Contents

Abstract ......................................................................................................................................................... 2
Introduction .................................................................................................................................................. 2
Knowledge as a Key Resource for Creating Innovation ................................................................................ 3
Information Management as Issue of Making Innovation ........................................................................... 5
Role of Information and Knowledge Management in Developing the Innovation Capability of Enterprise 7
Importance of Information Management for Innovation Capability of Enterprise .................................... 11
Impact of Knowledge Management on Enterprise's Innovativeness ......................................................... 12
Conclusions ................................................................................................................................................. 13
References .................................................................................................................................................. 16

Abstract
Within the modern business world, characterized by dynamic and continuous changes, the competency
of enterprises depends on the speed by that they introduce new, superior products/services and initiate
varied business processes as compared with rivals within the market. The competency of enterprises is
set by their flexibility and innovation ability. Knowledge, as a resource, and information management,
because the questionable meta-resource, are the factors that confirm innovation capability of an
enterprise. The aim of this paper is to imply the importance of developing and implementing an efficient
system of data management within the Up to date enterprises for innovation skills. This is often as a
result of data management affects higher utilization of enterprises' resources for making innovations
and increasing their absorbent capability, i.e. increasing the power to use external data within the
operation of raising the amount of antecedently acquired information.
Keywords: information, information management, innovativeness, competency, enterprise, Knowledge,
KMS, IMS

Introduction
Innovations are key drivers of growth and development of modern enterprises. They assist organizations
develop in accordance with the changes and necessities of their environment in order to extend
business potency and maintain business activities within the market arena. So as to supply resources
which will be relying on competitive advantages, enterprises have to be compelled to formulate and
implement new business methods that are tailored to environment necessities and techniques of
innovation products and processes. Innovation involves the utilization of latest information (internally
created and/or acquired externally) so as to boost the performance of product, services, processes,
system of labor, and making opportunities for growth. In different words, innovation could be a method
centered on making new knowledge for the rising of business solutions (Herkema S., 2003). The method
within which information is acquired, adopted, and shared with the aim to make new knowledge (which
improves products/services) is taken into account for applying the innovation method. The sources of
this information are new technologies, the results of experiments, the outputs of inventive analysis and
knowledge from competitors (Dess G., Lumpkin G. T., Eisner A. B., 2007).

Knowledge as a Key Resource for Creating Innovation

Within the field of information management and intellectual capital management we are able to notice
completely different classifications of information. Its largely viewed as specific and tacit information
(Nermien A.A., 2003) and as market knowledge and technological information (McKelvie A., 2007).
Explicit information is articulated in formal and systematic language. It will simply be transferred, and
shared to different entities within the form of information, specification, manuals, etc. It is often found
in plans, projects, patents and databases in an enterprise. Its declared that it's formal and documented.
It will simply be downloaded and applied, however it's additionally been incorporated into products,
technical specifications, drawings or designs. An enterprise, which may quickly transfer specific
information through the organization, creates competitive advantage over the rivals that have a slower
transfer.
In the context of enterprise information or corporation information, specific information is viewed as
data that's collected within the easiest method and transmitted by information technology (IT). Because
explicit information is coded, i.e. recorded by symbols and numbers, the management of this
information is usually accomplished by using IT. Access to information through data systems accelerates
the flow of knowledge and, in this approach, it will increase operation potency. Therefore, the first
interest of an enterprise that is flourishing within the market is to take a position within the
development of information technologies and systems. Effective and high-quality IT infrastructure will
decrease the chance of unwanted "losing" of data from an enterprise. On the opposite hand, if you
would like to support cooperation methods with the assistance of IT, explicit information will simply
cross "borders" of an enterprise. By imitating, explicit information will quickly be accessible to
competitors, and so, it's necessary to guard it within the system.
Tacit information is personal information (Slavkovi, 2008). It includes information of workers and
managers in an enterprise, i.e. their experiences, intuitions, ideas, visions, skills, abilities, values, etc.
tacit information is an inherent part of characteristic of every member of organization and isn't recorded
anyplace within the enterprise. In fact, it's not been formal and documented. Therefore, it's terribly
tough to articulate, specify and transfer it to others. A way larger issue for organizations is to manage
the tacit information in reference to explicit information and since of that, it's usually unused. Tacit
information is transmitted by communication and interaction among people or structure teams. For its
transfer to others, the temperament of the one who has it's necessary. Tacit information that a personal
antecedently not heritable and improved by apply and education "leaves" a business system once that
person goes aloof from an enterprise.
This may have essential consequences on the functioning of an enterprise. The answer to the present
downside is, to some extent, within the codification of tacit information. In different words, tacit
information becomes explicit information by activities of codifying. Tacit information that a personal
takes from an enterprise may be protected by power (trade secret) or by a contract between the worker
and also the leader. This contract prohibits operating in competitive corporations, establishing business
within the same trade and also the like. As a result of information of workers is that the results of their
3

