Knowledge Management
KNOWLEDGE
MANAGEMENT
Key to Organisational Progress
In this age of digital technology and increasing globalisation,
business leaders are more and more realising the importance of
knowledge and information.
Although intangibles, knowledge and information are genuine
assets. Often worth a great deal more than property and real
estate. By providing sound intelligence about everything from
internal procedures to changing markets and technologies …
competitor activity to product innovation … good knowledge
management invariably gives organisations a clear head
start.
However, in this world of massive information overload,
knowledge management is often associated with - and restricted to -
managing information on corporate databases. While important,
this is only part of the story.
According to Kakabadse, Kouzmin & Kakabadse (Cranfield
School of Management. UK), in addition to information, knowledge
management encompasses "the creation of processes and behaviours
that allow people to transform information into the organisation,
and create and share knowledge".
"Knowledge management thus includes much more than simple
information. The management of knowledge also encompasses
people and technology, as well as organisational processes and
culture", the study concludes.
Through effective use of knowledge management, organisations
continue learning about their business environment.
Unfortunately, many leaders focus inward, on managing their own
businesses and interests. As a result, they often lose sight
of important changes in the larger environment.
Managers who remain fixated inwards run the danger of losing out
to more adaptive competition. In contrast leaders who employ
knowledge management strategies know how to tweak and modify their
organisation's strategies in anticipation of environmental
changes.
Knowledge management strategies help business leaders develop
their adaptive abilities. Such individuals have the power to
pull out of deteriorating market situations before their companies
suffer loss. Conversely, they are able to stay one step ahead
of the competition by anticipating changing needs, trends or
tastes.
Recent research suggests that, particularly in this age of
specialisation, divisions are more regularly emerging between
leaders and "knowledge workers". These include people
such as researchers, software engineers and technology
workers. To overcome this problem, management is urged to be
increasingly proactive in ensuring dynamic interaction with its
'knowledge team'.
In contrast to traditional, military-style hierarchy where
decisions are simply handed down from rank to rank, those versed in
knowledge management are more able to create an atmosphere that
encourages communication, problem understanding and
negotiation.
Such insightful individuals can prevent disasters that cost time
and money like the production manager for a Sydney car parts
manufacturer who failed to see and interpret market data resulting
in a two-week production halt and hefty loss of
income.
Given the advantages offered by a firm grasp of knowledge
management principles, the dearth of organisations that actively
practice these strategies may come as a surprise. It is
regularly observed, however, that knowledge management was closely
related to the software and dotcom industry.
When the internet bubble exploded, knowledge management suffered
"guilt by association." Subsequent advances in IT and
introduction of business information and efficiency tools - such as
Enterprise Resource Planning (ERP) - is once again generating
renewed interest in knowledge management.
"More people are now seeing how these advanced media and new
attitudes are helping shift the balance of economic forces that
define competitive advantage", explains Steve McGrath, Jigsaw's
founder and MD.
In summary, a firm grasp of knowledge management principles
allows management to be more adaptive, both to the constantly
evolving needs of the marketplace as well the ever-changing
structures of business worldwide.