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The cost of learning is investment in future innovations, not a cost. Cognitive and social distances are lower among the employees in departments and higher at the entire level of organization. Consulting firms, legal firms, and pure play technology organizations: knowledge constitutes a major part of the output. The value chain depends on the ability of processing specialist knowledge of employees in the firm.

Social and cognitive distance is smaller in all parts of the organization. Investment in high technology and innovations represent key factors for their existence. This causes a perspective distance between the middle and the bottom level of hierarchy of the organizations. The consequences are visible in slower responses to market conditions. The measures cannot be thought cross the organizational hierarchy quickly.

This has led to problems in achieving set goals of management at the business process level and the transfer of responses of organizational changes from the lower to a higher management level. In the case of a smart home, health care is going for the system where embedded computers and networks are monitoring and controlling the physical processes with feedback loops where physical processes affect computations and vice versa. The concept of the smart home health care enables ill people to stay home as much as possible and continue living a quality life.

Control of vital human functions can be presented as a case study; this allows urgent health care through mobile applications, sensors in clothing, sensors, and surveillance cameras in flats e. In the case of a process of a smart home health care, the integration and sharing information are the key concept. It is going for the process of knowledge management 4. Big data are acquired directly from the things and users. Information is analyzed and saved in clouds;. Information is shared in real time.

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Introduction to Information Technology by CA Harish Krishnan

There are no limitations for sharing information between people or things. The development of Internet technologies resulted in creation of knowledge and its easier sharing in external organizational environment. In the case of personal data, it is necessary to allow access only to authorized personnel. High level of privacy and strong data protection should be provided.

Information sharing and collaboration is going on via wireless communications between people, between people and things, and between things. Marshall et al. The author emphasizes that it is a permanent process that takes place at all the levels within the organization, which may, in certain moments, occur in unexpected forms.

He claims that the quantitative data acquisition of new knowledge—increase efficiency, reduction of costs and improvement of return on investment—is not sufficient for knowledge management. It recalls the importance of rapid response to customer needs, creating new markets, and innovative products. Rowley [ 40 ] identified KM as a definition, acquisition, use, maintenance, and disposal of the assets of knowledge, for the purpose of increasing the value and benefits of all stakeholders.

The creation of new knowledge is not just a matter of processing objective information. The point is that the creation of new knowledge depends on the exploitation of tacit knowledge and often highly subjective knowledge of each employee within the organization [ 20 ]. In addition to the tacit knowledge, it is necessary to be vigilant even in explicit knowledge knowledge of official records, such as patents and the importance of their mutual interaction in the development of new products or services [ 7 ].

The authors present the conclusion that organizations exist only because they are better able to transmit and share knowledge as a market. This conclusion follows from the premise that organizations are able to process and store large amount of information than individuals [ 41 ]. The main feature of this period is that knowledge is sought outside the organization. The task of the organization is to capture, decode, and share the knowledge in organization and its environment. The procedures of knowledge management begin after the creation of knowledge, and the next processes are knowledge development and its transformation into practice.

Organizations were highlighted in this first phase of the integration of knowledge in business processes [ 42 ]. In the first period of development of knowledge management, it was lead to the conclusion that knowledge has to be produced in a social environment. It has been established that the knowledge is generated through the processes of individuals.

The creators of knowledge are obliged to care for its accuracy. In the process of cooperation between individuals both within the organization and in the external environment, it comes to sharing knowledge [ 42 , 43 ]. The second phase started around with the launch of the Internet 2. The second phase of knowledge management is characterized by the awareness of the importance of external information and knowledge to the organization.

Providing access to external information and knowledge, including their involvement in the value chain creation is of utmost importance. Important characteristics of knowledge organizations are in their advantageous utilization of superior information technology and highly skilled employees knowledge workers that is able to implement its innovative activities into realization [ 44 , 45 ].

The emergence of the Web 2. During the period after , with the development of social media, web portals were integrated [ 7 ]. Knowledge thus became available outside the organization and management, which is one of the critical factors of business success [ 46 ].

Von Krogh [ 45 ] proposed the theory that the Web 2. By integrating information and communication technology ICT into products, the von Krogh theory is a basis for the understanding of next third phase of knowledge management development. KM processes are also located between the consumer and the manufacturer or service provider. The importance of cloud computing and mobile computing for Industry 4. Services can easily be integrated and used [ 2 ]. For the establishment of the IoT and the course of the processes of knowledge management, companies set up a circuit between product and service: i radio frequency identification RFID ; ii wireless sensor networks WSN ; iii middleware, iv cloud computing, and v IoT application software [ 37 ].

This system can operate both with the help of people and artificial intelligence. The data collected with the help of these systems is saved in clouds. Products integrated with cloud computing in the field can provide data that enable a predictive maintenance, and to provide information about optimization possibilities in production. The use of integrated networking and integration of products into Internet data will allow for far reaching possibilities to collect data [ 47 ]. Instead of single data points or short intervals, a continuous stream of data is now available.

The huge amounts of data available can now be used to continuously analyze and optimize production. This enables fostering of predictive analytics [ 48 ]. Such system is based on big data analytics, which enables, for example, the informing of vehicles that are driven in a column, the distances between them, events on the road in front of them, weather conditions, etc. The drivers of vehicles—thus not only based on geostationary information—know the route, but with the help of sensors and connectivity between vehicles, receive notice of current dangers on the road [ 37 , 15 ].