expertise and applies in an enterprise, it's not simply collected, shared and employed by the enterprise.
Market information implies information (information) regarding desires and demands of shoppers, their
desires and their business processes. The additional you recognize regarding customers and markets,
the larger the opportunities for invention and innovation. Additionally, active observation of market
signals is incredibly necessary as a result of it provides opportunities for making innovation. Market
information is helpful because: 1) it provides info regarding the issues and needs of customers; 2) it
facilitates estimation of the worth of recent product/services and of different changes within the
market; and 3) it facilitates and improves future communication among an enterprise and its patrons
(customers).
Technological information refers to information of producing or production methodology and tools. It
includes the education level of workers, their work and technological expertise. It additionally includes
the adopted technological information which may be not heritable through analysis and development
(Usually known as research and development or R&D), engineering, implementation of scientific comes
and similar activities. This sort of data is harder to repeat or notice in competitive corporations. This can
be as a result of technological information is more durable to transfer; and it's developed by sure
investments instead of on the premise of assortment of typically accessible information. Possession of
technological information is vital for distinguishing opportunities and making innovation for many
reasons: a) increasing capabilities of an enterprise to assess dependability of recent technologies and to
assess the opportunities by experience in making an best product range; experience in realizing the
assembly method and; b) achieving additional competitive i.e. lower costs of ultimate merchandise or
services; c) understanding the competitors' actions quicker and higher, and g) making inventions that
truly represent new opportunities and possibilities for fulfillment within the market.
Development and application of recent information is that the basis for innovation, that confirms the
sturdy link between information and innovation. Enterprises might possess information, as an intangible
resource, and transfer it from one organization unit to a different, or maybe to different enterprises.
Additionally, enterprises will mix information resources and, therein approach, add new information to
the present information. Therefore, information is taken into account a transferable and supplemental
resource that's essential for making innovations.
In markets that are ever-changing, information as a resource has the added price or profit, as a result of
in such conditions it's the next level of general relevance compared to different resources. Frequent
changes within the market give several opportunities for innovation. In dynamic markets, increased
information is related to superior business performance. However, enterprises that operate in these
markets, address the matter of fast outdating of data "stock". Namely, structure information may be
necessary for a particular amount and below certain circumstances of competitive within the market,
and at that time, the enterprise essentially acquires new information. This implies that the enterprise
perpetually needs to produce and acquire info regarding market and technology, if it desires to form the
preconditions for creation and implementation of innovations. In dynamic markets, created and realized
innovations become noncurrent quicker. These innovations are current for a short-run amount solely, as
a result of life cycles of merchandise and technologies are shorter, and there's larger uncertainty
relating to their property in conditions of severe competition.
4

