What is Knowledge Management (KM)?

The basic definition of knowledge management from the business perspective states that it is the vital set of methods that manage the conception, distribution, and exploitation of knowledge. In today’s Information Age era, with the technological advancements in communication, Knowledge management techniques have an intense effect on each and every decisions made by a business and the actions taken in response to market situations.

Knowledge management in business networks aids in recognizing and understanding the methods that affect decision making and protective actions. Also, knowledge management tools help to improve the quality of the decision making process and in turn bring overall benefit to the business.

The business or corporate knowledge also helps in identifying and preserving business experience and understanding of the methods used to tackle unplanned and planed situations. Knowledge management also aids the businesses to revise and constantly regenerate managerial and business knowledge base. The key business aspects such as design of suitable managerial hierarchy, assisting teamwork and dissemination of timely business knowledge are part of knowledge management strategies.

Business Information Analysis and Information Planning are the other aspects of knowledge management. The Business Knowledge is accumulated in the human brain or in business processes, documentation, company products, user services, amenities and organizations vision and focus. Knowledge management helps to identify the unique information and knowledge sources, decisive business tasks and probable bottle necks that affect knowledge dissemination to certain levels in the organisation.

Knowledge management also helps businesses to protect and preserve their intellectual property, aids in creating opportunities to enhance decision making process, business services and products. Businesses gain the advantages of increasing their value in the competitive environment as well as benefit in sustaining their business with continuous growth and flexibility in decision making. Knowledge management goes together and boosts other aspects of business like total quality management (TQM). It also aids in business learning in order to maintain a competitive position in the marker.

Need for Knowledge Management

Customers are very vital to any business enterprise. In order to provide good services to the customers and to retain them, the businesses have to improve their production and cycle times, posses adequate human resources, inventory and facilities, provide good customer service, innovate new ideas and develop quality products, gain important market information, develop a knowledge base, provide valuable consultancy and focus on continuous learning.

The knowledge management addresses these issues. It helps to organize the information and knowledge flow inside and organisation to aid the employees and also helps in dissemination of this information to the customers in order to gain reputation and stay competitive in the market. Over a period of time the accumulated expertise and knowledge base will become vital intellectual property of the business domain with immense value to the employees and the customers as well.

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