EXECUTIVE SUMMARY

There is a growing recognition in the business community about the importance of

knowledge as a critical resource for the organization. In this new economy, individuals and
companies are obliged to focus on maintaining and enhancing their knowledge capital in
order to innovate. Their ability to learn, adapt and change become a core competency for
survival.

Apple Inc. is an American Based Company, which is famous in manufacturing the

“Computers and peripherals ” products, It has its roots in some of the other countries which
have different culture, diverse human nature, different work-force caliber and different
business streamline. As a knowledge management consultant this report focuses on the
assessment of the feasibility of implementing an integrated Knowledge Management System.

In the highlights of this ultimate usage of Knowledge Management, this report consists of
some basic or primary issues such as: Productivity and Quality, Global Competition,
Diversity in Culture, The caliber of the Workforce and Business Streamline.

This report also gives a brief overview of some other knowledge transferring related
issues. Some of us might think and believe that tacit knowledge can be transferred through
one to another, but other have sufficient proof according to some famous sociological and
anthropological statements which say that “tacit knowledge cannot be transferred” unless
others will experience the same what that person is experiencing. And there are also some
thoughts that whether Can human interaction be substituted by a technological system? Or
not.

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TABLE OF CONTENTS

1. INTRODUCTION
1.1 What is Knowledge?
1.2 What is Knowledge Management?
1.3 Advantages of Knowledge Management
1.4 Tacit/Explicit Knowledge
1.5 Data
2. Background of the Company
3. Main Body
3.1 Designing KM: Steps
3.2 Main Issues
3.2.1 Global Competition
3.2.2 Productivity and Quality
3.2.3 Diversity in Culture
3.2.4 The Calibre of Workforce
3.2.5 Business Streamlining
3.2.6 Familiar Products
3.3 Transformation of Knowledge
3.4 Substitution of Human Interaction
4 Recommendations
4.1 Reduction of price
4.2 Proper Consideration on Performance
4.3 Friendly Usage
4.4 Training Workshop for Workers
4.5 Making Things According to Culture

5 Conclusion

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1. INTRODUCTION

1.1 What is Knowledge?

In normal everyday’s conversation we might mean that knowledge is to know facts and
information or the ability to do something correctly. Some time we use it that we have some
information, will that be called knowledge? In philosophy, knowing that something is the
case implies that what is known is true. Can we sensibly say that someone knows something,
but it isn't true? We cannot know that something is the case unless we are able to show that it
is also true (1998, Ken Ward,). Are we managing knowledge or not? Well may be “No”,
Most of the time we might make a mess of managing information. May be we should choose
a simple definition of knowledge. Rebecca (1997, p.1198) says “Knowledge has two basic
definitions of interest. The first pertains to a defined body of information. Depending on the
definition, the body of information might consist of facts, opinions, ideas, theories, principles,
and models (or other frameworks). Clearly, other categories are possible, too. Subject matter
(e.g., chemistry, mathematics, etc.) is just one possibility.” So the Knowledge is a condition
of knowing something through life experiences or association with others.

1.2 What is Knowledge Management?

KM is newly emerged and introduced method of model dealing in business with all the
aspects of knowledge within the context of the firm, including knowledge creation,
codification, sharing, and how these activities promote learning and innovation. Practice
Ally, KM encompasses both technological tools and organizational routines in overlapping
parts.

Rudy Ruggles, A leading KM thinker/practitioners, has identified the following items as

integral components of KM: Generating new knowledge, Accessing valuable knowledge
from outside sources, Using accessible knowledge in decision making, Embedding
knowledge in processes, products, and/or services, Representing knowledge in documents,
databases, and software, Facilitating knowledge growth through culture and incentives,
Transferring existing knowledge into other parts of the organization and Measuring the value
of knowledge assets and/or impact of knowledge management (Gotcha1999, P. 467)
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1.3 Advantages of knowledge management
KM is clearly a key approach to solving current problems such as competitiveness and the
need to innovate, which is faced by businesses today (Wickramasinghe, 2003). Knowledge
Management helps the organization to know, what they know! i.e., what are the strong
capabilities/ staff and facilities they have? It helps the organization to identify the
concentration areas and less populated areas of knowledge. And it helps the organization to
collectively, share towards fulfillment of goals and objectives of the organization. It also
helps find the current status of the organization as compared to the competitors. Huber (1991:
89) argues that an organization learns if any of its units acquires knowledge that it recognizes
as potentially useful to the organization. Productive learning exploits, explores, and
restructures an organization’s values and criteria, enhances organization capability and
improves an organization’s performance. This is the type of learning that organizations
promote (Argyris and Schon, 1996).
Knowledge has been and continuous to be the key to success and competitive advantage
for every organization. Effectively managing the processes of actively disseminating and of
actively applying knowledge to making an organization successful is known as KM and the
competitive advantage is achieved through developing and implementing both creative and
timely business solution that reuse applicable knowledge and that use newly created
knowledge, which is commonly called innovation.

