Solent Sports Organisational Challenges Commerce Essay Example

It includes planning, decision making, point of sales, accounting and distribution system, branch managers, word and spreadsheets, branch directors, management reports, operational planning, accuracy of data volume and time concerns, summary reports, face-to-face meetings, corporate directors, chief officer of finance, chief officer of marketing, chief officer of operation, chief officer of information, branch director, head office, decisions and plans. The figure below represents Solent Sports Information and Decision System.

KM Frameworks in SMEs

By examining the current KM frameworks for small and medium-sized enterprises (SMEs), two different trends have been identified.

2.1. Prescriptive KM Frameworks for SMEs

The main focus of this trend is to create a roadmap and methodology for KM in SMEs.Some of the models in the current trend focus on the sequence in KM execution, while others suggest adopting an iterative approach for success. Consecutive attacks follow a three-step methodology for KM execution. First, a company should identify and utilize its valuable knowledge. Then, it should explore new uses for existing knowledge. Finally, it should fulfill knowledge-based missions and achieve its objectives by creating new knowledge. This sequential pattern is followed by all methodological KM execution guides. However, research indicates that these approaches exclude the role of learning loops in organizational learning. Therefore, Liebowitz (2003) suggests parallel learning-oriented approaches for KM execution. Iterative learning-oriented approaches recognize the potential nonlinearity of KM execution stages. Each stage can be flexibly and interactively developed based on the needs of the KM initiative. Hofer-Alfeis and van der Spek (2002) propose a series of related stages for implementing the knowledge strategy process action plan by considering the company's KPIs and strategic approach. The overall key stages for

this approach are defined on the following page.

2.2 Descriptive KM Frameworks for SMEs

The main emphasis in these approaches is placed on the employees' knowledge. This means that the organizational knowledge or intellectual capital encompasses all usable knowledge that is either uncodified or tacit knowledge held by individuals, or codified and expressed knowledge. Among the introduced KM models, two main categories can be defined: resource-oriented and process-oriented.The first subdivision primarily focuses on the human resource position and accounting patterns in administrations, and it emphasizes the training and recruitment processes within an organization. This level also includes intellectual capital models, such as SKANDIA.

On the other hand, the process-oriented subdivision has received more attention in KM literature. Nonaka's KM model, for example, highlights the inter-transformation of tacit and explicit knowledge through socialization, combination, externalization, and internalization within an organization or between different organizations. Nonaka also introduces the concept of "Ba" (arising, interacting, cyber and exerting) in knowledge creation and emphasizes the importance of considering the dependence of organizational knowledge on context.

This section examines KMS as a socio-technical approach that is interconnected with the social, organizational, and technical aspects of the business environment. As a result, KM processes are considered in a cycle of growth.One of the models mentioned in the text is the incorporate KM model proposed by Handzic and Hasan in 2003. This model suggests a KM theoretical account that focuses on both corporate and individual activities in order to provide organizational 'know-how' through systematic cognitive processes within organizational culture. These models take into consideration both environmental and infrastructural capacities to facilitate the creation, transfer, and utilization of knowledge, as well as developmental tasks. Continuously

evaluating and determining the enablers for KMS offers an advantage of an updated process for the KM system implemented through the logic behind this approach.The challenges and opportunities of implementing KMS for SMEs include improving decision making and knowledge sharing, promoting faster innovation, reducing duplication of work, enhancing business processes, and managing knowledge resources. There is limited research on KM specific to SMEs in the literature, as most empirical studies on KM have primarily focused on large enterprises. It is important for SMEs to understand that KM systems should not be seen as simply scaled-down reproductions of those used by large corporations. The findings from studies on KM in larger firms have been argued to not differ significantly from smaller firms (Sparrow, 2005).However, in the context of Small and Medium Enterprises (SMEs), there are differences in barriers and development compared to larger corporations (Sparrow, 2005). Previous research on Knowledge Management (KM) in SMEs has identified three important elements for success: a knowledge-worker manager/owner, an embedded cognition system in the organizational context, and related networks, along with a strategic policy to support the entire knowledge process within the organization (Thorpe et al., 2005). Desouza and Awazu (2006) studied the importance of understanding the distinction in KM processes and implementation between SMEs and large corporations. In SMEs, owners/managers act as knowledge depositories, employees possess common knowledge that facilitates processes and is extensive and deep, the social context of SMEs prevents knowledge traps, and close relationships between employees allow for easy replacement of lost resources by accessing alternative resources. Additionally, SMEs are highly capable of discovering and internalizing external knowledge resources as most of their resources come from

