PAPER TOTOLAN UTS CKM docx
ADVANCED TOPICS IN INFORMATION SYSTEM
CUSTOMER KNOWLEDGE MANAGEMENT (CKM)
By :
Dian Islamiati A.L – 1601259823
Class :
LB11
Binus University
2014/2015
Jakarta
Abstract
Customer Knowledge is increasingly recognized in the marketing and business
world as a significant resource that can increase innovation and creativity to facilitate the
emerging market opportunities and developed very rapidly, and to support the
management of long-term relationship with the customer. Its collecting data about the
good market products and prices as well as competitors from various sources and has
long been recognized resources into a strategic key to the success of the company or
business. CKM as the process of generating, disseminating, and using customer
knowledge within a company or organization and between the organization and its
customers.
Purpose of this paper is to explain the role of Customer Knowledge Management
(CKM) to support and assist in the exchange of information within an organization and
between the organization and the customer company and where the knowledge of the
customer is used to manage the relationship with the customer, to improve the
relationship with the customer or commonly referred to as CRM as customer service,
customer retention and relationship profitability.
The method used is book study method is the method of data collection and all
materials or sources obtained from books, journals, and lecturer. From results of this
study produced an overview of Customer Knowledge Management (CKM). The
conclusion is that the Customer Knowledge Management will provide benefits for
Customer Success, Innovation and Learning organization. So that can be said that the
Customer Knowledge Management is not to know what was known customers but also
can be a learning experience and input for the company in distributing knowledge held by
the consumer and use it to create a greater value in the eyes of consumers.
Keywords: Customer, Knowledge, Management, CKM, Knowledge Management
Jakarta, April 2015
Author
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Contents
Title Page
Abstract…………………………………………………………………………………….i
Contents…………………………………………………………………………………...ii
List Of Picture and Table…………………………………………………………………iv
CHAPTER I (INTRODUCTION)
1.1 Background………………………………………………………………………..1
1.2 Scope………………………………………………………………………………2
1.3 Objective and Benefits…………………………………………………………….2
1.4 Method of Writing………………………………………………………………...3
CHAPTER II (THEORITICAL FRAMEWORK)
2.1 Customers…………………………………………………………………………4
2.1.1 Definiton of Customer………………………………………………………4
2.1.2 Customer Value……………………………………………………………..5
2.1.3 Value Received Customer (Customer Perceived Value)……………………6
2.2 Knowledge………………………………………………………………………..8
2.2.1 Definition of Knowledge……………………………………………………8
2.2.2 Type’s of Knowledge……………………………………………………….9
2.2.3 Methods For Creating Knowledge………………………………………...10
2.2.4 Wisdom……………………………………………………………………10
2.3 Knowledge Management………………………………………………………..11
2.3.1 Definition of Knowledge Management……………………………11
2.3.2 Type of Knowledge Management…………………………………11
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2.3.3 Components of Knowledge Management…………………………12
2.3.4 The Four Pillars of Knowledge Management Process…………….13
2.4 Customer Knowledge Management…………………………………………13
2.4.1 Definition of Customer Knowledge Management…………………13
CHAPTER III (RESULT and DISCUSSION)
3.1 Customer Knowledge Management………………………………………….14
3.2 Customer Knowledge Management Process Model…………………………15
3.3 Model Concept of Customer Knowledge Management……………………...16
3.4 Business Functions Customer Knowledge Management…………………….19
3.5 Implementation success factor of Customer Knowledge Management……...20
3.6 Five Types of Customer Knowledge Management………………………….21
3.7
General
Constraints
faced
in
implementing
Customer
Knowledge
Management………………………………………………………………….22
3.8 Competence of Customer Knowledge Management………………………...23
CHAPTER IV (CONCLUSION and RECOMMENDATIONS)
4.1 Conclusion………………………………………………………………..25
4.2 Suggestion………………………………………………………………...25
JOURNAL………………………………………………………………………………26
BIBLIOGRAPHY……………………………………………………………………....28
APPENDICES…………………………………………………………………………..29
BIOGRAPHY (attached)
3
List Of Picture
Picture 2.1 Determinants of Customer Delivered Value……………………………………..7
Picture 2.2 Customer Knowledge Management Process Model…………………………..15
Picture 2.3 Model Concept of Customer Knowledge Management……………………….17
Picture 2.4 Competence of Customer Knowledge Management………………………….24
List Of Table
Table 3.1 Characteristic of Knowledge in the enterprise……………………………………9
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PART I
INTRODUCTION
1.1 Background
With the times and technology, companies are also experiencing growth and change,
from of small-scale company to large-scale company. The Development was particularly
noticeable during the era of globalization, where information technology is growing rapidly
and fast. So that customers can get any information and anywhere. Previously done
business processes and manual or traditional way, are now beginning to use the process and
computerized. Automation Process purchase, sale and the transaction can be done quickly.
With the rapid development of business, especially in the implementation and use of
technology can drive business competition between companies. Everyone who runs a
business to be able to compete with the market share and inter-company, and also can make
new customers interested in using the products or services from our company. An important
step in business is what strategies will be used by the company to be able to compete with
other companies and seize the market to serve the customers and also maintain the trust and
customer satisfaction in the long term. One strategy that can be done is to change the
business paradigm into a customer-oriented company.
Most companies assume that they are driven by the market and customers. But there
are few companies that actually manage well, and according to them is the most valuable
resources, knowledge.
CKM is the process where by the company strategy liberate their customers from
passive recipients of products or services, to empowerment as knowledge. CKM is how to
obtain, variety, and expand knowledge of the customers.
Based on this background, the authors conclude that the cutomer Knowledge
Management is a topic that is well and good to discuss that with the topic of this paper are
the author eventually titled "Customer Knowledge Management (CKM)".
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1.2 Scope
Here is the scope of the author made are as follows:
1. Define Definition of Customer Knowledge Management.
2. Process Model of Customer Knowledge Management.
3. The model of Customer Knowledge Management concept.
4. Business Functions customer knowledge management.
5. Implementation Success Factors Customer Knowledge Management.
6. Five Styles (style) Customer Knowledge Management.
7. General Constraints faced in implementing Knowledge Management Customer.
8. Competence of Customer Knowledge Management
1.3 Objectives and Benefits
Here is the purpose of writing are as follows:
1. Customers can find out about the Customer Knowledge Management.
2. Knowing the benefits of Customer Knowledge Management.
3. Can know what are the factors of success and problems encountered in the
management of customer knowledge.
The benefits of this writing include the following:
1. Be able to apply knowledge management success factors in the field of business
for our company.
2. Can take advantage of customer knowledge management.
3. Can maximize customer in implementing knowledge management.
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1.4 Method of Writing
The method of writing the author uses methods of literary study that activities
undertaken to study the theories used, through some libraries such as reference books,
lectures, and internet.
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CHAPTER 2
THEORETICAL FRAMEWORK
2.1 Customers
2.1.1 Definition of Customer
By Philip Kotler (2000) in his book Prinsiples Of Marketing are all
individuals and households who buy or acquire goods or services for personal
consumption.
According to Robbins, various organizations exist to meet the needs of
customers. Customers who absorbs or receives the output of the organization.
Customers are those who are paying attention and response output issued by the
company. The customers clearly demonstrates the potential uncertainty for the
organization. Tastes of customers can change, they may be dissatisfied with the
products or services of that organization.
According to the expert opinions of customers can be divided into two, is :
a. Internal Customers
Customers who still have the next stage after getting the goods from the
seller .customer will work to offer the item to another person.
b. External Customers
Someone who is outside of marketing and only accept products or services
for its own use. Customers also doubles as a consumer, the difference is that
he bought goods on an ongoing basis to the seller or the same place.
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2.1.2 Customer Value
According to Ravald and Gronroos (2006 : 312) states that the value is the
ratio between episodes of relationship benefits and benefits plus relationship episodes
Sacrifice.
According to Kotler and Keller (2009 : 33) who, stating that customer value is
the difference between total customer benefit and the amount of customer cost (the
amount cost of the customer). "
The definition of customer value according to Zeithaml and Bitner in
Hurriyati Ruth (2008 : 205) is "customer value is low price, what I want in a product
or service, quality obtained from the price paid and what I can from what I give .
"from this definition of value in addition to a comparison between what was issued
with what is obtained, the value is also associated with lower monetary sacrifice as
well as the expected quality”.
Competition on a global scale requires fundamental shifts in the business
world. Basic mission of a business is no longer in the form of profit, but rather the
creation and addition of value (value creation and value added) for customers. Profit
is a logical consequence of the creation of value for the company. Based on that, it
can be said that profit is the result or consequence as compared Vendor destination.
