Answers to Frequently
Asked Questions About Knowledge Management
This page contains frequently asked questions (FAQ's) about knowledge management. In addition, we have provided a glossary section to define some commonly used knowledge management terms.
Table of Contents
What is knowledge?
Why is knowledge valuable?
What is knowledge management?
How does a knowledge management system
work?
Who uses knowledge management?
Why use a knowledge management
tool/system?
What is knowledge?
According to Webster's Dictionary, knowledge is the fact or condition of knowing something with familiarity gained through experience or association. Knowledge may also be described as a set of models that describe various properties and behaviors within a domain. Knowledge may be recorded in an individual brain or stored in organizational processes, products, facilities, systems and documents.
In reality, though, there exist many possible, equally plausible definitions of knowledge. For the purposes of our project, we will focus upon the following definition of knowledge: The ideas or understandings which an entity possesses that are used to take effective action to achieve the entity's goal(s). This knowledge is specific to the entity which created it.
Why is knowledge valuable?
In today's fast-paced society, an entity's knowledge base is quickly becoming it's only sustainable competitive advantage. As such, this resource must be protected, cultivated and shared among entity members. Until recently, companies could succeed based upon the individual knowledge of a handful of strategically positioned individuals. However, when competitors promise more knowledge as part of their services, the competition is over. Why? Because organizational knowledge does not replace individual knowledge; it complements individual knowledge, making it stronger and broader. Thus, the full utilization of an entity's knowledge base, coupled with the potential of individual skills, competencies, thoughts, innovations and ideas will enable a company to compete more effectively in the future.
The systematic process of finding, selecting, organizing, distilling and presenting information in a way that improves an employee's comprehension in a specific area of interest. Knowledge management helps an organization to gain insight and understanding from its own experience. Specific knowledge management activities help focus the organization on acquiring, storing and utilizing knowledge for such things as problem solving, dynamic learning, strategic planning and decision making. It also protects intellectual assets from decay, adds to firm intelligence and provides increased flexibility.
How does a knowledge management system work?
Many enterprises do not "know what they know." Such a situation can often lead to duplication of effort throughout an organization. Thus, organizations must ask themselves two important questions:
(1) What are our knowledge assets?
(2) How should we manage those assets to ensure a maximum return on them?
There are no right or wrong answers to these questions. Solutions will depend upon several factors such as the type of organization, its culture and its needs. Nevertheless, effective management of knowledge focuses on solutions that encompass the entire system: organization, people and technology. Computers and communications systems are good at capturing, transforming and distributing highly structured knowledge that changes rapidly. Some companies are using analysis, planning and computer supported work systems to radically improve decision making, resource allocation, management systems, access, and promulgate process know-how and overall performance as a way to develop core strategic competencies.
Who uses knowledge management?
Any organization can effectively use knowledge management to develop and improve their control and effectiveness. For example, Hewlett Packard has developed a system known as 'Knowledge Links' which they use to codify, identify and store important company knowledge. This knowledge is accessible by any employee within the company.
Why use a knowledge management tool/system?
Any company that can figure out how to give its people the organizational knowledge they need -- at the point and time needed -- can position itself to compete more effectively and succeed much faster. Many companies have vital knowledge resting with one individual and do little to make the knowledge more generally available. Many companies are unaware of their own knowledge base and evidence has shown that knowledge is often lost from a company through employee attrition or related cost saving measures. The enterprise that harnesses its intellectual capital can apply that asset to its business challenges and opportunities.
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Revised: February 01, 1998.
Graduate School of Business, University of Texas at Austin
