After several years of misfortune, General Motors (GM) was encouraged to file for bankruptcy. GM had really hit rock bottom. Several of their facilities closed and thousands of jobs were cut. The cause for the bankruptcy was due to years of losses, market shares decreasing, and a breathtaking drop in sales. The bankruptcy forced GM to make some major changes within the organization, (Isidore, 2009).
Knowledge Management System
A knowledge management system has the ability to enhance several companies, especially GM. GM is a well-known company that has been around for several years. GM can profit from several advantages by using a knowledge management system. Some of those advantages ...view middle of the document...
Even though GM filed bankruptcy in 2009, they still pressed to move forward. GM was willing to learn from their mistakes. GM decided to take some risks and make some investments to improve their business. “GM’s investment in the Cisco-based PFCN solution will generate $60.5 million in net benefits over five years, and yield an ROI of 166%. The benefits include labor savings from more efficient deployment of network engineers and analysts, one-time network setup savings at each plant, and inventory carrying cost reductions. Total net benefits increase to $136.8 million if the benefits of higher network uptime ($76.3 million) are included in the analysis,” (Cisco Systems, 2010).
Some indefinite metrics of GM’s knowledge management are below:
- External relationship capital- this is the scope of how GM connects with their affiliates
- Structured capital- GM’s information systems that influence competitiveness
- Human capital- people have different abilities, knowledge levels, and skill sets
- Environmental capital- GM focuses on the importance of relationships with their surroundings, (Delen, Sharda, Turban, 2011, p. 515).
Some defeated factors that are associated with GM’s knowledge management are below:
- Knowledge manangement and data warehousing are very similar- data warehousing is a database that holds data, not knowledge. Data warehousing does not focus on behavioral features of KM.
- Knowledge management is very similar to reengineering- reengineering is generally a an one-time effort to enhance effectiveness; whereas, a KM is a continuous attempt to improve the organizations processes
- Knowledge management is...