Value for the customer is a unit of the aspect ratio of the product obtained the
promised product. Customer value received is the difference or ratio between the
number of customer value and the amount of customer cost.
But when customers obtain high value offered by competitors, organizations
require some action to maintain its market share. Value services can be expressed as
the ratio of the perceived outcome and quality of services relative to the price and
sacrifice issued the customer. Although actually the quantity value of services is
sometimes very difficult, many customers derive value from the comparison of the
past services. Some experts formulate the definition of customer value as the result of
a comparison or difference between perceived benefits, this opinion in expressed.
Some understanding of customer value according to the experts can be
interpreted in a consistent concept of economic sense : the values obtained are all the
results obtained by the customer from the field of products or services based on the
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perception of what is gained and what is given customer. There are two basic
equations according to the definition of the value of the subscribe according to
experts, the benefits received and expenses incurred. Understanding the value can be
summarized into a customer's perception of all benefits received compared with the
rest of the costs incurred as money and effort by the customer.
2.1.3 Value Received Customer (Customer Perceived Value)
According to Kotler and Keller (2009:135) : "The Value Proposition Consist
of the whole cluster of benefits the company promises to deliver. Its more than the
care of positioning of the offering "(The value proposition consists of a set of
usability in the company offer to its customers, its more than just positioning in the
offer)”.
An offer will be successful if it can deliver value Integration (value) and
satisfaction (satisfaction) to consumers. Company offers to the customers present in a
unit or package of benefits for customers who called the Value Proposition.
According to Morris, Value also known as "value for money" "best value" and
"you get what you pay for". Understanding of the perceived value is a thorough
evaluation of the usefulness of a product of an underlying consumer perceptions of a
number of benefits to be received in comparison with the sacrifices done in general or
consumer thinks.
After delivering the value proposition of the company will be able to customer
delivered value to the factors that influence can be seen from the chart below :
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Picture 2.1 Determinants of Customer Delivered Value
Source : Kotler dan Keller
(2009:133)
From the chart above as it appears that the customer delivered value is formed
by two main elements, is the total customer value and the amount of customer cost.
The amount customer value is the overall monetary value received by the
consumer from a set of usability that they expect from a bid. Usefulness here
including in its the usefulness of the economical, functional, and psychology.
The amount of customer cost is the amount cost of their consumers expect to
incur in evaluating, acquiring and using market quotes. If firms want to develop
its offer to the market, the company can do with three (3) ways to Kotler and
Keller (2009: 135) :
1. Increase the amount of customer value by improving the usability of
products, services, personnel and or impression of the company.
2. Reduce the cost of non-monetary consumer should be done by reducing
the cost of energy, time and physical.
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3. Reduce the monetary cost (price) of products that must be paid.
According to Kotler and Keller (2009:133) : "Customer perceived value
is the difference between the prospective customer's evaluation of all
benefits and all the costs of an offering and the perceive alternatives"
(Customer perceived value is the difference between the various uses and
costs evaluated the prospect of a supply and develop alternative accepted).
Customer delivered Value will eventually be accepted by consumers and
become what is the called with customer perceived value, (Customer perceived value
is the difference between the various uses and costs evaluated the prospect of a supply
and develop alternative accepted).
2.2 Knowledge
2.2.1 Definition of knowledge
According to Robert M.Z. Lawang, Knowledge is everything that happened or
is happening in one's daily life.
According to Probst et al, Knowledge is a composite whole of understanding
and expertise that individuals use to solve the problem, theory, and practice, everyday
rules, and instructions for action. Knowledge is created by individuals, and display
their believe about causal relationships.
According to Paul L. Tobing. Knowledge is information that is changing
something or someone. Or when such information enable other person or institution
to take different actions or measures are effective.
So the authors to conclude that, Knowledge is a collection of information held
by the individual, and serve as their expertise, and are used to solve problems or take
more effective action.
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2.2.2 Type’s of Knowledge
The type’s of knowledge by Lendy Widayana, is :
a. Tacit Knowledge is knowledge that is largely within the organization.
Something that we know and experience it is difficult to be expressed
clearly and completely. Tacit Knowledge is very difficult to be transferred
to others, because Knowledge is stored on each. Thoughts of individuals in
the organization according to their competence. Tacit Knowledge has two
dimensions:
- Technical dimension, which is more informal in doing something.
Technical dimensions the contain of principles and technical
knowledge and experience gained as relatively more difficult to
explain.
- Cognitive dimension, consisting of trust perception, idealism, values,
emotions and mental difficult to explain. This dimension will shape the
way a person receives everything that exists in the environment.
b. Explicit Knowledge is knowledge and experience about 'how to' described
in a straightforward and systematic.
c. Implicit Knowledge is knowledge that is not visible, located between tacit
and explicit.
Classification
Knowledge
Tacit
Explicit
Implicit
of Easily Communicated ?
Documented ?
No
No
Yes
Yes
Yes
No
Table 3.1 Characteristic of Knowledge in the enterprise
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2.2.3 Methods For Creating Knowledge
According to Davenport, the method can be used to create knowledge in
the company (five models of knowledge generation) is as follows :
1. Acquisition : rent, buy, or hire the person or company that has intangible
assets in accordance with company requirements. The intangible assets are
expected to provide the skills and experience to be developed within the
company, hire consultants, including one of them.
2. Decdicated resources, creating a specific unit responsible for the
development of ideas or new ideas. Formation or development of R & D
division is one example.
3. Fusion, of developing cooperation team consisting of a variety of people
from backgrounds or perspectives of different expertise to create synergies.
4. Adaptation, is make adjustments to market development. This is
particularly needed human resources able to absorb and utilize new
knowledge and skills quickly.
5. Network, namely knowledge resulting from the formation of a team of nonstructural and informal team formed by the employees based on specific
interests. If these teams are increasingly widespread in the enterprise
network will be formed. Networks can also be formed through direct talks,
via phone, via email, and groupware to share expertise and solve problems
together.
2.2.4 Wisdom
According to Davenport and Prusak Knowledge largely drawn from
experience. Which will produce sound judgment and wisdom. So wisdom is
knowledge that is used in making decisions concerning the future.
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Characteristics of wisdom by Ackof is :
1. An understanding Tertiary and high awareness of human.
2. Is the answer to human problems in a certain period of time has not been
answered.
3. Containing moral ethics.
4. Being in the soul and mind, which is only possessed by humans.
2.3 Knowledge Management
2.3.1 Definition of Knowledge Management
According to Townley, Knowledge Management is a set of the process of
creating and sharing knowledge throughout the organization to optimize the
achievement of the mission and goals of the organization. So, knowledge
management is about improving the use of organizational knowledge through
information management practices and organizational learning to achieve excellence
competitive in decision making.
2.3.2 Type of Knowledge Management
1. Collecting and reusing structured knowledge. There are many 'knowledge
in everyday life where the knowledge impact both directly and indirectly
to the life of an organization or company, where everything can be used
repeatedly - again without having any reexamination because it can
directly be used and can saving time.
2. Collect and share the lessons they have learned in practice - practice.
Within an organization or company in a work process real (practical)
which in practice can be taken advantage of an activity, where these
activities and can be used in the context of new construction.
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3. Create and map the structure of the knowledge required to improve
performance. This project provides such an influence on the development
of new products or redesign of business processes to make more explicit
or open of knowledge required at certain stages.
4. Measure and manage the economic value of knowledge. Many companies
have structured intellectual assets, such as patents, copyrights, software
licenses and customer database. By knowing all these assets allows the
company to create revenue and costs for the company.
5. Develop and disseminate knowledge from external sources. In this type of
knowledge management organizations prepare and distribute to the
members, with the expectation of an organization's mission is to be
realized by either.
2.3.3 Components of Knowledge Management
Implementation of knowledge management in organizations involves three
components:
1. Human, Successful application of knowledge management should be
supported by the availability of competent human. Where humans as the
main component of knowledge management in charge of implementing
the management process is to learn, improve, or drain knowledge.
2. Process. The process of knowledge management process will simplify
innovation or creation of knowledge and facilitate the transfer of
knowledge. Where humans as the party of running this process, can be
transfer his knowledge in the form of social networks and blogs and
technology based.
3. Technology. Technology will help collaboration and communication that
occurs in the process of knowledge management such as by capturing,
storing, and facilitate the use of information. After the process of human
knowledge - knowledge that they use, they can collaborate with
technology, where technology is helping simplify learning in terms of
management.