Information Management as Issue of Making Innovation

Innovation builds on the activities of data sharing. Here the stress is on tacit information. Dialogue and
frequent interaction between people or teams in organization kind the premise for brand spanking new
combination of data and creation of innovations. Because of this interaction, opinions are shared and
also the atmosphere of cooperation is made, that is incredibly helpful for transfer of tacit information.
Deed information from customers, provider and strategic partners additionally represents a valuable
supply for innovation programs and methods. Cooperation among organizations plays a very important
role in sharing tacit information that completely affects innovation capability (Plessis M., 2007).
Because tacit information is incredibly necessary for innovation, it's additionally within the focus of data
management. Specifically, routine work processes typically contain tacit information and that they are
typically a challenge for managers of information resources and knowledge management system in
enterprise. Tacit information is current if, for instance, creative thinking techniques (brainstorming, for
instance) are institutionalized within the enterprise, i.e. if ideas are shared in operating conferences
(working groups). Also, the common apply of assorted organization units inside the enterprise will
facilitate in sharing tacit information among them. However, the matter is that tacit information is
usually ever-changing and growing with the adopted new skills and skill of individual, thus it's tough to
capture and record it.
Also this type of data encompasses a nice price if properly used, because, as a rule, it adds price to the
enterprise. Therefore, key people (A.K.A experts) within the enterprise are a very important issue for its
competitive benefits. During this sense, the power of an enterprise to extend tacit information and to
form preconditions for sharing among workers, inside a structure unit, and among structure units, is
that the main task of an information management system.
A special challenge for management is balanced management of explicit and tacit information. This can
be in terms of the necessity to form larger structure information, by codifying tacit information into
explicit information (Zack, H. M., 1999) on the one hand, and feat information in "the heads of
employees", on the opposite. Additionally, the goal of data management (with the assistance of IT and
systems) is to stop the loss of skills and core competences of enterprise, as a result of they're
additionally essential in representing information. However, once the IT infrastructure is simply put in,
there's a danger that social interaction between structure units of the enterprise (which share the
knowledge) is left to a particular scenario and individual preference. Information management system
that's supported by IT, along with acceptable management of human resources and different intellectual
resources helps solve these issues and supports the creation of social networks within the enterprise, in
addition as outside the enterprise with external neutral in business surroundings. Masterful and
competent workers are typically additional willing to contribute with only 1 a part of their information
which will be statute which they're able to transfer. If the worker isn't inspired, motivated, or maybe
rewarded to permit access to his information, the enterprise cannot use it and incorporate it into future
structure mental object. During this context, information management as a system in an enterprise
becomes additional necessary. information management is taken into account as a valuable tool and its
5

adequate implementation may be within the perform of up the processes of making and sharing
information that are, in fact, a key for innovation (Swan J., Newell S., Scarborough H., Hislop D., 1999).
In enterprises that produce information, every worker is accountable for making information, and then
his personal information is remodeled into structure information, that then becomes helpful for the
organization. Its essential that non-public information becomes accessible to others, which
availableness perpetually exists in the slightest degree levels within the organization. The enterprise or
its structure phase isn't solely the user, however additionally the information creator. Information
creation takes place at 3 levels: individual, group, and structure. Making information includes the power
of an enterprise to "make" new information and expand it across varied levels within the organization.
This new information is materialized in new merchandise, services and business processes. The creation
of structure information is vital for a spread of innovations in enterprises within the future. However,
the uncertainty within the business surroundings needs making knowledge in enterprises and its
external acquisition. A modern, versatile enterprise needs to exploit information that's created
outwardly from suppliers, costumers, competitors and external consultants, however conjointly with
success produce knowledge and information, whereas the members of organization are carriers of
innovation. The method of structure creation of information ought to be unendingly improved. During
this regard, it's essential that the enterprise has the power to acknowledge the specified kind and
varieties of information that ought to be developed within the future so as to be winningly and
competitive within the market.
Knowledge sharing among people in an enterprise could be a vital element of the training method and
making a basis for realizing innovation. Up to date communication technologies (the Internet) leads to
the supposed information networking. Its a method of sharing and distribution of data among
members, groups and teams, wherever intensive communication not only expands the current
information, but it will also create new ideas. Information may be improved by organized
communication and connection along people with completely different competences and skill interests.
Their common engagement on a project will generate several high-quality ideas that otherwise wouldn't
be reached. During this method, workers whom are able to modify and settle for new insights and
experiences are essential. Accenting the development of capabilities of members of organization for
information sharing is important for its success in realizing operational activities and achieving strategic
goals.
Enterprises that achieve developing the power of information and knowledge sharing, as a basic rule,
have developed an information and knowledge management system that contributes to achieving their
business goals. Sharing information is the most difficult phase of information management, as a result of
the information that people in organization have is commonly used as a mechanism of dominance in
competition for work position, larger compensations (wages and bonuses), higher ranks and great
power within the organization. Therefore, the development of information and knowledge sharing
capabilities among people, and among organizational units (departments and divisions), could be a
challenge for the management of an enterprise. So as to deal with this challenge the information of a
specific person cannot be neglected or considered less significant than others. Specifically, the
management should develop a mechanism of motivation and indicate a transparent business reason for
6