external sources. Due to limited access to technology, SMEs manage knowledge in a more humanistic manner.Similarly, Sparrow (2001) proposes a KM model for SMEs, emphasizing the importance of a knowledge foundation and systems, incentives for knowledge acquisition, knowledge sharing within the organization, performance related to the KMS, organizational learning, and a supportive system for prioritizing and integrating KM activities. However, Wong (2005) suggests that the key success factors (KSFs) identified in studies on large companies may not directly apply to SMEs and should be carefully investigated in their specific context. Egbu et al. (2005) found that tacit knowledge is the most commonly generated knowledge in SMEs, which highlights the need for adopting technological support based on organizational needs. Building on previous research, Wong and Aspinwall (2005) propose a KM model and action plan for SMEs, consisting of 11 influential factors in KMS.Management leadership and support, organizational culture, information technology structure, scheme and vision, measurement system, infra-structures, motivation and incentives, resources, procedure and activities, training, HRM, and KM implementation are all important factors in achieving knowledge management (KM) planning aims and strategy development in SMEs. However, studies have found that SMEs face challenges in implementing KM systems due to a lack of KM vision and their overemphasis on tangible results. This discourages SMEs from actively acquiring, sharing, integrating, and creating new knowledge. Another challenge is the lack of internal expertise for KM, which SMEs often try to overcome by seeking external sources such as web collaboration, outsourcing, or training. However, research suggests that SMEs tend to rely more on in-house training compared to larger companies that rely on external resources. Therefore, it is crucial for SMEs

to develop an intra-organizational employee awareness and connectivity strategy to facilitate the creation of common knowledge and communication. (Wong and Aspinwall, 2005)The impact on SMEs' knowledge management systems (KMS) is more influenced by societal capital than technological systems for business intelligence. Davenport (2005) identifies five aspects of "context affected KM capabilities" in SMEs, including the turbulence of the business environment, organizational interactions, lack of technical skills, decision-making centered around owner/managers, and limited IT infrastructure. Research by Kim and Jee (2007) identifies barriers to KM implementation in SMEs such as lack of time and priority, lack of support for KM processes, fear of sharing knowledge, and lack of trust. Additionally, some researchers highlight the lack of investment in information systems, emphasizing the importance of investment in overall information systems strategy (Duhan et al., 2001). Overall, studies indicate that SMEs have low capabilities in implementing KMS (Duhan et al., 2001). To address these challenges, a modified version of the Hierarchical Spiral Model for Knowledge Management (HSMKM) is proposed as a solution for Solent Sports' knowledge process problems.This theoretical account, developed by Sun and Hao (2006), combines elements of Sun's waterfall model (Sun, 2004) and Nonaka's coiling model of KM (Nonaka, 1994). It can be categorized as both normative and descriptive, incorporating the advantages of both approaches. Additionally, it is adaptable to a growing company with a need for organizational memory and suitable for a dynamic environment such as SMEs. The theoretical model consists of three main knowledge processes from a coiling perspective and five main processes and eleven sub-tasks from a hierarchical perspective. The main processes define operational knowledge activities while the sub-processes reflect how these main

processes are carried out. Below is a conceptual model of HSMKM:

```
K representation
K Utilisation
K Distribution
K Preservation ;A ;
```The Hierarchical Spiral Model for Knowledge Management (HSMKM) outlines the key processes involved in knowledge management, including retention, update, evaluation, generation, ontology design, acquisition, retrieval, discovery, identification, understanding, choice, creation, and sharing (Sun and Hao, 2006).

To adapt this model for Solent Sports Co., the Modified Knowledge Management Model considers the dynamic nature of SME business growth. As SMEs experience organic growth, various factors contribute to complexity and dynamism within their organizational systems (Atuahene-Gima et al., 2005).

With a focus on integrating dynamic capabilities into knowledge management, there is a growing interest in exploring how strategic and organizational processes can manipulate resources to develop new competencies and renew existing ones (Atuahene-Gima et al., 2005). Cegarra-Navarro and Sanchez-Polo (2007) also found that dynamic capabilities play a moderating role in the relationship between knowledge management investment and business performance, as well as in deriving customer capital.

Considering Solent Sports Co.'s growth-oriented vision for expansion in the UK, it is crucial to adopt a knowledge management approach that acknowledges the dynamic nature of their business.The text discusses the importance of stable cognition resources and proper client relationships for organizations. It also highlights the lack of interconnectedness between different departments as a serious problem. To address these issues, a modified Knowledge Management (KM) model for Solent Sports is presented.

The modified KM model includes various components, such as K representation, K Utilisation, K Distribution, Organizational Memory, K Update, K Evaluation, K Generation, K Ontology Design, K Acquisition, K Retrieval, K Discovery, K Identification, K Understanding, K choice, K Creation, Knowledge Storage. This model aims

to support the organization in updating and utilizing acquired knowledge in a systematic manner.

