Strategic Knowledge Management:Enhancing Organizational Performance

Knowledge Management

Definition of Knowledge Management

Knowledge management is a series of activities involving the deliberate configuration of information within organizations. Sousa & Rocha (2019) define knowledge management as a conscious process that allows entities to define, structure, retain and share the knowledge and experience accumulated by their employees. Oliva & Kotabe, (2019) defines it as the procedure followed during the creation, management, sharing and consumption of knowledge and other organizational information. These definitions show that knowledge management entails a multifaceted approach to the realization of organizational objectives through optimum utilization of knowledge. Knowledge management is primarily applied to improve organizational efficiency and increase confidentiality within an organization (Abualoush et al., 2018). This approach may include training employees and learning customer preferences. These measures be expanded to include knowledge structuring and auditing, all in a bid to improve collective knowledge reserves within entities. Overall, knowledge management emphasizes the improvement of organizational outcomes. Some indicators include increased innovation, expanding competitive advantage, integrating new concepts into the daily workplace routine and the consistent improvement of organizational indicators and outcomes. On several occasions, knowledge management has overlapped with organizational learning. These are different concepts because knowledge management lays emphasis on utilizing knowledge as a strategic asset (Oliva & Kotabe, 2019). It also promotes knowledge sharing. Consequently, knowledge management is considered as a contributor to organizational learning. Since its establishment as an independent academic discipline, knowledge management has been taught as a constituent unit in several academic courses. These include management, information science and business administration (Ferreira, Mueller & Papa, 2018). Other technology-based learning areas that have contributed to the growth of knowledge management include public policy studies, computer science and public health. This continued popularity explains why many organizations have established well-funded departments dealing with knowledge management (Abubakar et al., 2019). The information emanating from these sectors informs business strategy and operations in other critical departments, including the human resource management and development units.

Objectives of Knowledge Management

Knowledge management is a process that exists primarily to facilitate information sharing. This scope may be expanded to include ideas, perspectives and experiences accumulated during the day-to-day running of the organization (Abubakar et al., 2019). Sharing this knowledge is important because it enables stakeholders to make informed decisions. It also increases efficiency by eliminating the need for different departments to rediscover knowledge that is already available to their peers in other departments. Ferreira, Mueller & Papa (2018) opine that knowledge management will help organizations to improve the quality of its decisions by providing guarantees about the reliability of existing knowledge. This process also secures the data through a viable information lifecycle that is customized to satisfy organizational needs (Santoro et al., 2018). Knowledge management also enables the service providers to improve on service quality and efficiency in their daily operations. This outcome increases employee satisfaction, and reduces costs associated with service delivery by eliminating the need for knowledge rediscovery. Knowledge management will enable staff members to maintain a common understanding of the services offered to their customers and the corresponding value of these services (Abualoush et al., 2018). This reality helps the organization to appreciate the benefits drawn from various services, making it easy for them to concentrate on the most beneficial outcomes and reduce emphasis placed on other engagements. Knowledge management helps organizations to develop a regulated knowledge management system that provides access data, information and other relevant knowledge to organizational employees. This information can be controlled to guarantee confidentiality and ensure employees receive audience specific information (Oliva & Kotabe, 2019). Most significantly, knowledge management helps organizations to develop frameworks that facilitate information gathering, analysis, storage, sharing and maintenance within the organization. This ability ensures data availability for all interested parties within the entity of interest.

Theories of Knowledge Management

Knowledge management has evolved as a distinctive academic field over the years. This development as a scientific field has been anchored on support derived from revered scholars and noteworthy practitioners and consultants in the corporate world (Santoro et al., 2018). Various approaches and applications of knowledge management have been proposed by these scholars. Consequently, these applications have been categorized under three distinctive theories, namely techno-centric, ecological and organizational theories of knowledge management (Abualoush et al., 2018). The techno-centric theory deals with various technological approaches and interventions applicable to the subject of knowledge management. It may also include all processes involved in designing technological innovations that help organizations to manage the flow of knowledge and information storage. Ecological theories of knowledge management lay emphasis on people and their relationships within specific learning communities. These theories focus on existing interactions among these people, including the interior and exterior factors that characterize knowledge sharing processes (Santoro et al., 2018). Organizational theories of knowledge management concentrate on organizational structures. This information includes the hierarchical and cultural designs of an organization and their impact on knowledge and knowledge process management. Overall, these theories acknowledge that knowledge management includes the roles played by people, technologies and processes in sharing knowledge within their areas of interest.

Components of Knowledge Management

Source: (https://www.slideteam.net/knowledge-management-components-ppt-icon.html)

Knowledge management has four general categories, namely, strategies, processes, content and people. These components are an ever-present fixture in the knowledge management cycle, regardless of the industry or organizational size. People spearhead the all knowledge sharing processes, while clearly outlined processes manage knowledge flow (Abualoush et al., 2018). Content and IT tools play a crucial role by connecting the right persons and the appropriate content, while strategies provide a template that can be followed to satisfy urgent organizational information needs.