information sharing. Absorption and sharing of knowledge are a lot more successful if the members of
the organization (teams) are close together and respect and perceive one another. Some theoretical
approaches associated with the implementation of methods for information management, principally
target the implementation of informational technologies. Information sharing activities cannot only be
improved by IT. Information management is primarily a corporation tool for issue determination which
may increase the success of an organization in mapping, analyzing, exploiting and examining
information. Its thus necessary to target each individual and organization problems with information
management.
In the aim of explaining and analyzing the impact of information and knowledge management on
innovation activity of an enterprise, there's a desire for a more in-depth check up on the instruments for
achieving innovation processes associated with transformation and combination of information as its
key input. Within this regard, it's thought of that there's a positive influence of information
management on productive usage of resources (physical, financial, human and different intellectual
resources) for the creating and implementing innovations in an enterprise. More clearly, information
management ought to improve the utilization of intangible resources that may additionally contribute to
a much better use of tangible (or material) resources so as to form innovation in an enterprise.
Information management is thus treated as a selected "meta-resource" of the enterprise that permits
management to make potential for increasing effectiveness and efficiency of using different, accessible
resources within the enterprise.
Accumulation of various resources doesn't contribute only to promote success, but it will also affect to
their effective and efficient usage. The resources are basis for building competitive benefits only if used
across business processes. Therefore, information management may be treated as a selected method
for rising opportunities and capabilities of enterprises. Information management as a "meta-resource"
ought to have an effect on improving the power of analysis and exploitation of external information. The
absorption of this information is within the task of accelerating the amount of the present knowledge in
organization. Additionally, information management is within the task of making new resources for
innovation implementation and establishing cooperation among people and corporation (or business)
units for their realization. Knowledge management is, therefore, contained within the internal system of
making and applying innovations in enterprise (Bergeron B., 2003). As a result of that, it's relevant to
emphasize the roles of information management in developing innovation capability of enterprise.

Role of Information and Knowledge Management in Developing the

Innovation Capability of Enterprise
Innovation seldom includes information from one area only. It primarily involves the creation of latest
opportunities through combining completely different sets or information areas. Therefore, innovation
is claimed to be a method of considering and elaborating information and ideas within the aim of
producing successful business processes, products, services and activities. Combined information may
be incorporated within the expertise of different members of the organization or it's going to be a
7

typical result of technology, market, and competition analysis. additionally, as already highlighted
before, information could also be in an explicit type or encoded, and in this approach, others will have
access to it, enhance it, transfer it, use it with others, etc. it's going to even be in the type of tacit
information, so that it's acknowledged, however it's not recorded and explicit in symbols, formulas,
words or otherwise. However, the method of connecting these completely different sets of data into
prosperous new products, business processes or business activities, happens fairly often below the
effect of unpredictable facts and also with a risky outcome. In fact, generally one cannot assume what
the results of combining information are going to be, and the way one will precisely get to the desired
result. In such state, the function of information management is to cut back uncertainty (Tidd J., Bessant
J., 2005, p. 552), concerning the ultimate effect.
The most vital roles that information management plays in improving innovation capability of an
enterprise are: a) Codifying and sharing tacit information; b) deed and sharing explicit knowledge; c)
enabling cooperation inside and off the enterprise; d) integrating of information; e) Providing
accessibility of knowledge, and f) making organizational culture based on information and innovation.
The first vital role of information management in building innovation capability is in codification and
sharing of tacit knowledge. tacit information is essential for the innovation ability of enterprise, cause it
involves specific practices that are tough to copy from competitors. The complexity of enterprise (as a
business and social system) and a novel past of an enterprise create this information tough to repeat.
Sharing tacit information as an input for innovations is very vital within the development of areas of
business activities, i.e. products markets or industries in which explicit information isn't dominant, one
of the best examples of that is biotechnology. Innovators involved in this field mix explicit information
with complementary resources, like multi-functional groups and capability of learning from practice. In
situations wherever lots of tacit information is used in innovation method, cooperation among groups is
important. These interactions generate skills and routines that make novelty, inventions and
innovations. However, information in these "recipes" isn't continuously codified, but also it usually stays
inside the talents and competences of team members. Information management helps in availableness
of tacit information, and then, in its codification.
Knowledge that's not in explicit kind is tough to spread and apply within the innovation method. Initially,
organizations don't seem to be conscious of the amount of tacit information, that is offered to them and
that they don't have developed mechanisms to access it.
Knowledge management will lead the tacit information to be accessible, through understanding of that
tacit information is offered, for example, through using the knowledge domain that contains the
experience of workers. Also, it helps codification and conversion of tacit information into explicit
information that is important for future innovation processes. Information management will play a key
role in facilitating cooperation, which, in turn, will help in sharing of tacit information.
Another key role of information management in developing innovation skills and capability of enterprise
is in assortment and sharing of explicit knowledge. Though explicit information doesn't play a dominant
role in innovation method as tacit information will, because it's easier to access, it is, however, a very
8