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2.3.4 The Four Pillars of Knowledge Management Process:
1. Creation of knowledge : when new knowledge is created through the
process of innovation thinking to achieve the goal of a new mission.
2. Transfer of knowledge : when equalize and share knowledge through
knowledge transfer.
3. The use of knowledge : when knowledge is used in the organization and
apply them in achieving the mission or goals of the organization or
company.
4. Storage of knowledge : when saving the current experience and past to the
use or creation of new knowledge in the future. This stage is the stage that
is most easily implemented.
2.4 Customer Knowledge Management
2.4.1 Definition of Customer Knowledge Management
According to Paquette, Customer Knowledge Management is a process to
manage, identification of acquisition and use of knowledge consumers
collectively as the process that the company employs to manage the
identification, acquisition, and internal use of customer knowledge.
According to Chen, Customer Knowledge Management has been
characterized as an innovative practice for finding and using two types of
customer knowledge, it is knowledge about the customer and the
knowledge of the customer. This is a practice and philosophy of coaching,
identify, and transfer of tacit and explicit knowledge of customers to and
through the learning organization. This is an important element of
feedback loops that affect innovation and the evolution of market supply
recognizing the customer and then managing intellectual assets is a source
for product development, project management, and business success. Also
proposed a conceptual framework for the model E-CKM with incorporate
IT into CKM models..
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CHAPTER 3
RESULT and DISCUSSION
3.1 Customer Knowledge Management
CKM relating to the management and exploitation of knowledge of the
customer. There are two types of customer knowledge :
1. Knowledge about customers, which may include knowledge of potential
customers and customer segments as well as knowledge about individual
customers.
2. Knowledge of the customers, about the range of products, such as
compatibility between hardware components of a computer, and on the
wider context and the market in which products and services are delivered.
The process can be classified into 3 categories:
a. Knowledge about customers is accumulated to understand the
motivations of customers and address them in a personal way.
b. Knowledge to customers, includes knowledge about products, markets
and suppliers.
c. Knowledge of customers, ideas, thoughts, creativity or experience
consumption of certain products.
Knowledge is expanding the understanding of the marketing process that can
be measured by evaluating factors awareness, control factors, and application of
knowledge in new markets. They also realize that there is a consensus as to how the
knowledge of marketing should be defined and measured. CKM role is to capture and
organize this data allows to be shared and discussed throughout the organization.
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3.2 Customer Knowledge Management Process Model
Here is the process of Customer Knowledge Management Model proposed by
Gebbert et al (2002)
Picture 2.2 Customer Knowledge Management Process Model (Gebbert et al,2002)
In the picture above models Customer Knowledge Management, Knowledge
Management Gibbert explains that has particularly the role as a service provider that
manages four aspects, is knowledge of content, competence, collaboration, and
composition. The process illustrates perspective to illustrate the process of knowledge
management can be applied to the sub-CRM in the process explained that the information
held by companies from marketing, sales and service will be collaborated into a product or
service that is then entered into the consumer process.
Four aspects of knowledge management in CKM models : content, competence,
collaboration, and composition. Aspects of knowledge management is to provide services
that support the process of CRM and direct impact on process performance. Aspects of the
content refers to content management and document management. Aspects of competence
refers to the good management implicit and explicit knowledge in an individual in the
performance of duty.
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This is supported by technologies such as directory system expertise, management
skills, and the system of E-Learning. Aspects of collaboration refers to the creation and
dissemination of knowledge management among some individuals, while aspects of the
composition refers to the dissemination and use of knowledge management among a
number of individuals within an organization. Bueren et al (2004) further describes a
technology for collaboration to include e-mail, group information and technology tools for
composition, which focuses on search and navigation for explicit knowledge, can include
accretion of knowledge, personalization, taxonomy and knowledge management system
map. The four aspects of management CKM for EKM to include suppliers of knowledge
management and knowledge management where content partners, competency,
collaboration, and composition provide services that support the process in CRM, SRM,
and PRM.
3.3 Model Concept of Customer Knowledge Management
In the picture above models Customer Knowledge Management, Knowledge
Management Gibbert explains that have a role as a service provider that manages four
aspects of knowledge, is : content, competence, collaboration and composition. It
represents the perspective to illustrate the process of knowledge management can be
applied to the sub-CRM Customer Knowledge Management in achieving effective.
In the process explained that the information held by companies from marketing,
sales, and service will be collaborated into a product or service that is then entered into the
consumer process. In addition to the above model, according Mehdi Zanjani et al Shami
(2008) created a model that can assist organizations in understanding the concept of
Customer Knowledge Management.
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Picture 2.3 Model Concept of Customer Knowledge Management
The model described above explains that the first layer categorize three types of
consumer knowledge, is knowledge to customers, knowledge of the customer and the
knowledge of the customer. The next layer of knowledge categories given by the
organization to consumers. Then on the last layer is a detailed section of each category are
given to consumer knowledge of the organization. Division contained in the above models
can help any organization that wants to implement a Customer Knowledge Management.
Customer Knowledge Management will provide advantages Customer Success, Innovation,
and organization learning. So it can been said that the Customer Knowledge Management
not pinpoint what is known by consumers, but may be more learning for the company to
distribute the knowledge possessed by consumers and use it to create a greater value in the
eyes of consumers.
One of the most important of a Customer Knowledge Management is the
Customer Knowledge is changing into Explicit Knowledge to Tacit Knowledge, and this
means that a knowledge previously only latent in the minds and thoughts of each individual
must be able to be modified in writing or explicit so that knowledge previously only
belongs to an individual may be shared with other people or in a broader scope, owned by
the organization in which he ruled, so that knowledge can be useful for many people and
organizations. There are many benefits of the application of knowledge management in a
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company or organization, there are at least three benefits that can be obtained from the
company, is Standarized Activity Process, System-Based Organizational Structure etc.
The first benefit of the application of Knowledge Management is a Standardized
Process Activity. From the example above incident, it appears that the lack of explict
Knowledge on-line activities of the company led to the company running sober without a
clear operational standards and impressed. In the era of increasingly competitive business
rivalry as it is today, is in fact not a wise thing when a company has entered into a climate
of intense competition, still rely on Tacit Knowledge Person by Person in the absence of a
clear written standards.
The next benefit of the application of Knowledge Management is a System-Based
Organizational Structure, with the presence of Explicit Knowledge on each line of activity
in the company, especially in activities that are considered as Core Activity, will make the
company into an organization based system or System-Based Structure Oragnizational.
Another benefit of the application of Knowledge Management is Easier and
Faster Business Development. With the existence of an Explicit Knowledge in the form of
operating system written and organized and of course run by the perpetrators activity with
discipline and commitment, of course, it will be easier in the stage of evaluating a
company's operating system. Regardless of the outcome when an operational activity has
been written and systemized well, will facilitate the evaluation of performance and
achievement of the company, both the evaluation system and the personnel of the system
actors.
There are many ways the application of Knowledge Management is a company
that is a focus of concern future is changing into Explicit Knowledge to Tacit Knowledge.
One of the easiest ways to change Tacit Knowledge becomes Explicit knoweledge is
"systemize the routine and Humanize the Exception". This method is considered easy
because it takes the actual business owners just careful observation of the activities of its
operational routine and then recorded the process flow as well as revamped in hardcopy.
Objective of Customer Knowledge Management is collaborating with customers
to Join Value creatio. This is in contrast with the objective of Knowledge Management and
Customer Relationship Management, where the two fields are not cooperating with
consumers. Knowledge Management only obtain retention of consumers, while the
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Customer Knowledge Management will provide advantages Customer Success, Innovation,
and Organizarion Learning. So it can be said that the Customer Knowledge Management is
not to know what was known by consumers, but may be more learning for the company to
distribute the knowledge possessed by consumers and use it to create a greater value in the
eyes of consumers.
3.4 Business Functions Customer Knowledge Management
CKM consists in terms of business functions:
a. Marketing.
b. Marketing research.
c. Marketing information system.
d. Customer profile.
e. Customer Analysis.
f. Customer relationship management.
Data and information gathered customer level, the level of market segments and the
overall level of customer profiles business, then processed and converted into customer
knowledge for organizational learning materials and change organizational behavior. CKM
effectiveness requires active customer involvement in decision-making companies.
Business-to-customer communication to distinguish and separate the business products and
services from competitors:
• Direct communication at the level of customer service.
• Public relations.
• Marketing Strategy.
- Communication-business customers to identify demographic, psychographic and
information related to deploying and competitors:
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• Data mining.
