Knowledge Management (KM)

Several authors acknowledge that the ultimate goal of KM is to improve organizations efficiency and productivity, hence profitability (APQC, 1996; Davenport and Prusak, 1998). For the purpose of this chapter, we lean towards the definition that KM is the ability to create and retain greater value from core business competencies (CIO, 2000) and a practice that finds valuable information and transforms it into necessary knowledge critical to decision making and action (Beveren, 2002). This could be achieved by various strategies to provide the right knowledge for the right people at the right time (APQC, 1996). Organizations are using various approaches to achieve these goals. Some are focusing on management of people and others on the management of information (Sveiby, 1996).

Tyndale (2000) further explained Sveiby's view, using the terms codification and personalization. He used codification to explain KM that is IT focused. This strategy includes attempts to codify knowledge and carefully store it in a database where it can be accessed and used easily by anyone in the company. This approach considers knowledge as objects that can be identified and handled in information systems. Personalization was used to explain KM that is people-focused. This approach regards knowledge as a process that is closely tied to the person who developed it. This kind of knowledge is shared mainly through direct person-to-person contacts. In this approach, technology is only used as the infrastructure that enables the capture, storage, and delivery of contents to those who need it when they need it. Bhatt (2001) also suggested that exclusive focus on codification or personalization does not enable the firm to sustain its competitive advantages but rather it is the interaction between technology, techniques and people that allow an organization to manage its knowledge effectively.