Strategic Importance of Knowledge Management

6580 WordsMay 1, 200527 Pages
Abstract Today the world has more and more of free flow of information leading to transfer of knowledge from a person or an organization to others. Whereas this invariably leads to faster development, it also impacts the competitive advantage held by the innovators of processes or technology. It has therefore become strategically important for one and all in business to understand the knowledge, processes and controls to effectively manage the system of sharing and transferring the information in the most beneficial fashion. This paper dwells upon definition, types, scope, technology and modeling of knowledge and Knowledge Management while examining its strategic importance for retaining the competitive advantage by the…show more content…
In a time where turbulence, change and hypercompetition, are accelerating it is crucial for organizational survival to invest in relationship knowledge. The type of relationship knowledge which is relatively easy to communicate, may be classified as explicit knowledge. Knowledge management [KM] A business discipline called Knowledge Management emerged that identifies captures, organizes, and processes information to create knowledge. Knowledge Management is a conscious effort to get the right knowledge to the right people at the right time so that people can share and put information into action in ways that improve an organization's performance. Knowledge is crucial to the operation of businesses, to predicting outcomes of events, to understanding how and why things function, and to appreciating things that are happening around us. With the rising importance of knowledge in our global economy, knowledge management has gained worldwide attention. Individuals including Sveiby (1997), Stewart (1997), Davenport and Prusak (1998), Allee (1997) and Nonaka (1991) have worked in the area to discover the opportunities, practices and benefits of knowledge management. Companies such as Buckman Laboratories, Dow Chemicals, Skandia, Hewlett-Packard, Celemi, and IBM to name a few, have made use of knowledge management in order to more effectively
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