Learning Objectives
By the end of this chapter, you will be able to:
- Define Knowledge Management (KM) and its importance to an organization.
- Differentiate between explicit knowledge and tacit knowledge.
- Describe the four stages of the Knowledge Management System Lifecycle.
- Identify the types of tools used in a Knowledge Management System (KMS).
What is Knowledge Management (KM)?
Knowledge Management (KM) is the systematic process of capturing, developing, sharing, and effectively using organizational knowledge. It refers to a multi-disciplinary approach to achieving organizational objectives by making the best use of the collective expertise and insights of the people within the organization.
Figure 1: Knowledge Management Overview
While data management focuses on organizing raw facts, knowledge management is concerned with a much more valuable asset: the experience and know-how of employees.
Explicit vs. Tacit Knowledge
Organizational knowledge can be divided into two main types:
flowchart TB
subgraph KNOWLEDGE["Types of Knowledge"]
direction LR
EXPLICIT["📝 EXPLICIT\nDocumented, Codified\n\n• Manuals\n• Reports\n• Procedures\n• Databases"]
TACIT["🧠 TACIT\nIn People's Heads\n\n• Experience\n• Intuition\n• Skills\n• Know-how"]
end
EXPLICIT --> |"Easy to Share"| VALUE["💰 Business Value"]
TACIT --> |"Hard to Capture"| VALUE
style EXPLICIT fill:#2e7d32,color:#fff
style TACIT fill:#1565c0,color:#fff
Figure 2: Explicit vs Tacit Knowledge
- Explicit Knowledge: This is knowledge that can be easily articulated, written down, and shared. It is formal and systematic.
- Examples: Reports, manuals, procedures, formulas, and tutorials. Explicit knowledge is relatively easy to manage with traditional information systems.
- Tacit Knowledge: This is the knowledge that is in people’s heads. It is personal, context-specific, and difficult to formalize and communicate. It includes skills, experiences, intuition, and insights.
- Examples: The instinct of an experienced salesperson, the troubleshooting skill of a veteran engineer, or the creative process of a designer. Capturing and sharing tacit knowledge is the biggest challenge and greatest opportunity in KM.
The Knowledge Management System Lifecycle
Knowledge Management is a continuous cycle that involves several key stages:
flowchart TB
CREATE["💡 CREATE\nDiscover & Capture\nKnowledge"]
STORE["🗃️ STORE\nRepository &\nKnowledge Base"]
DISSEMINATE["📤 DISSEMINATE\nShare via Portals,\nWikis, Search"]
APPLY["✅ APPLY\nUse for Decisions\n& Problem Solving"]
CREATE --> STORE --> DISSEMINATE --> APPLY
APPLY -->|"New Knowledge\nCreated"| CREATE
style CREATE fill:#6a1b9a,color:#fff
style STORE fill:#1565c0,color:#fff
style DISSEMINATE fill:#2e7d32,color:#fff
style APPLY fill:#ef6c00,color:#fff
Figure 3: The Knowledge Management Lifecycle
-
Create (or Capture): This stage involves the discovery and creation of new knowledge. Knowledge can be created internally through research and development or captured from external sources. It also involves processes for converting tacit knowledge into explicit knowledge, for example, by having an expert write a detailed guide or record a video tutorial.
-
Store: Once knowledge is captured, it must be stored in a way that is accessible to the organization. This is typically done in a knowledge repository or knowledge base. The knowledge must be codified, formatted, and indexed for easy retrieval.
-
Disseminate: This stage focuses on making the stored knowledge available to those who need it. Dissemination can be done through various means, including intranets, portals, wikis, and powerful search engines. It also involves fostering a culture of knowledge sharing within the organization.
-
Apply: This is the final and most important stage, where the knowledge is used by employees to perform their work, solve problems, make decisions, or create new innovations. The application of knowledge provides value and often leads to the creation of new knowledge, which starts the cycle over again.
Knowledge Management Systems (KMS)
A Knowledge Management System (KMS) is an information system that supports and enhances the process of knowledge management. A KMS is not a single technology but rather a collection of tools and technologies, which can include:
- Document Management Systems: For storing and retrieving explicit knowledge like reports and manuals.
- Intranets and Enterprise Portals: A central gateway to access company information and applications.
- Wikis: Collaborative websites where employees can contribute and edit content (e.g., an internal Wikipedia).
- Expert Locator Systems: A directory of employees that lists their areas of expertise, making it easy to find someone who has the tacit knowledge you need.
- Collaboration Tools: Tools like discussion forums and instant messaging that allow employees to share knowledge and collaborate in real-time.
Summary
Knowledge Management is a strategic discipline focused on leveraging an organization’s most valuable asset: the collective knowledge of its people. By understanding the difference between explicit and tacit knowledge and by implementing a systematic lifecycle to create, store, disseminate, and apply that knowledge, organizations can improve decision-making, foster innovation, and avoid “reinventing the wheel.” Knowledge Management Systems provide the technological foundation to support this critical process.
Key Takeaways
- KM is the process of capturing and using organizational knowledge to achieve business objectives.
- Tacit knowledge (know-how, experience) is harder to manage but often more valuable than explicit knowledge (documented facts).
- The KM lifecycle consists of creating, storing, disseminating, and applying knowledge.
- A KMS is a collection of IT tools that support the KM process.
Discussion Questions
- Why is managing tacit knowledge so much more challenging than managing explicit knowledge?
- Think of a time you started a new job. What kind of knowledge management systems, if any, were available to help you learn?
- How can a company encourage its employees to share their knowledge instead of hoarding it?