important part of innovation. In technologically advanced enterprises, explicit information is dominant

within the method of analysis and development, wherever it combines with existing tacit information.
These processes need the power of changing tacit information into its explicit type.
Innovation could be a method that mixes existing information in new ways. Information management
will play a very important role in facilitating access of explicit information, which can be used for recombination in new ideas (for example, clearly structuring the information base). Information
management, in fact, will make sure that the specific information (that is applied as input in innovation
process) is collected internally and outwardly. Finally, information management ensures effective use of
data, because it determines defects and gaps within the base of explicit information which will
negatively have an effect on the innovation method in an enterprise.
The third crucial role of information management is identified in providing cooperation inside and
outside the enterprise. Business cooperation may be seen because the ability of suppliers, employees
and customers to share information inside and across organizational boundaries. This observation
contributes to the accomplishment of a typical business goal that may increase advantages for every
included party. Each internal and external co-operation among organizations features a notably
necessary role in transfer of tacit information and creation of knowhow in enterprises. The stronger
relationship among the cooperating partners, the larger the transfer of tacit information is going to be.
Gathering tacit information from partners will decrease risks and prices of innovation method. In this
approach, cycle of innovation development may be shortened and, also within this approach, ensuring
the effectiveness of the innovation process.
In business, formal relationships among people subside to informal relationships and building trust, so
effective flows of information are created. Innovators have to be compelled to notice the mandatory
knowledge and information from professionals through informal networks, because valuable
information is usually accessible only in implicit type, and cooperation is an efficient method to reach
the desired information. Expertise from business cooperation completely affects the enterprise's ability
to acknowledge and perceive the mechanisms of collection, interpretation and diffusion of information
that will increase the potency of its transfer.
Knowledge management will facilitate the cooperation through technological platforms and tools.
During this approach, cooperation permits sharing information inside communities, like net forums.
Additionally, information management uses different mechanisms for cooperation, like competent
teams. Tacit information is without doubt a very important part within the innovation method.
Therefore, information management plays a key role in guaranteeing tacit information sharing through
business co-operation; in addition as coding tacit information into its explicit kind and enabling recycle
of data in several contexts and functions. Finally, information management provides processes for
collection, sharing and exploiting information, that are gained from arrangement of business
cooperation.
Another necessary role of information management systems is integration of information and
knowledge in an enterprise that permits its future sharing and exploiting. The mixing of information
9