• Survey.
• Data warehousing.
- Customer-to customer communications to monitor gain insight and knowledge to
distinguish customers:
• Weblogs.
• Discussion forums.
• Observation.
- Challenges for CKM include:
• Translating and transferring knowledge into knowledge Tacit Explicit.
• Changes in organizational culture.
• Develop strategies KM.
Results CKM is a synergy of collaboration and increased value to customers by:
• Superior products and services.
• Facilitate the commitment and customer loyalty.
• Increase the innovation, development and growth of products and services.
3.5 Implementation success factor of Customer Knowledge Management :
1. Leadership
To be more organized a company should have a Chief Knowledge Officer
(CKO), which acts as a leader who manages the organization within the company.
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2. Culture
Standard culture within an enterprise is an effective productivity time, respect each
other, the same angle, and maintain a good two-way communication.
3. The structure, roles and responsibilities
CKM company that takes care of the organization should be composed of people
who are clearly in the structure of its staff, so that they can be responsible for their
jobdesk.
4. IT Infrastructure
IT standards used must have the content, appearance and standard technology used
by the public, so that will be effective for all parties can terlinat well even from nonIT though.
5. Measurement
Companies must take measurements or valuation value if appropriate application
of existing standards or not. Companies must find the best way in every procedure
that takes place in order to grow optimally.
3.6 Five Types of Customer Knowledge Management
a. Communities Of Creation
Another approach is generally used by every company in managing customer
knowledge management is to create a community of consumers of a product or brand.
b. Prosumerism
Prosumer is a term to explain that consumers can play a dual role, namely to
become producers and consumers. The Company may collect any information from
consumers about their desires. Dual role played by consumers to be one effective
approach for a company because of what they get or what the companies have
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obtained is derived from the desire of every consumer and the results do not have to
worry anymore, because the product is derived from consumers.
c. Mutual Innovation
Innovation on a product is created from the end user or consumer does not come
from internal sources for consumers who feel the product so that they have a quality
ideas according to their views. Companies can use this to make a new innovation in
the market by working with consumers in expressing their thoughts on a product and
accommodate all their desires.
d, Team-based co-Learning
In addition to a double play as noted above, consumers also can be part of a
team for the company in order to improve the quality and consumer satisfaction.
Companies can establish relationships with customers and opening up to all the
information and knowledge that they have, and together with them to share
knowledge to improve the performance of the company.
e. Joint Intellectual Property
The company created an idea among consumers that they are a part of the
company. This can be done by working closely with customers and regard themselves
as belonging to the company is the consumer.
3.7 General Constraints faced in implementing Knowledge Management Customer
1. Inability organizational infrastructure and processes to deal with the use of
knowledge of consumers. In managing customer knowledge, companies should look
into the company's internal, what they have to support.
2. The issue of trust and protection are not sufficiently emphasized
Between companies and consumers should create a sense of mutual
understanding, trust, and each must be kept secret and agreed to be applied
22
consistently. Companies must look more closely at the background of every consumer
that when applying the Customer Knowledge Management each party awake feelings.
3. Application of Customer Knowledge Management with the wrong mindset
Wrong thinking occurs when companies have thought that the Customer
Knowledge Management is a tool to increase customer knowledge. This will be a
barrier for the purpose of Customer Knowledge Management is to create value for
consumers in the long run that will be beneficial to the development of the company's
business. In managing the knowledge of consumers, companies also need to maintain
the values and knowledge of their customers as partners rather than as a source of
knowledge.
4. Dependence of the knowledge of the consumer
Companies should not depend on consumer knowledge alone but must perform
data processing and further research on the knowledge possessed by consumers.
5. Diversity ignored customers
Often companies generalize perceptions and thoughts of the customers so that
they only apply one or two Customer Knowledge Management approach for its
customers and the result is what has been applied is not effective because people
basically have thoughts and desires are different. Therefore, companies should not
only look at the customer a general outline but should be grouped into categories that
represent each of their thinking.
3.8 Competence of Customer Knowledge Management
Competence customer knowledge management can be divided into four sections:
1.
Customer Information Process
Customer information is a process of organizational processes that generate
customer knowledge. Customer information process leads to a set of behavioral activity
23
of the customer to gain knowledge about customers who may include the need for a
product or service.
2. Marketing-IT Interface
Marketing-IT interfaces lead to the marketing process and communicate
information technology functions.
3. Senior Management Involvement
Senior management refers to the top management that supports the integration of
customer knowledge within the company.
4. Employee & Evaluation System
Employee and evaluation system refers to the behavior of employees in line with
the objectives of the company to produce and integrate customer knowledge in the
company's marketing strategy.
Picture 2.4 Competence of Customer Knowledge Management
24
CHAPTER 4
CONCLUSION and RECOMMENDATIONS
4.1 Conclusions
After analyzing this paper, the authors conclude some conclusions are as follows:
• CKM as a strong competitive potential, which contribute to the increased success
of the company and their customers.
• CKM create new knowledge sharing platform and processes between companies
and their customers.
• Sustainable strategy by which companies allow their customers to move from
passive information sources and recipients of products and services to knowledge.
4.2 Suggestions
After analyzing this paper, the authors give some suggestion as follows:
• The company has more knowledge about the CKM so as to reduce
misunderstandings.
• Companies can apply from five styles CKM.
25
Journals About Customer Knowledge Management
Definition of CKM according to Zhang (2011) in the journal entitled "Customer
Knowledge Management and The Strategies of Social Software" is a process to capture,
share, apply the data, information, and knowledge associated with the customer to benefit
the company.
According Paquette (2006) quoted by God, Shahin, Tabanifar (2012) in the journal
entitled "Analysis of Relationship between Knowledge Management and Customer
Relationship Management with Customer Knowledge Management" Customer Knowledge
is knowledge that is in the middle of the customer, not the knowledge of the customer
itself, but rather a process to manage, identification, acquisition, and use of customer
knowledge collectively referred to as Customer Knowledge Management.
According Sofianti, Suryadi, Govindaraju and Prihartono (2009) in the journal titled
"Transformation of Customer Knowledge Management Through Social CRM "explains
that the CKM described as an ongoing process for generating, disseminating and using
customer knowledge within the company. CKM is understood as a holistic business model
that is the result of the integration of some of the concepts, techniques, and methodologies
related to each other and rooted in the people, processes, and technology, aimed at creating
loyal and profitable customer (Al-Shammari, 2009: 19).
According to Gilbert (2003) and Bosch (2000) quoted by Nejatian, Sentosa and Piaralal
(2011) in the journal entitled "The Influence of Customer Knowledge on CRM
Performance of Malaysian ICT Companies: A Structural Equation Modeling Approach"
says CK is a dynamic combination of customer, value and insight needed information,
created, and absorbed during the process of the transaction and the exchange between the
customer and the company.
According to Akhavan (2008), quoted by Outila (2011) in the journal entitled "Customer
Knowledge Utilization In Retail Decision-Making" CKM benefit for the company is
finding opportunities of competition and create economic value of the company's
shareholders and customers.
26
According Ogunde et al. (2010) in the journal entitled "Towards an Agent-Based
Customer Knowledge Management System (ABCKMS) in E-Commerce Organizations",
CKM used to support knowledge between companies and customers to make the right
decision.
Bibliography
Davenport, T. a. (1998). Working Knowledge : How Organization Manage What They Know. USA: Harvard
Business School.
Gibbert M, L. M. (2002). Five Style of Customer Knowledge Management and How Smart Companies Use
Them To Create Value. European Management Journal, 459-469.
Laudon, K. C. (2002). Management Information System. Managing the Digital Firm7. New Jersey:
Prentice-Hall.
27
Malhotra, Y. (1998). Knowledge Management Organization & Knowledge Workers : A View From the
Front Line.
Rowley, J. (2002). Eight question for CKM in e-business. Journal of Knowledge Management, 500-511.
Tunggal, A. W. (2000). Konsep Dasar Customer Relationship Management. Jakarta: Heravindo.
Wilde, S. (2011). Customer Knowledge Management Improvement Customer Relationship Through
Knowledge Aplication. Spinger.
APPENDICES
28
Picture 2.1 Determinants of Customer Delivered Value
Picture 2.2 Customer Knowledge Management Process Model
29
Picture 2.3 Model Concept of Customer Knowledge Management
Picture 2.4 Competence of Customer Knowledge Management
Classification
Knowledge
Tacit
Explicit
Implicit
of Easily Communicated ?
No
Yes
Yes
Documented ?
