Importance Of Knowledge Management

The importance of knowledge management in Organizations

Knowledge management is very vital for the success of the company and as well the industry wide in my readings of enormous articles titled knowledge management I have summed up the following points.

For centuries of years many experts across different disciplines such as philosophers, scientist, business analysts and intelligent laymen have been concerned about creating acquiring and communicating knowledge and improving the reutilization of knowledge. That involves basically creating the knowledge store it, sharing it and retrieving the knowledge so that process of the knowledge management will stay competitive and would create competitive advantage.

The mastermind behind the knowledge

William R. King (Easterby Smith and Lyles 2003) consider organizational learning to focus on the process, and KM to focus on the content, of the knowledge that an organization acquires, creates, processes and eventually uses. Another way to formulize the relationship between the two areas is to view organizational learning as the ultimately goal of the knowledge management by motivating the creation, dissemination and application of knowledge, knowledge management initiative pay off by helping the organization embed knowledge into organizational processes so that it can continuously improve its practices and behaviors and peruse the achievement of its goals. Dixon(1994), in describing an “organizational learning cycle” suggested that accumulated knowledge is of less significance than the process needed to continuously revise or create

King (Mitrovic et al., 2008, pp. 339–346). Company leaders who drives the successful companies and became successful in their business, product and process perceive that the increase of their performance is added the contribution of the intangible asset that those organizations have and mainly that intangible knowledge refers to the knowledge, skills, and abilities those employees of the companied have in order to achieve the success that were expected to achieve by their respective companies.

The changes in the business development caused that companies value is largely their equation towards their tangible assets to their intangible assets (80 %). The relationship between tangibles and intangibles resources of the world leading companies is shown in this articles according William R.King (Antonic, 2005, pp. 77–82)