implies that knowledge will be shared, developed, and created obtainable at the certain time and at
completely different levels of organizational structure of enterprise (Chen J., Zhaohui Z., Xie H. Y., 2004).
Without any effective information management to support the integration of information, the
organization runs the risks of under-using information as a resource of innovation. The potential
advantages of information cannot be achieved without integration of data, because information then
very often subjects to the insight and adequate understanding.
The next role of information management is mirrored in providing accessibility of data that's needed
within the innovation method, i.e. information that's necessary for innovation teams (Cavusgil S. T.,
Calantone R. J. Zhao Y., 2003). This can be vital for reducing the danger and value of innovation.
Organizations use activities and information management tools, like scanning the business surroundings,
benchmarking, internal network, and databases across enterprise, so as to gain information and create it
accessible (Adams G. L. Lamont B. T., 2003).
Finally, the last known role of information management that's relevant for the event of innovation
capability is making the innovative culture based on knowledge. In spite of however expeditiously
information management system is applied, organizations would like a culture that promotes creative
thinking, in order to truly reach generating ideas that stimulate innovation. A twin set of barriers of
organizational culture might typically stop or hinder creative thinking. The primary barrier is risk
aversion, as a result of constant worry of failure results in a high level of caution. Different cultural
barriers in a corporation are prejudices of workers regarding novelties that require be introducing or
realizing. These prejudices are typically associated with ideas based on existing abilities. In cultures
wherever innovation and creative thinking are appreciated, using different people's ideas or their
previous work may be considered unfair and unprincipled even. Reuse of information shouldn't be
supported only based on the values of organizational culture in an enterprise, but additionally by
adequate procedures and practices. Reprocess of data encompasses a terribly vital impact on
innovation.
Knowledge management on the premise of implementation of values of innovation culture will
encourage producing and sharing information, in addition as varied sorts of cooperation. Information
management, also, creates a culture within which the importance and values of data and its exploitation
are known and transferred across organization. This kind of culture encourages the methods, processes
and programs based on information, like innovation.
Building up an innovative culture contributes to the innovation management and continuous increase of
variety of innovations and contributes to their prosperous realization. Innovative culture may be
outlined as "motivational environment that stimulates innovative and creative thinking" (Krsti B., 2009,
p. 128). It creates a way that each concept brings innovative change is very valuable. The wealth of an
enterprise includes its ideas that are reworked into innovations that build up its competitive advantage.

10

Importance of Information Management for Innovation Capability of

Enterprise
Knowledge management is incredibly necessary for the innovation capability of enterprise that could be
a precondition for its strengthening and endurance of competitors' pressures. Increasing the speed of
realizing innovations, enterprises become a lot more efficient. Therefore, strategic management and
notably operational management in an enterprise are progressively using tools and techniques of
information and knowledge management. It this sense, the importance of information management for
the innovation capability of enterprise (Plessis M., 2007) is mentioned in the additional elaboration.
First, information management promotes and encourages knowledge-driven culture in which
innovations are aroused. Information management emphasizes the importance of innovative
organizational culture, wherever innovation, creative thinking and learning from mistakes and
appreciated. Information management helps producing tools, platforms and processes for making,
sharing and transferring of tacit information in organization. Tacit information is incredibly necessary for
the development of innovation capability. Information management can facilitate realizing "stock" of
tacit information in a corporation.
Knowledge management conjointly helps encryption of tacit information into explicit information.
Examples of platforms for codification are information regarding discussions among organization
members and their cooperation. Distinguishing and sharing tacit information could be a method that
codifies tacit into explicit information (for instance, morning online meetings), wherever information
and data could also be organized, exploited and reused. This considerably adds price to the organization,
because it identifies which information is available, as well as potentialities for its reuse.
Knowledge management improves innovation capability of enterprise by empowering cooperation
among varied organizational units inside organization, and cooperation outside the organization,
through an internet cooperation forum and organizational tool and platforms, like intranets and
extranets. These cooperation forums are vital, cause they permit the acquisition and codification of
information that's used as input for innovation, but additionally information, that could be a result of a
selected innovation method. Information management permits access to information and identifies
potential collaborators and participants in activities of data sharing and innovation method.
Knowledge management improves the "absorptive capacity" of enterprise that completely affects its
innovation capability. Namely, information management improves the capabilities of enterprise that are
associated with absorptive, transforming and exploiting externally gained information. This information
may be used as a resource for producing innovations. Information management provides accessibility
and understanding of tacit and explicit information that's relevant for developing and improving the
innovation capability of an enterprise. An information management system attains this by organizing
and documented information, and using talent and tools for locating correct information. Information
management permits organizing and reusing knowledge in an exceedingly structured approach.
Information management provides a singular structure of data base. Additionally, it provides tools for
analysis, in order to enthusiast people to explore information necessary for innovations. Besides,
11

information management will create tacit information a lot more accessible through easier identification
of various areas of experiences of key people in organization.
Knowledge management helps making competencies needed for creation and implementation of
innovation. By accessible information flows, members of organization are ready to increase their level of
information and skills, and it will improve quality of innovations. These knowledge flows through
organizational units give additional information for all workers compared to the amount of data that is
offered to them in everyday in operational activities. In that approach, workers have a larger volume of
data concerning everyday operations and are able to be a lot more innovative. Information
management through the culture of knowledge sharing, affects strengthening competences and skills
for their innovation activities.

