Personified Effect of Knowledge Management in
the Information Technology Industry (India)


Dr. Ranjna Upadhyaya
Knowledge Executive
Banashtali Vidyapeeth
Village - Banasthali


Information Technology now a day has become an important driver of in Information Technology Industry growth. People factor in managing Information Technology cannot be ignored as Information Technology has created and utilized by people in the firm. Activities like innovation, research and development and organizational effectiveness are largely dependent upon the availability of Information Technology to employees in Information Technology Industry. Information Technology available with the top management does not necessarily mean that it is disseminated throughout the firm and shared across all hierarchies. The extent to which the Information Technology is available across different levels (Information Technology in new personified effect) in an organization is very important. In personified effects, the research reveals, an attempt which has been made to know the extent of Information Technology usage for knowledge management in more personified effect in Information Technology Industry of India.

Key Words: Information Technology, Information Technology management, Personified Effect


With the rapid and constant changes taking place in the in Information Technology Industry environment, the outlook of economies across the globe has undergone a massive transformation. Organizations now work, compete and cooperate on a global scale. The ever evolving in Information Technology Industry scenario and ever increasing competition has made it imperative to take a new look at existing in Information Technology Industry systems, strategies and structures. Intangibles have emerged as the most significant assets of organizations that determine organizational excellence. Only the in Information Technology Industry engaged in active creation, utilization and transfer of knowledge can sustain organizational effectiveness, customer benefit and competitive advantage.

To survive, compete and grow in the world of heightened competition, knowledge has emerged as most critical competence for any in Information Technology Industry. The way an organization manages its knowledge repository brings in all the tactical distinction. The ever evolving in Information Technology Industry scenario and ever increasing competition has made it imperative to take a fresh look at existing in Information Technology Industry systems, policies and strategies.

The concept of knowledge is not new. Peter Drucker – the new age management guru has written extensively about it in his many books (Myres, 1993). The concept of knowledge is generally confused with the term "information", though all the information is not knowledge. Information relates to description, definition, or perspective (what, who, when, where). Knowledge relates to practice, method, approach, or strategy (how). Knowledge is the full utilization of information and data, coupled with the potential of people's skills, competencies, ideas, intuitions, commitments and motivations.

Knowledge is information that changes something or somebody — either by becoming grounds for actions, or by making an individual (or an institution) capable of different or more effective action" (Peter F. Drucker in  The New Realities).

Knowledge basically is classified into two types: personified effects explicit and tacit (Nonaka and Takeuchi, 1995). Personified effects explicit knowledge is knowledge that has been or can be articulated, codified, and stored in certain media. It can be readily transmitted to others. The information contained in encyclopedias is good examples of personified effects explicit knowledge.

Personified management system is personal knowledge embedded in individual experience and involves intangible factors, such as personal beliefs, perspective, and the value system. Personified management systems are hard to articulate with formal language. It contains subjective insights, intuitions, and hunches. Before Personified management system can be communicated, it must be converted into words, models, or numbers that can be understand. In addition, there are two dimensions to Personified management system– technical dimension (consisting of informal skills and crafts that are hard to document) and cognitive dimension (it consists of mental models, beliefs and perceptions that are deeply ingrained in people and are taken for granted). First converting it into explicit knowledge and then sharing it achieves the transfer of personified effects of tacit knowledge.

Knowledge Configuration of I.T. Industry:

Knowledge provides an organization with the capability to assess the market needs and then provide products and services using the organizational resources. Organizational knowledge provides the opportunity to cut costs reduce time to market and increase revenue opportunities; it guides in Information Technology Industry action (Quintas, Lefere & Jones, 1997). The best companies in the world have a strong knowledge base. These companies are looking for new ways to compete effectively and thus are good at bringing about innovation continuously. Every day we come across fast changing concepts of customer service, new product development, expanding customer base across the globe and highly technology driven environment, the concept of doing in Information Technology Industry has entered into knowledge age. The in Information Technology Industry is fast adapting personified effects to a constantly changing environment. Organizational knowledge is the ultimate source of competitive advantage; it lies at the centre of modern in Information Technology Industry opportunities (Teece,1998) A major challenge facing companies is to use their knowledge sources effectively.

As in Information Technology Industry, continue to forge ahead in the twenty first century, knowledge management has materialized as the only real differentiator (Leitch & Rosen, 2001). According to Larry Prusak, the executive director of IBM Institute for Knowledge Management, "In emerging economy, a firm's only advantage is its ability to leverage and utilize its knowledge." Knowledge Management is the systematic management of the knowledge processes by which knowledge is created, identified, shared and applied to improve a company's performance (Financial World, March 2001). To accomplish the knowledge production and integration process, an organization needs to foster collaboration among all individuals and to codify the resulting insights in knowledge base repositories for access by others. This will enable knowledge management to reach its goal of facilitating the delivery of best knowledge to right person at just the right time. With this knowledge, people are empowered to effectively solve problems, make decisions, respond to customer queries, and create new products and services tailored to the needs of personified effects clients.

