Knowledge management

Knowledge management (KM) is a business activity through which organizations generate value utilizing their explicit and tacit intellectual assets. This is accomplished through the dissemination and utilization of knowledge. The practice of KM involves combining explicit assets (information technologies) with tacit assets (competencies and experiences possessed by employees). In one form or another, knowledge management has been around for as long as people have been conducting business. Elements of KM exist in all work environments. SENIORITY systems explicitly place a value on the knowledge gained over time by employees who have worked longer in the organization. Companies often have someone who is known and deferred to for his or her knowledge of company history. In many societies, philosophers, priests, teachers, and politicians act as the source of knowledge for their organization. In the 1990s, KM became popular among “new economy” companies, where the rapid pace of technology led to almost continual improvement of software, computer, and electronic technology. Firms that did not retain their RESEARCH AND DEVELOPMENT personnel quickly lost their knowledge base and competitive advantage. Knowledge management helps organizations gain knowledge from its own experiences and the experiences of its employees. This knowledge is then merged into the organizational structure and existing technology, which in turn produces new knowledge, continuing the organization’s evolution. Many companies have attempted to formulate explicit knowledge-management programs. In any organization it is difficult to determine what is known and who knows it. MARKET INTELLIGENCE professionals recommend determining what information is most valuable and deciding who should have access to that information. KM professionals attempt to determine where information is gathered and coordinate access to that knowledge in order to achieve company goals. With today’s electronic information systems, many professionals are experiencing information overload. Effective DATABASE MANAGEMENT systems allow managers to access explicit information as needed and combine tacit knowledge to explore new opportunities, address problems, and achieve objectives.