Background of the Company
It is important for every business organisation to have effective ways of knowledge management that can help them to initiate future innovation for the overall business process. The key component of knowledge management is to process all the information that is required to make business plan of innovation. It is one of the multidisciplinary approaches to achieve organisational objective and make successful business.
The current report will aim to highlight upon the strategy approach that are used by Mercedes Benz for their knowledge management project that is aimed to bring about innovation in the business process. The detail theories related to the strategies are also mentioned within the report along with highlighting the key challenges of the project including the critical success factors. The brief overview of the company will also be provided which will help to explain the current situation of the company and also the strategies that are implemented in order to bring about future innovation in the designing of the automobile product.
The Mercedes-Benz is one of the world’s most renowned automobile company which is best in German and has it’s headquarter at Stuttgart. The company was initiated in the year 1886 and they introduced the very first petrol powered automobile vehicle. Currently the company has its manufacturing unit in all the major Nations across the globe. There are a wide range of car models that are being offered by Mercedes Benz Company. Bringing about new innovation in the automobile technology is one of the main aims of the company that helps them to use the latest form of design in the automobile vehicles and also use the principles of sustainable development (Mercedes-benz.co.uk, 2017).
It is also one of the main features of the company to focus on fuel efficient automobile engine that will help in the process of Sustainable development and also cause less harm to the environment. The company also sponsors various sports event all across the globe which is one of the major marketing strategies that help to increase the popularity of their brand.
The primary objective of the knowledge management project that has been initiated by Mercedes Benz is to use the market research information in order to make future innovation in the design of the automobile vehicles. The evolution of the knowledge management project in the modern days are highly challenging due to the fact that there is huge amount of information and data that needs to be processed in order to decide upon the future marketing strategies and innovation.
Overview of the Project
As the future aim of the company is to initiate more fuel efficient cars in order to deal with lack of environmental resources and climate change, it is important for them to use the latest form of efficient automobile Technology in order to optimise the use of resources. The company has also planned to introduce automobile vehicles that are powered by alternative sources of energy. The company has also appointed project managers in order to deal with the new innovation by the use of knowledge management and information processing. Sufficient funds are also allocated for this project in order to ensure that there is no compromisation done at any level in order to bring about new innovation.
With the increased flow of information and data in the modern market place all the companies are facing huge challenge to process and make use of all the required information needed in making of effective business plan (Lai et al. 2014). Hence large-scale multinational corporations like Mercedes Benz are looking to implement effective knowledge management strategy in order to bring about innovation in the business and marketing style and also use the latest technology in order to design their product according to the changing needs of the consumer market.
Noruzy et al. (2013), have suggested the use of digital technology and information processing system that can be regarded as one of the essential part of the knowledge system. With the advancement of digital age, the use of information processing system is one of the effective ways to deal with huge amount of data that are being collected from the Marketplace and can be used for scientific research and innovation. Integration of Information Technology along with communication system by the use of Artificial Intelligence and robotics are one of the few common examples that can be used by Mercedes Benz in order to implement effective strategy in the knowledge management system. It is also important to note in this context that knowledge management has been one of the major driving force for all multinational corporation of modern days that can help them to better understand the changes that keep according with in the Marketplace.
Proper up gradation of the data management system along with implementation of intensive data processing in the operational system can used to initiate knowledge based business and can also help to deal with the challenge of information gathering. The intensive use of data processing can be used in enterprise Resource Planning and product development management which are few of the key components of knowledge management. It is also important to integrate the knowledge management system along with customer relationship management service which can help the company to collect important data from the customer satisfaction survey and also use effective ways of data analysis in order to understand the need and demand of the customers. The transaction based data processing system can also be utilised in order to establish connection with the information that are being collected along with the business strategies of the company.
Strategy and Approach taken by the Mercedes-Benz for the project
In the initial process the company needs to identify the strategic issues that can prevent the process of proper use of knowledge management system (Obeidat et al. 2016). It is important to include the function of customer relationship management in order to collect and optimise the use of information system that is present within the organisation. Strategic review of the enterprise business model is also an important part that is needed to make proper use of the knowledge management system and innovation. The implementation of the knowledge management system only on the basis of operational functioning will not be sufficient in order to bring about the innovations that are plant by Mercedes Benz. Situation analysis and scenario planning is one of the primary important steps of strategic development that can help the Mercedes Benz company to bring about future innovation in their automobile product. The current scenario in the automobile industry is to make use of fuel efficient car and also developed for the research on automobile engine that can be powered by alternative source of energy like solar powered by biofuel. The culture of Change management and effective leadership are few of the important necessity is that must be included by Mercedes Benz in order to deal with proper utilisation of the knowledge based system (Sheng et al. 2015). Proper analysis of the competitive environment in the automobile industry and also the luxurious brand of cars can also help the automobile company to make use of the important information that is available within the market.
Proper use of the situation includes the use of external market analysis and relevant tools that can help to collect significant information. The swot analysis tool can be used by Mercedes Benz in order to evaluate their strengths and weakness in the current scenario. It can also help to provide information about the opportunity that exists within the automobile industry which can be used by the company for further growth in future. It is also important to get idea about the threats that exist within the market in order to prepare risk management policies for future. Proper knowledge about the suppliers and business partnership is also important along with the information of the potential target customer groups (Holsapple 2013).