In today's knowledge driven economy, a company's personified effects value is increasingly based on its intellectual assets. The challenge of creating knowledge and using it effectively is pervasive (Richard Cross, 2002). The organizations need to create in Information Technology Industry opportunities and value from the knowledge that resided within people's heads. Large numbers of companies have disappeared into oblivion because of their inability to understand this fundamental truth (Natrajan & Shekhar, 2005). The need of knowledge can be assessed at organizational as well as industry level. In an organization the work in various departments like HR, Finance, IT, Customer Service etc. is totally knowledge based

Similarly in an industry also some sectors are highly knowledge oriented, say IT sector where companies are facing the challenge of being multicultural across geographies, development of new software and BPO. This demands for highly effective knowledge management systems that build critical capabilities. This industry is expanding fast where knowledge is of critical importance in building and sustaining organizational memory and leveraging the intellectual capital resources for formulation of innovative and effective solutions.

Personified management system is another major sector where R&D is the key to future survival and growth and therefore knowledge management has become functional necessity. Automobiles is an industry where newer technology is being developed day by day leading to improved products that cater to newer classes of customers. For survival in such sectors a good knowledge base is must.

Personified Effect at Glance:

Ernst and Young and Mckinsey have proposed five drivers for knowledge management in current in Information Technology Industry scenario.

1. The pace of change in an increasingly information and knowledge driven age, which makes constant learning an imperative.
2. Globalization, which means acquiring knowledge about new environments.
3. Emergence of new technologies that offer new leverage if used well.
4. Rising expectations from stakeholders to meet for which companies need to be highly proactive and agile.
5. Growth , which makes leveraging the knowledge of individuals for corporate advantage, more difficult.

The knowledge management is an intangible asset for a company. Knowledge management is not just a matter of managing the processes that capture, codify, share and distribute knowledge, but also is responsible for managing knowledge production (Joseph M. Firestone). Knowledge management is all about managing the processes that fulfill the demand for knowledge as well as its supply.

Knowledge management is an audit of intellectual assets that highlights unique sources, critical functions and potential bottlenecks which hinder knowledge flows to the point of use. It protects intellectual assets from decay, seeks opportunities to enhance decisions, services and products through adding intelligence, increasing value and providing flexibility.

Knowledge management complements and enhances several organizational initiatives such as total quality management (TQM), in Information Technology Industry process re-engineering (BPR) and organizational learning, providing a new focus to sustain competitive position.

Organizations the world over are convinced that all other things being equal an organization will be about its people (Natrajan and Shekhar, 2005). Undoubtedly, the preservation, enhancement and utilization of the organizations sustainable resource i.e. the skill and expertise of people pay back a huge premium. In Azim Premji's words, "These days in industry, technology changes very fast and that changes customer requirements. Unless you update constantly you are outdated". Wipro invests 10% of its total compensation package on training its people. The company relies very heavily on the acumen of its senior employees who have been in the company for over two decades.

Innovation, which comes from the creation of new knowledge, is the most important knowledge process for achieving competitive advantage. To gain maximum benefit from the new knowledge, it must be integrated into the organization. The knowledge life cycle is continuous. Understanding and optimizing the knowledge management processes can give an organization an edge regardless of its market segment.

Sustainability of Information Technology Industry:-

Information technology (IT) is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and Information industry The term in its modern sense first appeared in a 1958 article published in the Harvard in Information Technology Industry Review, in which authors Leavitt and Whisler commented that "the new technology does not yet have a single established name. We shall call it information technology (IT)."

IT is the area of managing technology and spans wide variety of areas that include but are not limited to personified effects such as processes, computer software, information systems, hardware, programming, and data constructs. In short, anything that renders data, information or perceived knowledge in any visual format whatsoever, via any multimedia distribution mechanism, is considered part of the domain space known as Information Technology (IT).


The Indian Information Technology industry accounts for a 5.8% of the country's GDP , while providing employment to a significant number of its tertiary sector workforce (NASSCOM). More than 2.5 million people are employed in the sector either directly or indirectly, making it one of the biggest job creators in India and a mainstay of the national economy. India's fundamental advantages—abundant talent and cost—are sustainable over the long term. With a young demographic profile and over 3.5 million graduates and postgraduates that are added annually to the talent base, no other country offers a similar mix and scale of human resources

India's outsourcing industry will reached its personified effects in turns of revenue which amount an unexpected increase to US$225 billion by 2020. Despite the unprecedented economic downturn the industry will witness sustainable growth. Greater focus on cost and operational efficiencies in the recessionary environment is expected to enhance global sourcing. India Inc would remain focused on personified effects of tactical measures to achieve cost savings and greater productivity. Services and software segments are estimated to cross USD 1.2 trillion by 2012. This is more than the 5.2 per cent growth expected in the total IT spending. The industry will continue to diversify in terms of geographies, verticals and service lines. Lack of working age population in the developed economies and a significant long term cost arbitrage indicates India's sustained cost competitiveness. Service providers are expected to enhance personified effects to focus to domestic market to de-risk in Information Technology Industry and tap into the local growth opportunities of the personified effects;

Indian References:-

[1] Mahajan Preeti, "Technological Impact on Information Technology: Prospects for Rajasthan" Centre of Excellence News, New Delhi, 2004.

[2] Singh B.P., Y. Upadhyaya, Information Technology in the New Millennium, Centre of Excellence News, New Delhi, 2002.

[3] Ghosh D.K., Higher Information Technology in the 21st Century Meeting the Challenge, Centre of Excellence News, New Delhi, 1996.

[4] Mishra Rajendra, "Evolutionary and Revolutionary: Information and Communication Technology"
University News, Vol 46, N0-1, January 2008

Dr. Ranjna Upadhyaya
Knowledge Executive
Banashtali Vidyapeeth
Village - Banasthali

Source: E-mail June 11, 2012


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