Organization must develop an organizational culture to the level of employee awareness that knowledge sharing is presenting a fundamental concept for the firm, which enables further growth of the organization. The process includes the identification of the knowledge, sharing knowledge, knowledge acquisition, collection, and storage of knowledge and refresher [ 49 ]. Grower and Davenport [ 50 ] consider that the processes of KM are located between the information and the source of income of the firm services rendered or products sold.

The process is based on three sub processes: acquisition of knowledge, a definition record of knowledge, and the transfer of knowledge and realization. The general concept model of the process stems from the fact that by coordinating, coordinated and introduced operational processes occur.

Together, these processes form the system of KM as important operational processes so representing [ 26 ]:. Need for skills: determine which skills the organization needs. This process also includes the sharing of the existing knowledge, because the purpose is to figure out which is the already known knowledge that could be helpful for the organization;.

Knowledge Management Systems

Acquisition and knowledge creation: new knowledge is often generated also by combining existing knowledge of the transfer;. Documenting and storing knowledge: the results of the newly acquired knowledge that is documented and retained. Knowledge has become a force, a power, which is providing to the organization a competitive advantage. In doing so, the organization shall establish all levers for example, the establishment of corporate culture that enable it to exploit and use internal organizational knowledge in daily operations [ 51 , 30 ].


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Knowledge, which is used in business processes, is called organizational knowledge [ 30 ]. Organizational knowledge can be found in databases, business papers, archive organization, and minds of individuals. Knowledge is in newly emerging companies typically fragmented, and it can be found in chunks throughout the organization. When an organization moves the initial period of operation and begins to grow, to make all these fragmented pieces integrated into the system KM the purpose of which is to collect, organize, and process the knowledge into a usable form, applicable to all employees for example, in this end, the organization set up an intranet, ERP systems, CRM systems, etc.

An advantage of using the KM system is that it allows the conversion of intangible assets into useful business resources. In practice, for example, it shows in the event that the organization develops a commercial solution technology, processes, designs presentations, etc. In addition, hereinafter referred to license to offer in the form of advisory services in the case of a consulting company or in the form of licenses and franchises.

The social economy: Unlocking value and productivity through social technologies

An organization that purchases a license can use the existing knowledge to solve similar problems and create sources of revenue for the license vendor. Organizations often include a KM system into the marketing strategy, especially when they want to reach out to their customer, and they are entrusted with the execution of a specific project for example, the establishment of CRM and other software solutions to customer needs by an external service provider. In fact, KM as system has to ensure a more accurate communication between employees and thereby accelerate the settlement procedures and search, and providing solutions, which gives employees the ability to make better decisions [ 42 ].

It is necessary to understand that all of the obsolete knowledge that can be found inside or inside the organization is in various forms, which have to be physically moved into the KM system. Organizational knowledge is being created on the basis of resources [ 9 , 52 ]:. Tacit knowledge: unstructured knowledge, usually personal knowledge, based on the experience of an individual;.

Strategic knowledge: the knowledge to which access is restricted marketing strategy, financial analysis, business contracts, software code, etc. The trend of KM 4.


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Therefore, the IoT technology enables the creation of completely new products, services, and business models, which promise gains in virtually all industries [ 54 , 55 ]. The findings are based on the literature review. A particular limitation of the text is that no research was made. Further researches should be focused on the effect of this direction of technology on the ecosystem.

Deeper investigation of this topic could include case study with elements of implementation, testing business benefits, and social and environmental benefits with real data. Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution 3. Help us write another book on this subject and reach those readers. Login to your personal dashboard for more detailed statistics on your publications. Edited by Muhammad Mohiuddin. Edited by Bishnu Pal. We are IntechOpen, the world's leading publisher of Open Access books. Built by scientists, for scientists.

Our readership spans scientists, professors, researchers, librarians, and students, as well as business professionals. Downloaded: Abstract This chapter has focused on the importance and influence of Industry 4. Keywords knowledge organization Internet of Things innovative economy value added chain knowledge management organizational changes.

Introduction In the last 25 years, as a rapidly developing discipline, knowledge management KM has become the utmost important source for organizations that aim to raise efficiency, innovation, and hence the competitive abilities [ 1 , 2 ]. Manufacturing will be equipped with sensors, actors, and autonomous systems. These changes will have an impact on changing processes from suppliers to logistics and to the life cycle management of a product.

Along with all these changes manufacturing processes will be closely connected across corporate boundaries These changes in supply and manufacturing chains require greater decentralization from existing manufacturing systems. Embedded computers and networks will monitor and control the physical processes, with feedback loops where physical processes affect computations and vice versa.

An example is the control of vital human functions that allow urgent health care through mobile applications, sensors in clothing, sensors, and surveillance cameras in flats Smart city Smart city is defined as a city that comprises six factors in its development policy: smart economy, smart mobility, smart environment, smart people, smart living, and smart governance. It is necessary to respect ethical rules when using private information.

All rights reserved. Sitemap Terms of Use Privacy Policy. All rights reserved worldwide. Back to Menu. Data security Another crucial cloud benefit is data security. Here are some factors to consider: The process begins with strategic planning, so you must fully understand the IT infrastructure requirements of the enterprise.

Key resources such as databases, applications, interfaces, extensions, networks, and customized hardware must be considered in detail. It is important to assess the challenges and risks of cloud deployment as well as the opportunities it is likely to offer. Determine the feasibility of deploying existing business applications in the cloud.

How Cloud Technology Brings New Opportunities For Businesses

Research cloud service providers to ensure that you find one that can deliver a solution that is right for your organization. Related Articles. Improving Lives Economy.