Knowledge management (KM) addresses the critical issues of organizational adaptation, survival and competence in a rapidly evolving environment. KM embodies organizational processes that seek a synergistic combination of the data and information processing capabilities of information and communication technologies (ICT), and the creative and innovative capacity of human beings to improve ICT. In that role, knowledge management has the capacity to improve quality management and avoid or minimize losses and weaknesses that result from poor performance as well as increase the competitive level of the company and inability to maximize its survival potential in the global marketplace. To achieve quality, all parties including the clients, company consultants, contractors, entrepreneurs, suppliers, and governing bodies (i.e. all involved stakeholders) must encourage collaboration and commitment to quality. Design‐based organizations have to be quality driven to support healthy growth in today's competitive market. In the march towards globalization (i.e. the one world community) as well as local industries comprising many companies, their design‐based organizations need to have superior quality management and knowledge management capabilities to anticipate changes. Intelligence and knowledge is a form of strategic capital, which can be cultivated, created, stored, managed, retrieved and measured to give competitive advantage. To anticipate the needs of the marketplace, a new system that is called quality value model (QVM) is proposed. QVM is a combination of communication and information technologies (ICT) as well as creative and innovative capabilities of human beings to meet challenges and to develop high‐quality products. Quality is a reflection of the properties in a product that customers use to value and evaluate its economic worth. Furthermore, the mathematical technique within QVM calculates input‐factor changes within the product. This enables companies to be more responsive and aids prediction in respect to change and the management of decision uncertainty.
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