Narver and Slater (1990) define market-oriented SMEs as having an organizational culture that consists of three important behavioral components: client orientation, competitor orientation, and inter-functional coordination.

Additionally, Atuahene-Gima et al. (2005) define learning orientation as the extent to which top management values new skill development, enjoyment of learning, curiosity for finding new ways to enhance performance, preference for challenging work, and critical reflection on company assumptions.Entrepreneurial orientation in SMEs focuses on the relationship between construction and invention to organize new procedures, relationships, or product/services. To demonstrate how Solent Sports should incorporate its knowledge management (KM) system in the organizational context and its interconnectedness to the selling and development schemes, a conceptualized theoretical model of KM arrangement and its interactions with other factors is illustrated below:

- Customer Orientation
- Competitor Orientation
- Inter-functional Coordination
- Commitment to Learning
- Advice
- Shared Vision
- Open-mindedness
- Creativity
- Innovativeness
- Proactiveness
- Risk Propensity
- Competitive Aggressiveness
- Market Orientation
- Learning Orientation
- Entrepreneurial Orientation

Knowledge Management

Selling Capability
Product/Service Development
Customer Relationship
Marketing Research
Marketing Communication
Pricing Scheme
Selling Management
Financial Advantage
Technological Advantage
Strategic Advantage

Figure 6: Solent Sport Organisational Context

Group Decision Support System (GDSS)

GDSS is a computer-based decision-making instrument aimed at solving structured or semi-structured problems within the team. One of the main advantages of GDSS is eliminating communication barriers and increasing group effectiveness through systematic, innovative, technical, and practical methods.The main difference between traditional group decision making and GDSS lies in the use of computer aids for problem resolution and the presence of a facilitator during the meeting. GDSS combines live interaction between people, hardware, software, and a series of processes. There is a matrix with four aspects: synchronous/asynchronous

(time issue), face-to-face/distributed (location issue), which differentiates the use of GDSS. In the case of Solent Sports Co., hierarchical decision making and lack of information distribution have reduced synergy within the organization, particularly in monthly meetings. The lower-level managers are the only ones responsible for producing ordered reports, which often become inaccurate and incomplete due to weak organizational and systems integration. As a result, a significant amount of meeting time is spent evaluating these reports, and many plans undergo testing and trial processes. GDSS can increase focus on the main problem and serve as a structure for reports. Parallel processing of decision making develops an information sharing protocol that facilitates problem investigation and eventually becomes embedded in the organizational structure and culture in the long run.The advantages of GDSS on the E-side include reducing the need for conventional meetings at headquarters, resulting in cost savings. Additionally, it increases efficiency in group decision-making through the web. Furthermore, employees are able to participate in decision-making by sharing their best practices, which helps accelerate the learning process. Moreover, it establishes an infrastructure for integrating different information systems within the organization and improves access to electronic data and reports.

The Solent Sports organizational hierarchy is illustrated on the following page. It consists of corporate directors, military officers, branch directors, and employees.

Branch directors are responsible for implementing the Intelligent System for Customer Relationship Management (ISCRM). ISCRM is a strategic approach that aims to enhance customer relationships and create value for both customers and stakeholders. By leveraging IT and marketing strategy, CRM aims to strengthen long-term customer relationships. Integration of CRM within the organization's information systems and IT infrastructure is crucial for

maximizing the firm's value chain through data mining and managing sales, marketing, and service processes (Payne and Frow, 2005).Consequently, CRM (Customer Relationship Management) is defined as an enlightening concern procedure in selling and service procedures. It involves the automated and incorporate procedure of client information through a communicational tool and a client intelligent system. This system processes, records, analyses, and describes the clients' information. Previous research has shown that Business Intelligence acts as a backbone for CRM and requires data warehouse, OLAP (Online Analytical Processing), and DM (Data Mining) for effective implementation (Reinartz et al., 2004). According to Solent Sports Profile, learning from customers is a crucial performance indicator for the company. They have partially implemented a continuous learning system due to the absence of a formal intra-organizational learning process and data warehouse. An intelligent CRMS (Customer Relationship Management System) can fully automate the data warehouse function while also building a strong and ongoing relationship with customers. In addition to benefiting the administration through learning advantages, the data processed through this system can be directly used to develop expanding strategies and enhance understanding of the company's market situation. Customers' preferences, sales details, feedback, etc. are some potential features of such a system for the company. When customer knowledge is integrated into the Knowledge Management framework in the administration, it results in a CKM (Customer Knowledge Management) system that reduces the distance from the decision-making point to the target point in a wise manner.Finally, the implementation of an expert system (ES) will increase the accuracy of studies and analyses and improve intra-organizational cognition and communication. However, there are concerns about the cost of implementing such a

system for Solent Sports, as well as the potential benefits that the company can achieve through the system. Further investigation into the specific details of the company is needed to fully understand these advantages.

