The Importance Of Knowledge Management

735 Words3 Pages
2. INTRODUCTION 2.1Background Organizations have experienced many changes to the ways they operate. The changes are a result of many factors, including the shift to a knowledge economy and the increased streamlining of work activities because of technological innovations. The shift in focus from products to services has encouraged greater recognition of the importance of the knowledge held within an organization. Knowledge is the process of translating information (such as data) and past experience into a meaningful set of relationship which are understood and applied by an individual. The twenty first century is the era of knowledge economy, in which most organizations possess knowledge that enables them to improve their performance. Knowledge, management is recognized as an important weapon for sustaining competitive advantage and improving performance. Knowledge management is a new method for thinking about the organization and sharing creative and intellectual resources of the organization and in the other words it consists of all the methods by which the organizations manages its knowledge-based assets including knowledge collection, storage, transmission, usage, updating and creation. The need of knowledge management based on the growth of business community perception stems from the fact that knowledge is regarded as an important element is organizational performance and access to sustainable competitive advantage 1.2 Motivation of the Study Achieving and maintaining competitive advantage requires better information management, Information Quality, Information Reliability, Information Access Information Sharing and providing better information management to transform the competitive space to transform relationships betwee... ... middle of paper ... ..., store, share and leverage not only data and information but also the knowledge of firms. If the majority of information needed for decision making exists in the minds of employees, a system is needed to capture and codify this knowledge. It suggested that emergence of new technologies has increased the ability of organizations to share knowledge, not just internally, but with external stakeholders. E-knowledge networks allow their participants to create, share and utilize strategic knowledge to improve operational and strategic efficiency and effectiveness. 4. Objective The overall objectives are: - 1. To identify the Key Enablers for Implementation of Knowledge Management in organizations. 2. To study the impact of Knowledge Management on Organizational Performance. 3. To investigate whether knowledge management has a direct effect on business performance.
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