The scenario planning of the knowledge management project can help to predict the future of the automobile industry and also the future outcomes of the implementation of innovative style of product (Meihami and Meihami 2014). The company can also implement sophisticated statistical software that can help to forecast the company can also implement sophisticated statistical software that can help to forecast the risk that are associated with automobile industry. The following steps of the project the Mercedes Benz company need to evaluate the strategy that are feasible in the current scenario which can help to make them gain competitive advantage and also follow the rules of sustainable development. It is important to note in the contacts that the implemented strategy will directly affect the core business model of Mercedes Benz and also decide upon the future business strategies and decisions that are implemented within the business process.
After implementation of proper strategic decision it is important for the company to make use of the relevant resources in order to ensure full Optimisation of the same. The company henceforth can allocate project leaders in order to execute the guidelines according to the overall strategic plan. It is also important for the company to understand the full impact of the strategy that is going to be implemented (Hislop 2013).
Once the strategic plans are being implemented it is important for the company to evaluate the overall performance of the innovative style of business model that are being implemented and also evaluate the proper impact of knowledge management system. Implementation of proper monitoring system of performance management can help to predict the financial outcomes along with the customer satisfaction level of the company (Alrubaiee et al. 2015). Proper balanced scorecard needs to be implemented in order to ensure that the financial performance of the business is properly improved after implementation of innovative style of business. However, it is also important to modify the balanced scorecard of the company according to the rules and regulations of the knowledge management system.
As mentioned earlier the key challenges of the knowledge management and innovation project is that the company has to deal with huge information and data from various domains.
The lack of awareness among the stakeholders of the company about the latest Processing Unit of data management is also one of the major issues that are faced by Mercedes Benz in order to bring about the latest innovation in their project (Serenko and Bontis 2017). Lack of future planning and effective performance evaluation system is also prevented the company to invest in the future innovation using the present knowledge of automobile industry. In spite of being one of the major multinational corporations of automobile industry the Mercedes Benz Company lacks the use of the data management system that can help to deal with the process of dealing with property implementation of knowledge management system.
The common understanding among various level of stakeholders of the company are one of the major critical success factor that can decide upon the future of knowledge management and innovation project that are being implemented by the Mercedes Benz company. The level of interpersonal communication within the various levels of employees of the company is also one of the deciding factors of the knowledge management project (Nambisan et al. 2017).
However the main success factor for the innovation project of Mercedes Benz is the ability of the project manager to predict the future growth of the company that can be expected by implementing the innovative style of automobile research.
The information processing systems that are being implemented by Mercedes-Benz is the major leading points in the context that can help to make use of the knowledge management. This can help to ensure that the project objectives are being fulfilled and the company can implement the policies of sustainable development for future growth within the automobile sector.
Conclusion
In the concluding note it can be said that in the context of present scenario proper use of knowledge management system and information processing are few of the vital components of implementing innovation within the organisation. Proper evaluation of the overall project can help to ensure that Mercedes Benz can have a significant competitive advantage within the automobile industry by bringing about new innovation of automobile engine.
Reference
Alrubaiee, L., Alzubi, H.M., Hanandeh, R.E. and Al Ali, R., 2015. Investigating the relationship between knowledge management processes and organizational performance the mediating effect of organizational innovation. International Review of Management and business research, 4(4 Part 1), p.989.
Hislop, D., 2013. Knowledge management in organizations: A critical introduction. Oxford University Press.
Holsapple, C. ed., 2013. Handbook on knowledge management 1: Knowledge matters (Vol. 1). Springer Science & Business Media.
Lai, Y.L., Hsu, M.S., Lin, F.J., Chen, Y.M. and Lin, Y.H., 2014. The effects of industry cluster knowledge management on innovation performance. Journal of Business Research, 67(5), pp.734-739.
Mercedes-benz.co.uk. (2017). About us – Mercedes-Benz. [online] Available at: https://www.mercedes-benz.co.uk/content/unitedkingdom/mpc/mpc_unitedkingdom_website/en/home_mpc/passengercars/home/passenger_cars_world/about_us.html [Accessed 26 Jun. 2017].
Meihami, B. and Meihami, H., 2014. Knowledge Management a way to gain a competitive advantage in firms (evidence of manufacturing companies). International Letters of Social and Humanistic Sciences, 3, pp.80-91.
Nambisan, S., Lyytinen, K., Majchrzak, A. and Song, M., 2017.Digital Innovation Management: Reinventing Innovation Management Research In a Digital World. MIS Quarterly, 41(1).
Noruzy, A., Dalfard, V.M., Azhdari, B., Nazari-Shirkouhi, S. and Rezazadeh, A., 2013. Relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance: an empirical investigation of manufacturing firms. The International Journal of Advanced Manufacturing Technology, pp.1-13.
Obeidat, B.Y., Obeidat, B.Y., Al-Suradi, M.M., Al-Suradi, M.M., Masa’deh, R.E., Masa’deh, R.E., Tarhini, A. and Tarhini, A., 2016. The impact of knowledge management on innovation: An empirical study on Jordanian consultancy firms. Management Research Review, 39(10), pp.1214-1238.
Serenko, A. and Bontis, N., 2017. Global ranking of knowledge management and intellectual capital academic journals: 2017 update. Journal of Knowledge Management, 21(3).
Sheng, M.L., Hartmann, N.N., Chen, Q. and Chen, I., 2015, May. The synergetic effect of multinational corporation management’s social cognitive capability on tacit-knowledge management: product innovation ability insights from Asia. American Marketing Association.
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