A focus on knowledge is helping many organizations improve their performance. Significant bottom line cost savings, faster time to market for new products and improved customer service are some of the benefits that are regularly reported as a result of knowledge management. It helps organizations gain a better understanding of knowledge, its flows and its business impact. The knowledge movement is still relatively new and even the most advanced organizational KM initiatives still have much to do before KM is fully institutionalized. In most organizations the challenges of developing appropriate cultures, introducing new technologies and of measuring the value of knowledge are far from resolved.

Even as organizations gain benefits by applying knowledge management internally, there is potentially more scope by shifting to an external focus. The tools and techniques of knowledge managers help them gain better knowledge about their customers and their unmet needs. It also helps them identify knowledge that has value outside the organization. Many opportunities can be created by capitalizing on an organization's knowledge by converting some of it into knowledge products and services.

The Internet is significantly changing the nature of the business environment. It is spawning new ways of sharing and developing knowledge, new ways of interacting with suppliers and customers, and new ways of trading using e-commerce. Almost every business will need to become an e-business to survive and prosper. The next chapter describes how e-business is another essential foundation for creating a thriving k-business.