Academic journal article Journal of Theoretical and Applied Electronic Commerce Research

Customer Knowledge Management Application in Gaining Organization's Competitive Advantage in Electronic Commerce

Academic journal article Journal of Theoretical and Applied Electronic Commerce Research

Customer Knowledge Management Application in Gaining Organization's Competitive Advantage in Electronic Commerce

Article excerpt

1 Introduction

Considering the complicated and dynamic conditions of today's world, going through the age of communication and information that has changed the world to a tiny village, wondrous progress of knowledge and diverse technologies and accordingly raising the living levels and humans' expectations and also fast paced cultural changes in the traditional societies, it can be concluded that no longer organizations that are now an aspect of society can be run regardless the dynamic conditions of internal and external environments [41].

Entering the new millennium, capital, raw materials and land which were considered to be critical for the formation and growth of the organization in the past, have lost their former importance. Countries and organizations need to survive in conditions that are associated with rapid and significant changes which are based on knowledge. Organizations that are grappling with the new challenges of the science era will understand that knowledge is the most strategic source of organization and the base of competition and survival in competitive and non-competitive environments. Because of this reason, they are considered a necessity for the management of these strategic resources [1].

Knowledge has become a strategic resource as the basis of competitive advantage in an organization [5].

In this new context, two important factors are determining the survival and future success of the organization are: a) e-commerce b) the acquisition of knowledge and information from customers and consumers [16], [43].

The most important type of knowledge would appear to be customer knowledge. The growing importance of customer knowledge is emphasized by numerous publications and is also confirmed by the empirical research. According to a survey, customer knowledge was quoted as the most important type of knowledge (97%) to assist organizations act effectively. This is followed by knowledge about competencies and capabilities (86%). companies need a wide variety of knowledge about customers, such as:

* Who are their customers?

* How can they use knowledge to retain and support customers?

* How can knowledge help companies acquire new customers?

* How can companies use customer knowledge to continuously improve products and services?

* How can companies use customer knowledge to create new products and services?

* How can companies use customer knowledge to understand markets better?

To reach these levels of knowledge, most organizations have focused on collecting massive amounts of data about customers [5].

The success of e-commerce is substantially dependent on knowledge management [4].

In this regard, managing the use of consumers' knowledge presents the specific tools and techniques of knowledge management used in order to support the exchange of knowledge between a business and its customers, and thereby, allowing the company to make appropriate business and strategic decisions [21], [36].

Customer knowledge management (CKM) leads to many improvements in the delivery of new products and services, improving customer service, customer respect, providing customer satisfaction, discovering serious needs of the customer, better response and respect to the costumers and for the organization to increase profit and competitive advantage [32].

2 Literature Review

Research literature includes topics on customer knowledge management, competitive advantage and e-commerce which will be explained in the rest of the article.

2.1 Customer Knowledge Management (CKM)

In order to maintain a good relationship with customers, it is essential for companies to communicate with their customers in a fully satisfactory way and thereby, through providing appropriate proposals continually meet the changing needs of the customers. This requires a conscious management of our customer's knowledge [7].

In order to have good communication with their customers, companies that focus on their customers, especially dotcoms, have to establish a good relationship with customers through a satisfying method and continuously meet the changing needs of their customers. …

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