No
Yes
No
Table 3.1 Characteristic of Knowledge in the
enterprise
30
CUSTOMER KNOWLEDGE MANAGEMENT (CKM)
By :
Dian Islamiati A.L – 1601259823
Class :
LB11
Binus University
2014/2015
Jakarta
Abstract
Customer Knowledge is increasingly recognized in the marketing and business
world as a significant resource that can increase innovation and creativity to facilitate the
emerging market opportunities and developed very rapidly, and to support the
management of long-term relationship with the customer. Its collecting data about the
good market products and prices as well as competitors from various sources and has
long been recognized resources into a strategic key to the success of the company or
business. CKM as the process of generating, disseminating, and using customer
knowledge within a company or organization and between the organization and its
customers.
Purpose of this paper is to explain the role of Customer Knowledge Management
(CKM) to support and assist in the exchange of information within an organization and
between the organization and the customer company and where the knowledge of the
customer is used to manage the relationship with the customer, to improve the
relationship with the customer or commonly referred to as CRM as customer service,
customer retention and relationship profitability.
The method used is book study method is the method of data collection and all
materials or sources obtained from books, journals, and lecturer. From results of this
study produced an overview of Customer Knowledge Management (CKM). The
conclusion is that the Customer Knowledge Management will provide benefits for
Customer Success, Innovation and Learning organization. So that can be said that the
Customer Knowledge Management is not to know what was known customers but also
can be a learning experience and input for the company in distributing knowledge held by
the consumer and use it to create a greater value in the eyes of consumers.
Keywords: Customer, Knowledge, Management, CKM, Knowledge Management
Jakarta, April 2015
Author
1
Contents
Title Page
Abstract…………………………………………………………………………………….i
Contents…………………………………………………………………………………...ii
List Of Picture and Table…………………………………………………………………iv
CHAPTER I (INTRODUCTION)
1.1 Background………………………………………………………………………..1
1.2 Scope………………………………………………………………………………2
1.3 Objective and Benefits…………………………………………………………….2
1.4 Method of Writing………………………………………………………………...3
CHAPTER II (THEORITICAL FRAMEWORK)
2.1 Customers…………………………………………………………………………4
2.1.1 Definiton of Customer………………………………………………………4
2.1.2 Customer Value……………………………………………………………..5
2.1.3 Value Received Customer (Customer Perceived Value)……………………6
2.2 Knowledge………………………………………………………………………..8
2.2.1 Definition of Knowledge……………………………………………………8
2.2.2 Type’s of Knowledge……………………………………………………….9
2.2.3 Methods For Creating Knowledge………………………………………...10
2.2.4 Wisdom……………………………………………………………………10
2.3 Knowledge Management………………………………………………………..11
2.3.1 Definition of Knowledge Management……………………………11
2.3.2 Type of Knowledge Management…………………………………11
2
2.3.3 Components of Knowledge Management…………………………12
2.3.4 The Four Pillars of Knowledge Management Process…………….13
2.4 Customer Knowledge Management…………………………………………13
2.4.1 Definition of Customer Knowledge Management…………………13
CHAPTER III (RESULT and DISCUSSION)
3.1 Customer Knowledge Management………………………………………….14
3.2 Customer Knowledge Management Process Model…………………………15
3.3 Model Concept of Customer Knowledge Management……………………...16
3.4 Business Functions Customer Knowledge Management…………………….19
3.5 Implementation success factor of Customer Knowledge Management……...20
3.6 Five Types of Customer Knowledge Management………………………….21
3.7
General
Constraints
faced
in
implementing
Customer
Knowledge
Management………………………………………………………………….22
3.8 Competence of Customer Knowledge Management………………………...23
CHAPTER IV (CONCLUSION and RECOMMENDATIONS)
4.1 Conclusion………………………………………………………………..25
4.2 Suggestion………………………………………………………………...25
JOURNAL………………………………………………………………………………26
BIBLIOGRAPHY……………………………………………………………………....28
APPENDICES…………………………………………………………………………..29
BIOGRAPHY (attached)
3
List Of Picture
Picture 2.1 Determinants of Customer Delivered Value……………………………………..7
Picture 2.2 Customer Knowledge Management Process Model…………………………..15
Picture 2.3 Model Concept of Customer Knowledge Management……………………….17
Picture 2.4 Competence of Customer Knowledge Management………………………….24
List Of Table
Table 3.1 Characteristic of Knowledge in the enterprise……………………………………9
4
PART I
INTRODUCTION
1.1 Background
With the times and technology, companies are also experiencing growth and change,
from of small-scale company to large-scale company. The Development was particularly
noticeable during the era of globalization, where information technology is growing rapidly
and fast. So that customers can get any information and anywhere. Previously done
business processes and manual or traditional way, are now beginning to use the process and
computerized. Automation Process purchase, sale and the transaction can be done quickly.
With the rapid development of business, especially in the implementation and use of
technology can drive business competition between companies. Everyone who runs a
business to be able to compete with the market share and inter-company, and also can make
new customers interested in using the products or services from our company. An important
step in business is what strategies will be used by the company to be able to compete with
other companies and seize the market to serve the customers and also maintain the trust and
customer satisfaction in the long term. One strategy that can be done is to change the
business paradigm into a customer-oriented company.
Most companies assume that they are driven by the market and customers. But there
are few companies that actually manage well, and according to them is the most valuable
resources, knowledge.
CKM is the process where by the company strategy liberate their customers from
passive recipients of products or services, to empowerment as knowledge. CKM is how to
obtain, variety, and expand knowledge of the customers.
Based on this background, the authors conclude that the cutomer Knowledge
Management is a topic that is well and good to discuss that with the topic of this paper are
the author eventually titled "Customer Knowledge Management (CKM)".
1
1.2 Scope
Here is the scope of the author made are as follows:
1. Define Definition of Customer Knowledge Management.
2. Process Model of Customer Knowledge Management.
3. The model of Customer Knowledge Management concept.
4. Business Functions customer knowledge management.
5. Implementation Success Factors Customer Knowledge Management.
6. Five Styles (style) Customer Knowledge Management.
7. General Constraints faced in implementing Knowledge Management Customer.
8. Competence of Customer Knowledge Management
1.3 Objectives and Benefits
Here is the purpose of writing are as follows:
1. Customers can find out about the Customer Knowledge Management.
2. Knowing the benefits of Customer Knowledge Management.
3. Can know what are the factors of success and problems encountered in the
management of customer knowledge.
The benefits of this writing include the following:
1. Be able to apply knowledge management success factors in the field of business
for our company.
2. Can take advantage of customer knowledge management.
3. Can maximize customer in implementing knowledge management.
2
1.4 Method of Writing
The method of writing the author uses methods of literary study that activities
undertaken to study the theories used, through some libraries such as reference books,
lectures, and internet.
3
CHAPTER 2
THEORETICAL FRAMEWORK
2.1 Customers
2.1.1 Definition of Customer
By Philip Kotler (2000) in his book Prinsiples Of Marketing are all
individuals and households who buy or acquire goods or services for personal
consumption.
According to Robbins, various organizations exist to meet the needs of
customers. Customers who absorbs or receives the output of the organization.
Customers are those who are paying attention and response output issued by the
company. The customers clearly demonstrates the potential uncertainty for the
organization. Tastes of customers can change, they may be dissatisfied with the
products or services of that organization.
According to the expert opinions of customers can be divided into two, is :
a. Internal Customers
Customers who still have the next stage after getting the goods from the
seller .customer will work to offer the item to another person.
b. External Customers
Someone who is outside of marketing and only accept products or services
for its own use. Customers also doubles as a consumer, the difference is that
he bought goods on an ongoing basis to the seller or the same place.
4
2.1.2 Customer Value
According to Ravald and Gronroos (2006 : 312) states that the value is the
ratio between episodes of relationship benefits and benefits plus relationship episodes
Sacrifice.
According to Kotler and Keller (2009 : 33) who, stating that customer value is
the difference between total customer benefit and the amount of customer cost (the
amount cost of the customer). "
The definition of customer value according to Zeithaml and Bitner in
Hurriyati Ruth (2008 : 205) is "customer value is low price, what I want in a product
or service, quality obtained from the price paid and what I can from what I give .
"from this definition of value in addition to a comparison between what was issued
with what is obtained, the value is also associated with lower monetary sacrifice as
well as the expected quality”.
Competition on a global scale requires fundamental shifts in the business
world. Basic mission of a business is no longer in the form of profit, but rather the
creation and addition of value (value creation and value added) for customers. Profit
is a logical consequence of the creation of value for the company. Based on that, it
can be said that profit is the result or consequence as compared Vendor destination.
