, p. 127). Dissatisfied customers negatively affect the company in two different ways. On the one hand they represent direct losses in revenues, but on the other hand their dissatisfaction spreads via word of mouth which consequently damages the image of the company. Therefore it is essential to keep customers happy and satisfied. As a result of properly managed customer relationship, CRM brings a number of benefits. First of all an increase in market share as they have a positive attitude towards the company. As a consequence of customer satisfaction the customer long-term relationship will be established. This will lead to companies long-term profitability and sustainability, known as customer lifetime value (CLV ) (Buttle, 2009, p. 141). CRM recommendation Mango has a strong market position and profitable current financial situation. The following recommendations are given in order to enforce the image of Mango and lead the competitors. Mango should value their customers and it is significant to know, that the lost customer could cost 10 times as much to get back. Thereby building profitable customer relationships is more important even when it costs 5 to 6 times more money to attract new customers than to retain old ones. Keep track of consumers Since Mango does not have a database of customers, it is difficult to keep track of the customer flow and their purchasing preferences. Because it is very important to know exactly what customers want, Mango is recommended to use the IT system that allows to identify the general needs and wants of their customer base. It will help in to improve and will make customers taken care of by Mango. Loyalty cards Aside from the advanced IT system Mango can make regular clients feel special by identifying and treating them in a superior way. Therefore Mango should introduce loyalty cards. With the help of such techniques not only the CLV will be increased. Further the implementation of these benefits will attract current customers to be loyal and will tract new ones. Treating loyal and current customers in an efficient way can create a positive image of the company and can result in positive word-of-mouth promotion. Closer to consumers Mango can also offer an opportunity to customers to give feedback. This can be done via the official Mango website, so every form will be automatically proceeded. No extra costs are involved since it is online form. In addition to feedback concerning the quality of service, customers can share their wishes upon new design and style ideas for the upcoming collection. This will strengthen Mangos customer relationships and improve a two-way communication. Active-go public Customers are always interested in taking part in variety activities of their favorite companies. By arranging more fashion weeks that are either organize or sponsored by Mango even closer customer relationship and loyalty can be enforced. Also customers can organize events such as flash mobs, via social media -Facebook groups, buzz marketing, photo shootings in new collections and winning prices etc. CRM four stages Strategic The mission, vision and strategic goals are to be closer to consumers by creating a positive image and two-way communication. The customer-centricity focuses on customer needs and wants. Operational New customer operating system will allow to serve consumers fast and efficient. Analytical New communication techniques will allow the company be closer to customers and will provide enhance and efficient communication flow. This can be done mainly through the loyalty systems both online and via public events. Collaborative Since the major communication with consumers will take place via the online services, the communication flow would not cost as much. Online feedback forms and an IT customer database system will serve this purpose. Reference Literature Book: Francis Buttle (2009). Customer Relationship Management:concept and technologies (2nd ed.) Published by Elsevier Ltd, Oxford. Annual report: MANGO(2010), Sustainability Annual Report [Online]. Available: http://www.mango.com/web/oi/servicios/company/IN/empresa/rsc/memoria2010.pdf [2012, Oct. 15]. Hyperlinks: Ceeman (2009), MANGO, populazing fashion [Online]. Available: http://www.ceeman.org/data/files/Teaching_cases/teaching_case__ricart_kordecka_mango_popularizing_fashion_2009.pdf [2012, Oct. 15]. FMAG (2011), Mango to build a Mango City [Online]. Available: http://uk.fashionmag.com/news-150520-Mango-to-build-a-Mango-City [2012, Oct. 15]. FMAG (2012), Mango reduces its prices by 20% [Online]. Available: http://uk