Impact of Knowledge Management on Enterprise's Innovativeness

One of the central problems in this area of study is the impact of information management on
enterprise's innovativeness and also the results of innovation activity. The final assumption is that
information management will increase performances of information resources and so, the results of
innovation output of enterprise. Within the context of resource based theory, the direct impact of
information management (as resource) on the success of innovation activity of enterprise is
emphasized. Recent empirical researches treat information management as a selected resource that
makes a potential for additional efficient and effective usage of existing internal information resources,
as well as external information resources. Information management is settled as a resource that will
directly increase the creativity and innovativeness of an enterprise that in this approach causes no
uniformity and heterogeneity among them. This assumption is explicit; winning successful of innovation
of enterprise depends on its innovation resources, cooperation in innovation method and information
management. Organizations that manage information with success and have a developed system of
information sharing will expect from their workers generating of latest innovative prepositions for
determination issues and development of a lot more innovative business processes.
Knowledge management will give additional productive brainstorming and higher usage of new ideas,
and thereby improve innovativeness of enterprise. Most definitions of information management
emphasize its aim to enhance innovative performance of enterprise and influence on increase of
competitive ability. Innovation truly arises as a result of activities of organizational information sharing,
and particularly of tacit information in an enterprise.
Continuous interaction and dialog among completely different people and teams in an enterprise forms
the premise for information sharing and creating innovations. in this approach, the atmosphere of
cooperation is made, that is beneficial for information transfer. During this sense, information
management contains a great importance as a management tool, that promotes creation and sharing of
recent information. These processes are essential for innovativeness, and innovations in producing value
and increasing competitively amongst others. The impact of effective and efficient information
12

management on improving performance of data usage is positive, in addition as enterprises' success in

achieving innovativeness (Liao C., Chuang S. H., 2006). Information management system makes
enterprise prepared for developing innovation capability, making and implementing innovations.
Besides, by applying a production operates model, a positive impact of information management in
generating innovations products/processes in producing enterprise is showed (Huergo E., 2006).
Bearing in mind the results of analysis on the impact of information management on innovation success,
it may be expressed that information management directly will increase innovation activity of
enterprise. Namely, the goal of this analysis refers to distinguishing and analyzing the impact of
information management on innovation success in enterprises. The main focus is on examining the
impact of information management techniques of success of enterprises that have innovated processes
and/or products. Enterprises that have enforced effective system of information management have had
success on top of average in innovating products/processes compared to enterprises that haven't
enforced this technique.