Value for the customer is a unit of the aspect ratio of the product obtained the
promised product. Customer value received is the difference or ratio between the
number of customer value and the amount of customer cost.
But when customers obtain high value offered by competitors, organizations
require some action to maintain its market share. Value services can be expressed as
the ratio of the perceived outcome and quality of services relative to the price and
sacrifice issued the customer. Although actually the quantity value of services is
sometimes very difficult, many customers derive value from the comparison of the
past services. Some experts formulate the definition of customer value as the result of
a comparison or difference between perceived benefits, this opinion in expressed.
Some understanding of customer value according to the experts can be
interpreted in a consistent concept of economic sense : the values obtained are all the
results obtained by the customer from the field of products or services based on the
5
perception of what is gained and what is given customer. There are two basic
equations according to the definition of the value of the subscribe according to
experts, the benefits received and expenses incurred. Understanding the value can be
summarized into a customer's perception of all benefits received compared with the
rest of the costs incurred as money and effort by the customer.
2.1.3 Value Received Customer (Customer Perceived Value)
According to Kotler and Keller (2009:135) : "The Value Proposition Consist
of the whole cluster of benefits the company promises to deliver. Its more than the
care of positioning of the offering "(The value proposition consists of a set of
usability in the company offer to its customers, its more than just positioning in the
offer)”.
An offer will be successful if it can deliver value Integration (value) and
satisfaction (satisfaction) to consumers. Company offers to the customers present in a
unit or package of benefits for customers who called the Value Proposition.
According to Morris, Value also known as "value for money" "best value" and
"you get what you pay for". Understanding of the perceived value is a thorough
evaluation of the usefulness of a product of an underlying consumer perceptions of a
number of benefits to be received in comparison with the sacrifices done in general or
consumer thinks.
After delivering the value proposition of the company will be able to customer
delivered value to the factors that influence can be seen from the chart below :
6
Picture 2.1 Determinants of Customer Delivered Value
Source : Kotler dan Keller
(2009:133)
From the chart above as it appears that the customer delivered value is formed
by two main elements, is the total customer value and the amount of customer cost.
The amount customer value is the overall monetary value received by the
consumer from a set of usability that they expect from a bid. Usefulness here
including in its the usefulness of the economical, functional, and psychology.
The amount of customer cost is the amount cost of their consumers expect to
incur in evaluating, acquiring and using market quotes. If firms want to develop
its offer to the market, the company can do with three (3) ways to Kotler and
Keller (2009: 135) :
1. Increase the amount of customer value by improving the usability of
products, services, personnel and or impression of the company.
2. Reduce the cost of non-monetary consumer should be done by reducing
the cost of energy, time and physical.
7
3. Reduce the monetary cost (price) of products that must be paid.
According to Kotler and Keller (2009:133) : "Customer perceived value
is the difference between the prospective customer's evaluation of all
benefits and all the costs of an offering and the perceive alternatives"
(Customer perceived value is the difference between the various uses and
costs evaluated the prospect of a supply and develop alternative accepted).
Customer delivered Value will eventually be accepted by consumers and
become what is the called with customer perceived value, (Customer perceived value
is the difference between the various uses and costs evaluated the prospect of a supply
and develop alternative accepted).
2.2 Knowledge
2.2.1 Definition of knowledge
According to Robert M.Z. Lawang, Knowledge is everything that happened or
is happening in one's daily life.
According to Probst et al, Knowledge is a composite whole of understanding
and expertise that individuals use to solve the problem, theory, and practice, everyday
rules, and instructions for action. Knowledge is created by individuals, and display
their believe about causal relationships.
According to Paul L. Tobing. Knowledge is information that is changing
something or someone. Or when such information enable other person or institution
to take different actions or measures are effective.
So the authors to conclude that, Knowledge is a collection of information held
by the individual, and serve as their expertise, and are used to solve problems or take
more effective action.
8
2.2.2 Type’s of Knowledge
The type’s of knowledge by Lendy Widayana, is :
a. Tacit Knowledge is knowledge that is largely within the organization.
Something that we know and experience it is difficult to be expressed
clearly and completely. Tacit Knowledge is very difficult to be transferred
to others, because Knowledge is stored on each. Thoughts of individuals in
the organization according to their competence. Tacit Knowledge has two
dimensions:
- Technical dimension, which is more informal in doing something.
Technical dimensions the contain of principles and technical
knowledge and experience gained as relatively more difficult to
explain.
- Cognitive dimension, consisting of trust perception, idealism, values,
emotions and mental difficult to explain. This dimension will shape the
way a person receives everything that exists in the environment.
b. Explicit Knowledge is knowledge and experience about 'how to' described
in a straightforward and systematic.
c. Implicit Knowledge is knowledge that is not visible, located between tacit
and explicit.
Classification
Knowledge
Tacit
Explicit
Implicit
of Easily Communicated ?
Documented ?
No
No
Yes
Yes
Yes
No
Table 3.1 Characteristic of Knowledge in the enterprise
9
2.2.3 Methods For Creating Knowledge
According to Davenport, the method can be used to create knowledge in
the company (five models of knowledge generation) is as follows :
1. Acquisition : rent, buy, or hire the person or company that has intangible
assets in accordance with company requirements. The intangible assets are
expected to provide the skills and experience to be developed within the
company, hire consultants, including one of them.
2. Decdicated resources, creating a specific unit responsible for the
development of ideas or new ideas. Formation or development of R & D
division is one example.
3. Fusion, of developing cooperation team consisting of a variety of people
from backgrounds or perspectives of different expertise to create synergies.
4. Adaptation, is make adjustments to market development. This is
particularly needed human resources able to absorb and utilize new
knowledge and skills quickly.
5. Network, namely knowledge resulting from the formation of a team of nonstructural and informal team formed by the employees based on specific
interests. If these teams are increasingly widespread in the enterprise
network will be formed. Networks can also be formed through direct talks,
via phone, via email, and groupware to share expertise and solve problems
together.
2.2.4 Wisdom
According to Davenport and Prusak Knowledge largely drawn from
experience. Which will produce sound judgment and wisdom. So wisdom is
knowledge that is used in making decisions concerning the future.
10
Characteristics of wisdom by Ackof is :
1. An understanding Tertiary and high awareness of human.
2. Is the answer to human problems in a certain period of time has not been
answered.
3. Containing moral ethics.
4. Being in the soul and mind, which is only possessed by humans.
2.3 Knowledge Management
2.3.1 Definition of Knowledge Management
According to Townley, Knowledge Management is a set of the process of
creating and sharing knowledge throughout the organization to optimize the
achievement of the mission and goals of the organization. So, knowledge
management is about improving the use of organizational knowledge through
information management practices and organizational learning to achieve excellence
competitive in decision making.
2.3.2 Type of Knowledge Management
1. Collecting and reusing structured knowledge. There are many 'knowledge
in everyday life where the knowledge impact both directly and indirectly
to the life of an organization or company, where everything can be used
repeatedly - again without having any reexamination because it can
directly be used and can saving time.
2. Collect and share the lessons they have learned in practice - practice.
Within an organization or company in a work process real (practical)
which in practice can be taken advantage of an activity, where these
activities and can be used in the context of new construction.
11
3. Create and map the structure of the knowledge required to improve
performance. This project provides such an influence on the development
of new products or redesign of business processes to make more explicit
or open of knowledge required at certain stages.
4. Measure and manage the economic value of knowledge. Many companies
have structured intellectual assets, such as patents, copyrights, software
licenses and customer database. By knowing all these assets allows the
company to create revenue and costs for the company.
5. Develop and disseminate knowledge from external sources. In this type of
knowledge management organizations prepare and distribute to the
members, with the expectation of an organization's mission is to be
realized by either.
2.3.3 Components of Knowledge Management
Implementation of knowledge management in organizations involves three
components:
1. Human, Successful application of knowledge management should be
supported by the availability of competent human. Where humans as the
main component of knowledge management in charge of implementing
the management process is to learn, improve, or drain knowledge.
2. Process. The process of knowledge management process will simplify
innovation or creation of knowledge and facilitate the transfer of
knowledge. Where humans as the party of running this process, can be
transfer his knowledge in the form of social networks and blogs and
technology based.
3. Technology. Technology will help collaboration and communication that
occurs in the process of knowledge management such as by capturing,
storing, and facilitate the use of information. After the process of human
knowledge - knowledge that they use, they can collaborate with
technology, where technology is helping simplify learning in terms of
management.