Analysing Willfred Owens Dulce Et Decorum Est. Essay -- English Liter

Analysing Willfred Owen's Dulce Et Decorum Est. ‘Dulce ET Decorum Est’ is an anti-war poem, which emphasizes the intensity of war. The meaning of the ironic title roughly translated into ‘it is good and honourable’ but is not fully established until you examine the poem. The full title ‘Dulce ET Decorum Est Pro Patria Mori’ means ‘it is good and honourable to die for your country’. However the main aspect of this poem is paradoxical to its title. This demonstrates the message Wilfred Owen’s is insinuating and his attitude towards war. The poem is regarding Wilfred Owen and his troop of exhausted soldiers making their way back to base after combat at the front line until a gas shell is fired at them. A soldier is fatally gassed, is put in an ambulance dying slowly and then eaten away from the inside. Owen describes a man being engulfed by gas, â€Å"Dim through the misty panes and thick green light, Under a green sea I saw him drowning.† The death and distress is shown and the harsh actuality of war uncovered. It is almost as though you are reliving the agony the man is suffering. The reader is nowhere near as unfortunate as Wilfred. He was repeatedly tortured by his experiences even after having to encounter them. â€Å"In all my dreams before my helpless sight, He plunges at me, guttering, choking, drowning.† It is an inescapable memory that haunts him even when he attempts to sleep, on constant replay in his treacherous mind. His feeling of helplessness from that moment were captured and frozen, regret for not helping covered with hope, the possibility that he was unable to do anything useful anyway. A sense of regret, disbelief and anger are reused in other anti-war poems that Wilfred Owen ha... ... aid the pain once and still endured. Owen has created a way that transports the reader back to the scene of the poem. Using the effectiveness of the senses. He describes the sounds, the smells and the sights around to give the feeling that you witnessing the happenings expressed. My final contemplations to conclude this analysis are not in despair but queries, whether it is rhetorical or not I am not completely sure. The thing that concerns me is how the government send men off to fight war when under the misapprehension that they are fighting for their country? Do they have no conscious, no guilt in sending the doomed youth off to their inevitable deaths? The decisions they make obviously have repercussions as do all decisions, but to knowingly condemn so many innocent people to physical and mental torture then death, to me is worse murder, is it not?

The Fourth Law Of Robotics :: essays research papers

<a href="http://www.geocities.com/vaksam/">Sam Vaknin's Psychology, Philosophy, Economics and Foreign Affairs Web Sites Sigmund Freud said that we have an uncanny reaction to the inanimate. This is probably because we know that - despite pretensions and layers of philosophizing - we are nothing but recursive, self aware, introspective, conscious machines. Special machines, no doubt, but machines althesame. The series of James bond movies constitutes a decades-spanning gallery of human paranoia. Villains change: communists, neo-nazis, media moguls. But one kind of villain is a fixture in this psychodrama, in this parade of human phobias: the machine. James Bond always finds himself confronted with hideous, vicious, malicious machines and automata. It was precisely to counter this wave of unease, even terror, irrational but all-pervasive, that Isaac Asimov, the late Sci-fi writer (and scientist) invented the Three Laws of Robotics: A robot may not injure a human being or, through inaction, allow a human being to come to harm A robot must obey the orders given it by human beings, except where such orders would conflict with the First Law A robot must protect its own existence as long as such protection does not conflict with the First or Second Laws Many have noticed the lack of consistency and the virtual inapplicability of these laws put together. First, they are not the derivative of any coherent worldview and background. To be properly implemented and to avoid a potentially dangerous interpretation of them - the robots in which they are embedded must be also equipped with a reasonably full model of the physical and of the human spheres of existence. Devoid of such a context, these laws soon lead to intractable paradoxes (experiences as a nervous breakdown by one of Asimov's robots). Conflicts are ruinous in automata based on recursive functions (Turing machines) as all robots must be. Godel pointed at one such self destructive paradox in the "Principia Mathematica" ostensibly comprehensive and self consistent logical system. It was enough to discredit the whole magnificent edifice constructed by Russel and Whitehead over a decade. Some will argue against this and say that robots need not be automata in the classical, Church-Turing, sense. That they could act according to heuristic, probabilistic rules of decision making. There are many other types of functions (non-recursive) that can be incorporated in a robot. True, but then, how can one guarantee full predictability of behaviour? How can one be certain that the robots will fully and always implement the three laws?