1.4 Tacit and Explicit Knowledge

The expertise only knows how to use the tacit knowledge. Tacit knowledge only
manifested through actions and acquired through practice. It is difficult to transfer and
inseparable from individual. It consists of personal belief and values, subjective insights and
emotions. In tacit knowledge ideas only floats in someone’s head.
In Explicit Knowledge there is a rationalization of the information. Explicit knowledge is
capable of storage and transmission of information. The information is factual and can be
articulated. Explicit knowledge can be represented in the form of document, design, formal
language, objective and rational knowledge.

1.5 Data
Data can be consisting of tables, diagrams, numbers, graphs or images or particularly as
measurements or observations of a set of variables. Data is the first or the lowest level of
abstraction where the information or the knowledge is derived from. In knowledge
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management data has an ultimate role, all the information gathered and manipulated from the
data. Data can be processed or unprocessed. Distinct pieces of information usually formatted
in a special way.

2 BACKGROUND OF THE COMPANY

Apple Inc., formerly Apple Computer Inc., is an American multinational corporation

which designs and manufactures consumer electronics and software products.

The company's best-known hardware products are Macintosh computers, the iPod and the
iPhone. Apple software includes the Mac OS X operating system, the iTunes media browser,
the iLife suite of multimedia and creativity software, the iWork suite of productivity
software, and Final Cut Studio, a suite of professional audio and film-industry software
products. Apple Inc. operates more than 250 retail stores in nine countries and an online store
where hardware and software products are sold.

Apple established in Cupertino, California on April 1, 1976 and incorporated January 3,

1977, the company was called "Apple Computer, Inc." for its first 30 years, but dropped the
word "Computer" on January 9, 2007 to reflect the company's ongoing expansion into the
consumer electronics market in addition to its traditional focus on personal computers.

Apple has about 35,000 employees worldwide and had worldwide annual sales of
US$32.48 billion in its fiscal year ending September 29, 2008. For reasons as various as its
philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple
has established a unique reputation in the consumer electronics industry. This includes a
customer base that is devoted to the company and its brand, particularly in the United States.
In 2008, Fortune magazi1 ne named Apple the most admired company in the United States.

When Apple introduced the Macintosh Portable in 1989, it turns into bulky and
problematic. After having such lesson Apple introduced PowerBook in 1991 then the same
year Apple introduced System 7 which was a major upgrade to the operating system. It added
color to the interface and introduced new networking capabilities. Also it remains the

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architectural basis for Mac OS until 2001. After having several rises and falls in their
business Apple still known as one of the most creative and innovative manufacturers in the
world.

3 MAIN BODY

Implementation of a feasible Knowledge management system always helps and is a powerful

consideration for a company.

3.1 Designing KM: steps

Designing KMS has certain steps to follow in this case:

- At first one should identify the goals of the system desired by the organization
according to their needs and requirements.

- Evaluation of the practical benefits that would arise from applying knowledge to those
decisions.

- The data should be collected, cleaned and stored in the initial warehouse

- Installation of the delivery tools to create the information flow paths along with the
security gates to match access to agree usage patterns.

- Educate those who’ll have the access to the knowledge management system in use of
the various applications and after that launching of the system.

- Testing the system whether it is operational and meeting the goals or not.

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3.2 Main Issues

There is no question about that Apple Inc. is a world known MNC but during the time
Apple is having some problems in their other rooted countries. As we know Apple is an
American based company and the customs and traditions in America are a way different from
the other countries. World have different rules, diverse culture, different mindset of people
and different level of skilled work force. These problems which are sometime considered
minor but they still have a big influence on a MNC’s profile and success.
In the sight of these problems, these are the main critical issues which are centered on
specific strategic challenges facing the Apple Inc.