An ES is a computer-based program that simulates human decision-making behavior in solving real-world problems. Each ES consists of a knowledge base, which is constructed based on task-specific knowledge and responses to real-world conflicts, as well as an inference engine, knowledge acquisition module, and user interface. The program uses the definition and characteristics of the problem, along with predetermined assumptions, to generate the best decision to support organizational problem-solving.

In ES literature, there is an important consideration for organizations that non-generic problems require specifically designed ES. However, small and medium-sized enterprises (SMEs) often face cost constraints and prefer alternative approaches or tools. Therefore, solving generic problems that are common among organizations through the application of ES is more practical for SMEs than using specific ESs.One of the main reasons for designing an ES is to acquire and store organizational knowledge, or in other words, codifying tacit knowledge. In the case of Solent Sports Co., employees are complaining about a lack of a learning system and distribution of experiences within the organization. An ES can be an immediate solution to this request by acquiring the available knowledge and experiences and storing them in a knowledge base that employees can access through the web. It can also be used to solve decision-making problems at higher levels. It is possible to design different ESs for different organizational tasks, but the cost of ownership for ES is high. Nowadays, even for large organizations, designing ESs is not

a cost-effective choice unless they are in a completely iterative situation where no future changes are predicted in order and conditions.

RFID-based product tracking system

RFID-based product system is an automated data identification and tracking system that is used to map sales routes, locate and monitor different products. The main advantage of using RFID is to obtain real-time information about targeted products and understand their sales cycles. Today, many companies operate an integrated internet-based RFID tracking system within their stakeholders' network (Robert, 2006). In the case of Solent Sports Co.,...A useful tool for modeling client buying behavior in a mercantile establishment shop is an RFID trailing system, which can detect client preferences. RFID can also assist in identifying product situations and facilitating just-in-time delivery and order tracking in online and catalogue sales approaches. In managing inventory across different store locations to meet the needs of various departments, RFID contributes to supply chain management. Additionally, RFID greatly aids in preparing accounting reports and procedures. It can also act as an intermediary between departments and other information systems, closing the information gap. RFID technology offers various features and price options, making it a cost-effective choice for SMEs compared to other solutions. Like other solutions, RFID requires an organizational IS and IT infrastructure to fully optimize its benefits and should be integrated into the organization's IS (Robert, 2006).

The SAS-generated report comparing Solent Sports Co.'s market share in each region is presented in Figure 9: Distribution of Customers by Regional Market.

9.1 Decision Making Situation: Solent Sports Co.The text states that the company has a strategic vision to expand to London, West England, and Wales, and increase its market share in the

current regional market. According to data, the company currently leverages 5.19% of its net income from the London market. The company does not yet have established sales points in London as it does not own any retail stores there. However, potential options for making profit in London include catalogue sales and online sales. By using a Business Intelligence package such as SAS, the company can integrate different reports that contain the same information. This can also allow for the creation of more integrated reports and comparisons between different Key Performance Indicators (KPIs). Traditional spreadsheets do not have the same capabilities and require a significant amount of work to integrate two different series of data sheets. The analyzed data shows a current market connection in London, which serves as a pilot market survey for Solent Sports Co. The data suggests a potential market opportunity for the company. If the company decides to target a limited number of cities in the future market or implement a restricted market strategy based on the best available option, BI packages like SAS can help identify these potential markets.The text provided describes the fiscal operations in regional markets for Solent Sports Co., specifically focusing on the sales hubs in Bournemouth, Winchester, and Basingstoke. Basingstoke is highlighted as having the second highest total sales in the entire targeted market. The text suggests two possible actions for planning and sales policy making: conducting a feasibility study to assess the potential outcomes of increasing investment and market focus in Basingstoke, and investigating the reasons behind the low profits in other secondary markets. Overall, the features of BIPs (Business Intelligence Platforms) will help integrate specific

data that decision makers in Solent Sports Co. prefer to have and distribute them within the organization.

The contribution of each sales method to Solent Sports Co.'s total profit is presented in Figure 10. The SAS-generated data analyzed by Solent Sports Co. shows market segments for the company. The retail store is identified as the oldest and most established sales method for the company.Recently, two additional revenue options, namely catalogue and online sales, have been introduced to customers. Despite this, data shows that the store strategy remains the dominant section for the company. However, the combined sales from the catalogue and online sections have now exceeded the leveraged net income from the store. This suggests that there is significant potential for improving the company's financial performance by investing in these other sections. In a meeting of decision-makers at Solent Sports Co., these insights on the current market segmentation situation can inform their discussions on market strategy and running new marketing campaigns based on the company's past financial performance. Additionally, the company has recently implemented an online sales campaign, according to its profile.