Conclusions
Knowledge management, as a method by that enterprises generate value, becomes an essential for
modern business within the new economy. Information management is viewed within the light of
essential problems with adaptation of enterprise and its survival within the conditions of constant
changes in business atmosphere. In this context, it's necessary to seek out unity of knowledge
technologies, on the one hand, and creative and innovative potential of human resources, on the
opposite. Achieving sustainable competitive advantage depends totally on the power of innovating,
developing and implementing freshly gathered information.
Knowledge and innovation have essential importance as driving forces for semi-permanent success of an
enterprise. During this regard, the change is obvious within the insight of information management
within the function of developing creative thinking and innovativeness, and consequently, the
development of enterprise, as a whole. In different words, by making, developing and also the
incorporating valuable information into new, innovated product of an enterprise, the advantage of
information management is distinguished and competitive advantage is made.
The aim of information management is effective and efficient use of data as very important resource
within the era of knowledge economy. The challenge of management of contemporary enterprises is,
therefore, measuring, improving, defining, evaluating and effective information management.
Information of an enterprise could be a basis for building innovative capabilities, potency of innovation
method and commercialization of the innovation. Growth and development of enterprise are
determined by a realization rate of innovation as a result of shortening of product and technology life
cycle.
Knowledge management in enterprise provides a more robust use of data and reduces the complexity of
innovation method. Here, above all, tacit information in enterprise is emphasized, in addition as explicit
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(market and technological) information used in innovation method. higher usage of data resources
influences additional productive usage of different tangible and intangible resources in enterprise, that
are at an equivalent time exploited for making varied innovations. During this sense, information
management could be a specific resource of enterprise.
Willingness of managers and workers whom participate in making, sharing and transferring information
in enterprise depends totally on their motivation. Therefore, the system of motivating in an enterprise is
each one of the key components of data management system in a certain enterprise.
In the aim of providing the required information for making innovation, enterprises ought to improve
their ability of collection and using external information in business ends. Owing to that, information
management is incredibly necessary for increasing capabilities of enterprises to absorb and profitably
exploit externally obtained information.
Besides, information management insures that internally created, adopted and remodel information is
additionally employed in industrial ends, like prototypes of merchandise, ideas regarding services,
applying its own patents, and also the like. By exploitation, information is incorporated in new
product/service and different preceding results of innovation activity.
Of specific importance is that the incontrovertible fact that information management permits
aggregation and codifying tacit information into explicit information that is offered to everybody in
organization. Information management more provides not solely higher gathering and sharing explicit
information, but additionally higher integration and availableness of total information in enterprise that
has an overall positive impact on innovation capability. Information management improves capabilities
of enterprise to amass, adopt, remodel and apply external information, and therein approach will
increase assimilating capability of an enterprise that is incredibly necessary for innovation method.
Knowledge management is important for achieving internal and external cooperation that, in turn,
encompasses a vital role in transferring tacit information among people and organizations. The higher
the link performances are, the additional intensive transfer of tacit and explicit information among
strategic partners is. Knowledge management creates innovative culture that encourages making and
sharing information. Enterprises with culture supported innovation and information, in an exceedingly
more practical approach support the processes and programs for developing information resources, in
addition as making and realizing varied innovations of merchandise and services.
Knowledge management is incredibly vital for innovation method in enterprise, as a result of it's in
perform of undefeated realization of all its phases. It plays a very important role in making, developing
and implementing valuable, commercially acceptable and profitable ideas of an enterprise within the
market. Also, information management encompasses a vital role in gathering feedback info from the
market, that is that the basis for future innovations in enterprise.
In order to amass and sustain competitive advantage, enterprise ought to perpetually develop
information resources, encourage creative thinking of workers and increase innovation capability. Up to
date enterprises ought to unendingly increase potency in exploitation information resources through an
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acceptable information management system, and thereby improve its innovation skills. Therefore,
enterprises that with success manage information and have developed system of innovations, will
expect from their workers generating new innovative solutions and up competences, as a result of they
represent key determinants of enterprise innovation skills.

Knowledge management typically results in up operational performances in an enterprise by providing

reduction of mistakes and prices in its daily business activities, larger labor productivity, higher and
quicker determination issues, higher deciding, additional intensive business cooperation, deeper
understanding of desires and needs of shoppers, and up merchandise, services and business processes.
Because of inability of quantifying all the results of data management on business performance and
innovation skills of enterprise, results of quality of data management application are expressed chiefly in
descriptive terms. result on monetary performance within the future may be foretold, however will
hardly be quantified exactly, as a result of with the exception of management information system there
are several business factors that have influence on them. In spite of the approach of activity the impact
and result of application of the construct of data management, the very fact that it enhances innovativeness, effectiveness, and potency is plain.
Effective information management permits increasing effectiveness of business processes, and overall
effectiveness of enterprise as network of business processes in achieving operational and strategic goal.
Effective information management helps a corporation regulate quickly its business processes in
accordance with current conditions that particularly become noticeable in times of frequent and
dynamic changes. Efficient information management permits workers to use information, and different
resources additional expeditiously. During this approach business processes is improved, i.e. potency of
enterprise as business system on the total.
Examining of data management within the process of rising innovativeness and aggressiveness of an
enterprise detached new dimensions of data management. This analysis points out the necessity for a
modification of managing apply in modern enterprises within the era of data economy within the
direction of consistent implementation of the construct of data management. In inadequate
comprehending the importance of data management construct and its inconsistent implementing within
the system of an enterprise, there could also be serious barrier in its adapting to demands of dynamic
business surroundings.

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References

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