3.2.1 Global Competition

There is a big global competition for Apple in the market. The biggest competitor of
Apple is Microsoft. In the world of super computers and high technology, productivity and
quality have a big influenced part. Over the years Apple is producing several good in fact
best computers, but if we see toward the Microsoft, their productivity and quality is none
behind then Apple. Microsoft systems are more recognized in the world and are more in
usage than Apple. There is also a big competition in price between Apple and the Microsoft.
Usually Apple products are expensive than Microsoft. We know most of our world’s
population is poor or living an average life. Making Computers in range of the world seems
more difficult for Apple rather than the Microsoft. Having collaboration with Intel, Apple
still not able to compete Microsoft in terms of system Quality and performance. Until now
Apple’s iphone 3G was the most innovative phone but now the Androids have arrived.
Google Inc.' s vaunted mobile phones were introduced across the country yesterday by
Rogers Communications Inc., marking the online giant's maiden foray into the Canadian
wireless market.

While the launch failed to generate as much fanfare as the iPhone 3G a year ago, Google's
HTC Dream and Magic Smartphone will rival Apple Inc.' s device as more and more
consumers take their Internet to go.

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3.2.2 Productivity and Quality

In the world of super computers and high technology, productivity and quality have a big
influenced part. Over the years Apple is producing several good in fact best computers, but if
we see toward the Microsoft, their productivity and quality is none behind then Apple. Now a
day’s people are looking towards performance rather than the design and the looks. Apple
may Design their models beautiful but they are still behind than Microsoft.

There is a reputation build among the users that Apple Computers are less reliable and less
user friendly. Yes that’s true. Using Macintosh is far more difficult than the Windows. It may
be friendly for the designers but around the world not all are designers we have a big
population in the 3rd world countries who still uses the old versions of windows. Apple
introduced the Mac Book Air. This was the world’s most thinnest notebook computer ever,
but it only consist of one USB port with no DVD ROM and no Ethernet support. Research
shows that this notebook computer is bitterly flopped in the East Asian countries and a big
part of Europe. Somehow in America sales of this MAC Book AIR was good but the other
rooted countries of apple there was a failure. The system memory, HDD and the processing
speed of this computer was a way behind than the modern era computers.

3.2.3 Diversity in Culture

In India and china many people still lives in villages, which doesn’t have either seen what
is Macintosh Operating system. People in those rooted countries have almost no knowledge
about this Operating system. There is another thing which differ Apple’s product is the
method of usage. Normal Windows have that system which is used and practiced by almost
all the institutes of those countries. Students who are learning neither have seen Macintosh
nor have used. How can they be familiar of it?

Where in the higher education still students aren’t aware of the operating system of Apple.
The company is allowing the windows support in its products but the efficiency of this
machine is affected.

If at the other side we see in America, The schools, colleges and the universities are now
beginning to offer and use Apple products with Macintosh. There may be no such difficulties
ahead but company’s consideration should also be toward the other rooted countries except

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only America. That is why in 1989 Apple suffered from a great loss by making the Macintosh
Portable. Usage of Apple products may be more innovative but the cultural aspect is never
denied.

3.2.4 The Caliber of Workforce

As we know Apple is an American based company. The workforce caliber there is

different from the other countries. Workers might not get well trained or they are having lack
of resources to be educated according to the caliber of the workforce in America.
Company is still not giving their workers the proper instructive lessons on the product
manufacturing and the usage of the product. That is why the customer care department is
online and all troubleshoots are monitored in America. Although every single enterprise is
controlling their actions according to the culture but still it mostly resembles with the parent
company.
The employees of this company in its rooted countries might trained according to the other
system, which is being seen many times and they might not be able to show their skills as
they should. They might think that they are selected for the wrong job. From the employee’s
perspective, being selected for the “wrong job” may have consequences reaching from loss of
motivation, reduced job satisfaction, increased work stress, failure to progress in their career
and anxiety.

3.2.5 Business Streamlining

Business streamline of Apple Inc. is now stable after having crises in the past the company
is now able to reach its highest growth level but in compare to others still it is behind. “Think
Different” is the slogan of Apple but after making several different products Apple has got
the Popularity but not the stability in their business.

3.2.6 Familiar Products

After the success of Macintosh LC, Apple introduced the Centris line, a low end Quadra
offering, and the ill-fated Performa line which was sold in several confusing configurations
and software bundles to avoid competing with the various consumer outlets such as Sears,

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Price Club, and Wal-Mart, the primary dealers for these models. The end result was
disastrous for Apple as consumers did not understand the difference between models.