12
2.3.4 The Four Pillars of Knowledge Management Process:
1. Creation of knowledge : when new knowledge is created through the
process of innovation thinking to achieve the goal of a new mission.
2. Transfer of knowledge : when equalize and share knowledge through
knowledge transfer.
3. The use of knowledge : when knowledge is used in the organization and
apply them in achieving the mission or goals of the organization or
company.
4. Storage of knowledge : when saving the current experience and past to the
use or creation of new knowledge in the future. This stage is the stage that
is most easily implemented.
2.4 Customer Knowledge Management
2.4.1 Definition of Customer Knowledge Management
According to Paquette, Customer Knowledge Management is a process to
manage, identification of acquisition and use of knowledge consumers
collectively as the process that the company employs to manage the
identification, acquisition, and internal use of customer knowledge.
According to Chen, Customer Knowledge Management has been
characterized as an innovative practice for finding and using two types of
customer knowledge, it is knowledge about the customer and the
knowledge of the customer. This is a practice and philosophy of coaching,
identify, and transfer of tacit and explicit knowledge of customers to and
through the learning organization. This is an important element of
feedback loops that affect innovation and the evolution of market supply
recognizing the customer and then managing intellectual assets is a source
for product development, project management, and business success. Also
proposed a conceptual framework for the model E-CKM with incorporate
IT into CKM models..
13
CHAPTER 3
RESULT and DISCUSSION
3.1 Customer Knowledge Management
CKM relating to the management and exploitation of knowledge of the
customer. There are two types of customer knowledge :
1. Knowledge about customers, which may include knowledge of potential
customers and customer segments as well as knowledge about individual
customers.
2. Knowledge of the customers, about the range of products, such as
compatibility between hardware components of a computer, and on the
wider context and the market in which products and services are delivered.
The process can be classified into 3 categories:
a. Knowledge about customers is accumulated to understand the
motivations of customers and address them in a personal way.
b. Knowledge to customers, includes knowledge about products, markets
and suppliers.
c. Knowledge of customers, ideas, thoughts, creativity or experience
consumption of certain products.
Knowledge is expanding the understanding of the marketing process that can
be measured by evaluating factors awareness, control factors, and application of
knowledge in new markets. They also realize that there is a consensus as to how the
knowledge of marketing should be defined and measured. CKM role is to capture and
organize this data allows to be shared and discussed throughout the organization.
14
3.2 Customer Knowledge Management Process Model
Here is the process of Customer Knowledge Management Model proposed by
Gebbert et al (2002)
Picture 2.2 Customer Knowledge Management Process Model (Gebbert et al,2002)
In the picture above models Customer Knowledge Management, Knowledge
Management Gibbert explains that has particularly the role as a service provider that
manages four aspects, is knowledge of content, competence, collaboration, and
composition. The process illustrates perspective to illustrate the process of knowledge
management can be applied to the sub-CRM in the process explained that the information
held by companies from marketing, sales and service will be collaborated into a product or
service that is then entered into the consumer process.
Four aspects of knowledge management in CKM models : content, competence,
collaboration, and composition. Aspects of knowledge management is to provide services
that support the process of CRM and direct impact on process performance. Aspects of the
content refers to content management and document management. Aspects of competence
refers to the good management implicit and explicit knowledge in an individual in the
performance of duty.
15
This is supported by technologies such as directory system expertise, management
skills, and the system of E-Learning. Aspects of collaboration refers to the creation and
dissemination of knowledge management among some individuals, while aspects of the
composition refers to the dissemination and use of knowledge management among a
number of individuals within an organization. Bueren et al (2004) further describes a
technology for collaboration to include e-mail, group information and technology tools for
composition, which focuses on search and navigation for explicit knowledge, can include
accretion of knowledge, personalization, taxonomy and knowledge management system
map. The four aspects of management CKM for EKM to include suppliers of knowledge
management and knowledge management where content partners, competency,
collaboration, and composition provide services that support the process in CRM, SRM,
and PRM.
3.3 Model Concept of Customer Knowledge Management
In the picture above models Customer Knowledge Management, Knowledge
Management Gibbert explains that have a role as a service provider that manages four
aspects of knowledge, is : content, competence, collaboration and composition. It
represents the perspective to illustrate the process of knowledge management can be
applied to the sub-CRM Customer Knowledge Management in achieving effective.
In the process explained that the information held by companies from marketing,
sales, and service will be collaborated into a product or service that is then entered into the
consumer process. In addition to the above model, according Mehdi Zanjani et al Shami
(2008) created a model that can assist organizations in understanding the concept of
Customer Knowledge Management.
16
Picture 2.3 Model Concept of Customer Knowledge Management
The model described above explains that the first layer categorize three types of
consumer knowledge, is knowledge to customers, knowledge of the customer and the
knowledge of the customer. The next layer of knowledge categories given by the
organization to consumers. Then on the last layer is a detailed section of each category are
given to consumer knowledge of the organization. Division contained in the above models
can help any organization that wants to implement a Customer Knowledge Management.
Customer Knowledge Management will provide advantages Customer Success, Innovation,
and organization learning. So it can been said that the Customer Knowledge Management
not pinpoint what is known by consumers, but may be more learning for the company to
distribute the knowledge possessed by consumers and use it to create a greater value in the
eyes of consumers.
One of the most important of a Customer Knowledge Management is the
Customer Knowledge is changing into Explicit Knowledge to Tacit Knowledge, and this
means that a knowledge previously only latent in the minds and thoughts of each individual
must be able to be modified in writing or explicit so that knowledge previously only
belongs to an individual may be shared with other people or in a broader scope, owned by
the organization in which he ruled, so that knowledge can be useful for many people and
organizations. There are many benefits of the application of knowledge management in a
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company or organization, there are at least three benefits that can be obtained from the
company, is Standarized Activity Process, System-Based Organizational Structure etc.
The first benefit of the application of Knowledge Management is a Standardized
Process Activity. From the example above incident, it appears that the lack of explict
Knowledge on-line activities of the company led to the company running sober without a
clear operational standards and impressed. In the era of increasingly competitive business
rivalry as it is today, is in fact not a wise thing when a company has entered into a climate
of intense competition, still rely on Tacit Knowledge Person by Person in the absence of a
clear written standards.
The next benefit of the application of Knowledge Management is a System-Based
Organizational Structure, with the presence of Explicit Knowledge on each line of activity
in the company, especially in activities that are considered as Core Activity, will make the
company into an organization based system or System-Based Structure Oragnizational.
Another benefit of the application of Knowledge Management is Easier and
Faster Business Development. With the existence of an Explicit Knowledge in the form of
operating system written and organized and of course run by the perpetrators activity with
discipline and commitment, of course, it will be easier in the stage of evaluating a
company's operating system. Regardless of the outcome when an operational activity has
been written and systemized well, will facilitate the evaluation of performance and
achievement of the company, both the evaluation system and the personnel of the system
actors.
There are many ways the application of Knowledge Management is a company
that is a focus of concern future is changing into Explicit Knowledge to Tacit Knowledge.
One of the easiest ways to change Tacit Knowledge becomes Explicit knoweledge is
"systemize the routine and Humanize the Exception". This method is considered easy
because it takes the actual business owners just careful observation of the activities of its
operational routine and then recorded the process flow as well as revamped in hardcopy.
Objective of Customer Knowledge Management is collaborating with customers
to Join Value creatio. This is in contrast with the objective of Knowledge Management and
Customer Relationship Management, where the two fields are not cooperating with
consumers. Knowledge Management only obtain retention of consumers, while the
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Customer Knowledge Management will provide advantages Customer Success, Innovation,
and Organizarion Learning. So it can be said that the Customer Knowledge Management is
not to know what was known by consumers, but may be more learning for the company to
distribute the knowledge possessed by consumers and use it to create a greater value in the
eyes of consumers.
3.4 Business Functions Customer Knowledge Management
CKM consists in terms of business functions:
a. Marketing.
b. Marketing research.
c. Marketing information system.
d. Customer profile.
e. Customer Analysis.
f. Customer relationship management.
Data and information gathered customer level, the level of market segments and the
overall level of customer profiles business, then processed and converted into customer
knowledge for organizational learning materials and change organizational behavior. CKM
effectiveness requires active customer involvement in decision-making companies.
Business-to-customer communication to distinguish and separate the business products and
services from competitors:
• Direct communication at the level of customer service.
• Public relations.
• Marketing Strategy.
- Communication-business customers to identify demographic, psychographic and
information related to deploying and competitors:
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• Data mining.
• Survey.
