Knowledge management and innovation based on theory of constraints

Knowledge management is crucial to organizational survival and development, it is an important foundation of knowledge innovation of enterprise. The aim of implementing enterprise resource planning (ERP) system is to construct a knowledge management system with core competence, and to realize the innovation of business process and organizational structure on the basis of knowledge management system. In the process of implementing ERP system, searching for the key points of innovation of business process reengineering and organizational structure is always the most crucial. As a thinking of systematic optimization, the theory of constraints (TOC) reveals the existence of system constraints, and should be a feasible method in the process of knowledge management and innovation. As a method of multi-attributes group decision-making and data fusion, combined weighted geometric averaging (CWGA) operator can be used to search for system constraints. The paper proposes a method of knowledge innovation by using CWGA operator to search for the system constraints, and then illustrates the feasibility of CWGA with an example. Meanwhile, the paper analyzes the methods of innovation of business process and structure of organization systematically as well, aimed for ERP and based on TOC, so as to drive the implementation process of ERP system, and to establish an effective system of knowledge management innovation.