Increasing Age Diversity in the Workplace

In this paper we will discuss the factors that relate to the relationship between the employee and employer in regards to age diversity and how organizations can handle this form of diversity. Managers have a unique challenge with having such a diverse workforce as they need to be able to prevent it from occurring. They also need to be watchful as even with the best policies discrimination can still occur and they must be able to handle the quickly and efficiently.No person should feel discriminated against in their place of employment and possibly with everyone adhering to the policies this may one day be the case. Increasing Age Diversity in the Workplace In a country that is diverse as the United States one would think that discrimination would not occur. Unfortunately differences in age, culture, and sex still represent some of those that are being discriminated against. Companies are taking steps to prevent further occurrences but even this is not enough as there are still docum ented cases of discrimination that have occurred.We also have no way of quantifying the amount of cases that have gone unreported. Anti-discrimination laws have been passed, now it is up to the companies to implement policies that adhere to these laws and ensure equal opportunities to all of their employees. As the population begins to age there are several factors that may occur in regards to employment relations. With aging comes an increase is diseases and comorbidities. This represents higher costs in health care for the company and their insurance companies.In order to make up for the increase in costs there may be a need to increase the premiums for those particular patients. The children of the aging patients may also require more flexible scheduling in order to take care of their aging parents, as most families may not be able to afford the costs of assisted living. Managers have a unique challenge when dealing with the age diversity in their companies. Although there is leg islation in place in regards to equality, there is a real gap in between the law and what actually occurs.Each company has their own practices of preventing discrimination in their facilities but it needs to be followed thoroughly. The managers will need to monitor their practices, on a regular basis, to make sure that they are not discriminating against their employees. They themselves may not believe that they are indeed discriminating against anyone but this is where they need to be educated further so that they will be cognizant of their actions.Geert Demuijnck writes in his article, â€Å"The mere fact that practices are designed and implemented does not imply that inequality automatically is reduced† (Demuijnck, 2009). Discrimination is not a straightforward problem. Companies will need to implement policies and possibly change practices several times until there is a satisfactory outcome. Another challenge for managers is the ability for the aging workforce to learn an d implement new technology. By no means does this mean that they cannot learn, but there will need to be programs set in place that will train them to use the new electronics.This will need to be offered to all employees, not just the older population, as you do not want to unintentionally discriminate against the younger employees. It could be voluntary and/or it could be an incentivized program that would give each person who passes the course a certificate and increase in pay. The aging workforce should not be disqualified from working just because there is new technology that is being implemented every day; they just need on the job training to acquaint themselves with the new software and equipment.Managers also need to understand how to work with the vast differences in generations. There are four different generations in the workforce today and the way they interact and perceive their lives and careers are vastly different. Not only will managers needs to be able to accommoda te the aging employees, but they will also need to understand the differences between the generations and equip them to work together to promote their strengths and become productive group.Organizations can cope with the differences with discrimination by setting a clear policy in place and making sure that the policy is distributed to all of their employees. This could be done through a handbook or a pamphlet. Once the policy is in place there should be clearly defined guidelines and penalties for not adhering to the policy. Before the policy is rolled out, managers should be trained on how the policy will work and how they are to identify other employees that are not adhering to the guidelines.The policy should be clear cut as to how an employee may file a complaint. If an employee or another manager is found to be breaking the policy then a progressive penalty system should be issued starting with a verbal warning and progressing to the possibility of being let go from the instit ution. It may not be easy to follow but the policy will need to be adhered to fully. Secondly, if an employee feels discriminated against the organization may have to cope with the legal matters and legal expenses if the person decides to press suit.The expenses may not always be monetary; the expenses could include the time spent by personnel gathering documents for the defense, also loss in morale and reputation. As previously described, companies need to have the policies set in place to prevent discrimination from occurring thereby also preventing litigation and the financial costs associated with it. As companies set policies in place to eliminate discrimination, they must also examine their existing policies to ensure that they do not discriminate in any way.Policies that have mandatory retirement dates may need to be modified or be completely removed. Most positions can be filled with an employee of any age provided, of course, that they have the skills for the position. Earl ier it was discussed that programs could be provided to keep the aging workers up to date with the technical changes, these programs must be offered to each employee. If the companies only offer the programs to specified age groups this could be argued as a form of discrimination. Healthcare premiums are offered at a lower cost if a person is healthy.Naturally when you age your health begins to deteriorate so decreased premiums for those who are younger or healthier may be taken as discrimination. Unfortunately these incentives are put in place to help promote healthier lifestyles but they do, in a way, discriminate against those that are aging. To change this would be difficult. One way would be to stop offering the discounted premiums to those that are healthy all together. Another option would be to offer the discounts not based on what diseases you have but on what kind of lifestyle you live (not smoking, increasing exercise).Certain things such as genetics predispose people tow ards medical conditions that they have no way of preventing and they should not be penalized financially for this. In conclusion, there is no question that there has been a decrease in documented cases of age discrimination over the last several years, but even with the changes made in the workplace we know that it continues. Companies must educate their managers on their anti-discrimination policies and also educate their employees in regards to how to discuss their concerns if they feel that they are being discriminated against.There is no easy answer to the discrimination argument as everyone perceives situations differently. As the saying goes, the best defense is a good offense. Preventing the discrimination from occurring is the offense. Also employees need to feel that discussing their concerns with their managers will not have repercussions on themselves and managers need to be educated in order to handle their concerns properly. This will improve over time but the companies must constantly monitor and make changes as necessary.