• Data warehousing.
- Customer-to customer communications to monitor gain insight and knowledge to
distinguish customers:
• Weblogs.
• Discussion forums.
• Observation.
- Challenges for CKM include:
• Translating and transferring knowledge into knowledge Tacit Explicit.
• Changes in organizational culture.
• Develop strategies KM.
Results CKM is a synergy of collaboration and increased value to customers by:
• Superior products and services.
• Facilitate the commitment and customer loyalty.
• Increase the innovation, development and growth of products and services.
3.5 Implementation success factor of Customer Knowledge Management :
1. Leadership
To be more organized a company should have a Chief Knowledge Officer
(CKO), which acts as a leader who manages the organization within the company.
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2. Culture
Standard culture within an enterprise is an effective productivity time, respect each
other, the same angle, and maintain a good two-way communication.
3. The structure, roles and responsibilities
CKM company that takes care of the organization should be composed of people
who are clearly in the structure of its staff, so that they can be responsible for their
jobdesk.
4. IT Infrastructure
IT standards used must have the content, appearance and standard technology used
by the public, so that will be effective for all parties can terlinat well even from nonIT though.
5. Measurement
Companies must take measurements or valuation value if appropriate application
of existing standards or not. Companies must find the best way in every procedure
that takes place in order to grow optimally.
3.6 Five Types of Customer Knowledge Management
a. Communities Of Creation
Another approach is generally used by every company in managing customer
knowledge management is to create a community of consumers of a product or brand.
b. Prosumerism
Prosumer is a term to explain that consumers can play a dual role, namely to
become producers and consumers. The Company may collect any information from
consumers about their desires. Dual role played by consumers to be one effective
approach for a company because of what they get or what the companies have
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obtained is derived from the desire of every consumer and the results do not have to
worry anymore, because the product is derived from consumers.
c. Mutual Innovation
Innovation on a product is created from the end user or consumer does not come
from internal sources for consumers who feel the product so that they have a quality
ideas according to their views. Companies can use this to make a new innovation in
the market by working with consumers in expressing their thoughts on a product and
accommodate all their desires.
d, Team-based co-Learning
In addition to a double play as noted above, consumers also can be part of a
team for the company in order to improve the quality and consumer satisfaction.
Companies can establish relationships with customers and opening up to all the
information and knowledge that they have, and together with them to share
knowledge to improve the performance of the company.
e. Joint Intellectual Property
The company created an idea among consumers that they are a part of the
company. This can be done by working closely with customers and regard themselves
as belonging to the company is the consumer.
3.7 General Constraints faced in implementing Knowledge Management Customer
1. Inability organizational infrastructure and processes to deal with the use of
knowledge of consumers. In managing customer knowledge, companies should look
into the company's internal, what they have to support.
2. The issue of trust and protection are not sufficiently emphasized
Between companies and consumers should create a sense of mutual
understanding, trust, and each must be kept secret and agreed to be applied
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consistently. Companies must look more closely at the background of every consumer
that when applying the Customer Knowledge Management each party awake feelings.
3. Application of Customer Knowledge Management with the wrong mindset
Wrong thinking occurs when companies have thought that the Customer
Knowledge Management is a tool to increase customer knowledge. This will be a
barrier for the purpose of Customer Knowledge Management is to create value for
consumers in the long run that will be beneficial to the development of the company's
business. In managing the knowledge of consumers, companies also need to maintain
the values and knowledge of their customers as partners rather than as a source of
knowledge.
4. Dependence of the knowledge of the consumer
Companies should not depend on consumer knowledge alone but must perform
data processing and further research on the knowledge possessed by consumers.
5. Diversity ignored customers
Often companies generalize perceptions and thoughts of the customers so that
they only apply one or two Customer Knowledge Management approach for its
customers and the result is what has been applied is not effective because people
basically have thoughts and desires are different. Therefore, companies should not
only look at the customer a general outline but should be grouped into categories that
represent each of their thinking.
3.8 Competence of Customer Knowledge Management
Competence customer knowledge management can be divided into four sections:
1.
Customer Information Process
Customer information is a process of organizational processes that generate
customer knowledge. Customer information process leads to a set of behavioral activity
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of the customer to gain knowledge about customers who may include the need for a
product or service.
2. Marketing-IT Interface
Marketing-IT interfaces lead to the marketing process and communicate
information technology functions.
3. Senior Management Involvement
Senior management refers to the top management that supports the integration of
customer knowledge within the company.
4. Employee & Evaluation System
Employee and evaluation system refers to the behavior of employees in line with
the objectives of the company to produce and integrate customer knowledge in the
company's marketing strategy.
Picture 2.4 Competence of Customer Knowledge Management
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CHAPTER 4
CONCLUSION and RECOMMENDATIONS
4.1 Conclusions
After analyzing this paper, the authors conclude some conclusions are as follows:
• CKM as a strong competitive potential, which contribute to the increased success
of the company and their customers.
• CKM create new knowledge sharing platform and processes between companies
and their customers.
• Sustainable strategy by which companies allow their customers to move from
passive information sources and recipients of products and services to knowledge.
4.2 Suggestions
After analyzing this paper, the authors give some suggestion as follows:
• The company has more knowledge about the CKM so as to reduce
misunderstandings.
• Companies can apply from five styles CKM.
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Journals About Customer Knowledge Management
Definition of CKM according to Zhang (2011) in the journal entitled "Customer
Knowledge Management and The Strategies of Social Software" is a process to capture,
share, apply the data, information, and knowledge associated with the customer to benefit
the company.
According Paquette (2006) quoted by God, Shahin, Tabanifar (2012) in the journal
entitled "Analysis of Relationship between Knowledge Management and Customer
Relationship Management with Customer Knowledge Management" Customer Knowledge
is knowledge that is in the middle of the customer, not the knowledge of the customer
itself, but rather a process to manage, identification, acquisition, and use of customer
knowledge collectively referred to as Customer Knowledge Management.
According Sofianti, Suryadi, Govindaraju and Prihartono (2009) in the journal titled
"Transformation of Customer Knowledge Management Through Social CRM "explains
that the CKM described as an ongoing process for generating, disseminating and using
customer knowledge within the company. CKM is understood as a holistic business model
that is the result of the integration of some of the concepts, techniques, and methodologies
related to each other and rooted in the people, processes, and technology, aimed at creating
loyal and profitable customer (Al-Shammari, 2009: 19).
According to Gilbert (2003) and Bosch (2000) quoted by Nejatian, Sentosa and Piaralal
(2011) in the journal entitled "The Influence of Customer Knowledge on CRM
Performance of Malaysian ICT Companies: A Structural Equation Modeling Approach"
says CK is a dynamic combination of customer, value and insight needed information,
created, and absorbed during the process of the transaction and the exchange between the
customer and the company.
According to Akhavan (2008), quoted by Outila (2011) in the journal entitled "Customer
Knowledge Utilization In Retail Decision-Making" CKM benefit for the company is
finding opportunities of competition and create economic value of the company's
shareholders and customers.
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According Ogunde et al. (2010) in the journal entitled "Towards an Agent-Based
Customer Knowledge Management System (ABCKMS) in E-Commerce Organizations",
CKM used to support knowledge between companies and customers to make the right
decision.
Bibliography
Davenport, T. a. (1998). Working Knowledge : How Organization Manage What They Know. USA: Harvard
Business School.
Gibbert M, L. M. (2002). Five Style of Customer Knowledge Management and How Smart Companies Use
Them To Create Value. European Management Journal, 459-469.
Laudon, K. C. (2002). Management Information System. Managing the Digital Firm7. New Jersey:
Prentice-Hall.
27
Malhotra, Y. (1998). Knowledge Management Organization & Knowledge Workers : A View From the
Front Line.
Rowley, J. (2002). Eight question for CKM in e-business. Journal of Knowledge Management, 500-511.
Tunggal, A. W. (2000). Konsep Dasar Customer Relationship Management. Jakarta: Heravindo.
Wilde, S. (2011). Customer Knowledge Management Improvement Customer Relationship Through
Knowledge Aplication. Spinger.
APPENDICES
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Picture 2.1 Determinants of Customer Delivered Value
Picture 2.2 Customer Knowledge Management Process Model
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Picture 2.3 Model Concept of Customer Knowledge Management
Picture 2.4 Competence of Customer Knowledge Management
Classification
Knowledge
Tacit
Explicit
Implicit
of Easily Communicated ?
No
Yes
Yes
Documented ?
No
Yes
No
Table 3.1 Characteristic of Knowledge in the
enterprise
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