3.3 Transformation of Knowledge

The studies which have been made earlier, said that knowledge, if it is Tacit cannot be
transferred until or unless the other will experience the same atmosphere, situations and
culture. According to Polanyi’s (1966, p.18) view that ‘we know more than we can tell’.
Myers (1996), who states, “At its core, knowledge must be seen as tied to the personal or
human element.
As far as the information’s concern, yes it can be transferred to others. But Knowledge
where it is Tacit is only resides in a person’s head or it is only a property of an individual.

3.4 Substitution of Human Interaction

In this world of Multimedia and Hyper technologies Machines are replacing human but
still these machines cannot be able to replace human emotions and intelligence. We as
Human being have the ability to interact according to the situation around us. But the
machines only programmed to do the certain tasks in certain situations. In an Interview Bill
Gates Said, “Although we have created indigenousness in machines but we are still begging
human to operate them” (Roger T 2006, ‘The New Innovation’, New York Times, 7 August,
p. 6.).

4 RECOMMENDATIONS

To avoid those issues, there are some recommendations for the company:

4.1 Reduction of Price

Apple Inc. should reduce its price so that it’ll be in the range of middle class people.
Because most of the people in its rooted countries have less resources and those countries are
still considered as third world. Providing a new technology in a reasonable price always
encourages the buyers and attracts people.

4.2 Proper Consideration on Performance

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 If we see the past years Apple is only focusing on their creativity and style not on the
performance. Performance becomes the biggest issue for the company over the years. Their
new looks and different technologies have reduce their machine’s hardware performance and
speed. People need style with power. There are only some who prefer style over performance.
They should improve their processing speed, their memory capacity and their hardware
support.

4.3 Friendly Usage

This world is all about learning new things. When we learn, we take help from our
previous knowledge. Apple is producing systems absolutely new for the world that they’ll be
struggling to understand. At first they made Lisa than Macintosh and now they have
produced a new computer without key board. The key board is replaced by a multifunctional
wheel. This is clearly not a user friendly device. They should innovate but the product must
be user friendly.

4.4 Training Workshop for workers

As we know apple have difficulties of learning among its employees in its rooted
countries. It should organize training workshops to train its workers around its rooted
countries so that they can help and support customers.

4.5 Making Things According to Culture

Apple should make software and its computer who can easily compete the others in terms
of diversity in the culture. As we have seen many around the world except USA is simply and
mostly unknown of Apple software. It is just because of the culture around this world. They
should change according to the culture.

5 CONCULSION
The adoption of knowledge management initiatives is the preliminary preparation of the
organization to accept, adopt and utilize new knowledge management processes. Preparing
Apple Inc. for knowledge management initiatives means adapting a culture to facilitate,
MIKS-KL- 11 June 2009 Page 11
support and encourage the sharing, utilization and creation of knowledge. The resulting
knowledge culture will maximize the competitive advantage realized from any knowledge
management processes.
The feasibility study and watching the knowledge management system of the company
shows that there are many problems which are being faced by the company in its rooted
countries. KMs always support a MNC and its products. After making a feasible KM system
for the company it will reduce the issues that are being faced by the company.
Organizational culture is composed of business strategy, people, processes and structure
(Sanchez, 2004). By facilitating the exchange of tacit knowledge through interaction in
knowledge teams with other knowledge workers when working in projects encourages the
socialization process and creates a platform for knowledge transfer. (Nonaka and Konno’s,
1998). With the acquisition exercises and expansion of business globally, Apple Inc. could
also create an environment for horizontal knowledge transfer by facilitating knowledge
workers migrating to new knowledge teams working on new business opportunities or needs
and through the maintenance of communities of practice organized along functional lines of
business

5 REFERENCES

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The Electronic Journal of Knowledge Management Volume 4 Issue 2, pp 141-152
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Wilcox King, A. & Zeithaml, C. P. (2003) “Measuring organizational knowledge: a
conceptual and methodological framework”, Strategic Management Journal, 24, 763-772.
Roger T 2006, ‘The New Innovation’, New York Times, 7 August, p. 6.
Myers, P. S. (1996) “Knowledge management and organizational design: an introduction” in
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Rebecca O. Barclay, Managing Editor, Knowledge Praxis, California, Viewed 6 June 2009, <
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Ken Ward, What is knowledge, Brussels,
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Gotcha, On target for the needs of KM community, Ohio,

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