The Concept of Knowledge Management

Knowledge is information that has value: It is relevant, current, and applicable to meeting performance goals. As Peter Drucker stated, the key to unlocking the value of information and knowledge is action, that is, it must be dynamic. The active and dynamic implementation and management of knowledge are critical to enabling organizational performance enhancements, problem solving, decision making, and teaching (Liebowitz, 1999). Knowledge management (KM) defines the processes required to effectively manage knowledge. KM is the systematic, explicit, and deliberate building, renewal, and application of knowledge to maximize an enterprise s knowledge-related effectiveness and returns from its knowledge assets (Wiig, 1997). KM applies systematic approaches to find, understand, and use knowledge to create value (O Dell, 1996). The processes and terminology associated with KM often sound abstract, only hype, or simply new management verbiage ; however, it is concrete, practical, and profoundly important (Leonard, 1995). The understanding of KM is particularly vital to technical enterprises, both new and established. Knowledge and KM are rapidly evolving as the starting point for action in all businesses, and over the past 10 years, this understanding has surfaced as a major focus for its role in the enterprise value process. To renew and sustain a competitive edge in today s business environment, an enterprise must capture and...