Strategic management accounting and finance Essay

Strategic management accounting and finance - Essay ExampleThat information, in turn, can then become the knowledge that leads to wisdom. The idea is that information, knowledge, and wisdom be more than simply collections. Rather, the whole represents more than the sum of its parts and has a synergy of its own.In an organisational context, data represents facts or values of results, and dealing between data and other relations have the electrical condenser to represent information. Patterns of relations of data and information and other patterns have the capacity to represent knowledge. For the representation to be of any utility it must be understood, and when understood the representation is information or knowledge to the iodine that understands. The value of Knowledge Management relates directly to the effectiveness with which the managed knowledge enables the members of the organization to deal with todays situations and effectively imagine and create their future. Without on-demand access to managed knowledge, every situation is addressed based on what the individual or assort brings to the situation with them. With on-demand access to managed knowledge, every situation is addressed with the sum total of everything anyone in the organization has ever learned about a situation of a similar nature.Todays business environment is characterized by continuous, lots radical change. Such a volatile climate demands a new attitude and approach indoors organizations-actions must be anticipatory, adaptive, and based on a faster cycle of knowledge creation. Movement from a manufacture to a knowledge contextMost of todays companies are built around organizational structures ranging from bureaucracy to adhocracy (Brezillon). According to Weber, Henderson, and Parsons, the attributes of a modern bureaucracy include impersonality and the implementation of a system of authority that is a good deal indestructible. Toffler sees it as a network of roles fulfilled b y individuals. Bureaucratic organizations usually deal with routine operations. At the other end of the spectrum, an adhocracy represents any form of organization capturing opportunities, solving problems, and getting results. One crucial inconsistency between both structures is the way information and knowledge flow inside the structure. In the bureaucracy, they flow bottom-up along a hierarchical path, before coming down again along a polar hierarchy. In the adhocracy, hierarchical ties are relaxed and information and knowledge mostly flow through lateral relations (Brezillon).Some of the current challenges businesses face includes - A growing emphasis on creating customer value and up(a) customer service - An increasingly competitive marketplace with a rising rate of innovation - trim back cycle times and shortened product development times - A need for organizational version because of changing business rules and assumptions- A requirement to operate with a shrinking number of assets (people, inventory, and facilities) - A drop-off in the amount of time employees are given to acquire new knowledge and - Changes in strategic directions and workforce mobility that lead to knowledge loss.All of these factors make knowledge management a necessity quite an than a luxury. Organizations must have a clear handle on how knowledge is discovered, created, dispersed, and put to use. In some ways, knowledge managem