Organizations should have the right persons in place to ensure the successful implementation of knowledge management framework. The human resource plays the crucial role of spearheading critical facets of the knowledge management strategy (Martins et al., 2019). People help the organizations implement their knowledge management strategy by offering insights into the greater organizational strategy, and guiding the actual implementation of this process. The people tasked with shedding light on the organizational vision should be visible and highly engaged in the daily occurrences of the business process. This pool should have persons that stand to gain immensely from the successful implementation of a functional knowledge management framework (Santoro et al., 2018). Additionally, the team of stakeholders that will guide implementation should be drawn from employees involved in the daily running of the business venture. Collaboration between these categories of persons is essential for the success of the knowledge management initiative. Organizations should identify a core team that will spearhead the process of implementing a knowledge management framework and organize them as a team (Abubakar et al., 2019). Several champions and facilitators can be chosen from this team, in addition to a steering committee to guide the implementation process. Organizations should engage many employees across various sectors to entrench proper knowledge sharing frameworks.

Process

Organizations need vibrant knowledge management processes to guarantee the smooth flow of knowledge. An organization needs a strong knowledge management team to design and maintain functional knowledge sharing and management processes within the organization (Oliva & Kotabe, 2019). The management team should be able to anticipate and identify any impediments to smooth knowledge flow and intervene accordingly. This team should measure the input and output volumes within the knowledge cycle to facilitate access to information. The standard knowledge flow process follows a seven-step sequence, which begins with knowledge creation. People create new knowledge across all spheres of the organization through their processes and interactions. This leads to the next step that involves identification of knowledge that is critical to the strategic and operational outcomes within the organization (Ferreira, Mueller & Papa, 2018). Such knowledge is collected in the third phase of this cycle, and is reviewed in the fourth phase. The review is an important stage because it allows stakeholders to interrogate the knowledge with a view of establishing its accuracy and relevance. Knowledge that satisfies these criteria becomes applicable within the company. The fifth phase entails sharing all applicable knowledge. This phase is actualized by documenting such information. Knowledge can also be shared by engaging in collaborative activities (Santoro et al., 2018). The sixth phase of this cycle entails accessing this knowledge, a feat achieved through push and pull mechanisms. The last stage entails utilizing this information to solve problems and enhance organizational decision making. Summarily, knowledge management teams should formulate strategies that will entrench these steps into the organizational business processes utilized daily (Abubakar et al., 2019). A favored approach involves the identifications of specific jobs and processes that can accommodate various steps of the knowledge management process.

Content

Content denotes any form of documented information. This definition encompasses information drawn from a wide variety of sources, including best practices and other work place tips shared by colleagues (Ferreira, Mueller & Papa, 2018). It may include videos and ready to use templates. Unstructured information can also be included within organizational content that can be shared between various stakeholders. A reliable information technology infrastructure is essential for content creation and sharing. Information technology allows users to create content, store it and access it at their convenience during their daily operations. Knowledge management frameworks guide data management approaches, which means employees adhere to strict guidelines, which include appropriate data storage practices. It also eliminates the inconveniences of tracing information that cannot be found or reusing outdated information (Abubakar et al., 2019). Information technology empowers the organization to create knowledge management programs. These creations allow the organization to generate workflows and other appropriate tools that define knowledge creation and vetting criteria. The tools also outline knowledge organization protocols and other appropriate tools that link people to relevant content. Information technology offers the platform utilized during actualization of the envisioned knowledge management framework (Martins et al., 2019). This reality means an organization can promote collaboration within its departments, appreciate innovations and avail educative content to needy employees.

Strategy

Successful knowledge management programs rely on well documented and relevant strategies. A clear strategy is essential for organizational success because having the appropriate technological tools are insufficient when establishing a successful knowledge management framework within the organization (Santoro et al., 2018). The strategy should be informed by clearly outlined organizational knowledge needs to ensure relevant solutions are attained. A proper strategy ensures the knowledge management framework provides relevant solutions to existing business challenges through the appropriate tools and within a reasonable budgetary window.

Benefits of Knowledge Management

Knowledge management plays an essential role in boosting organizational operations, most especially its decision-making functions. Enhanced decision making often results in improved efficiency (Martins et al., 2019). Knowledge management offers all employees access to the overall expertise that resides in the organization. Expanding the knowledge pool accessible to employees means the organization has a smart workforce that can make informed decisions at a faster rate and guarantee improved organizational outcomes. Knowledge management support innovation processes within the organization (Abualoush et al., 2018). This reality means customers enjoy the benefits emanating from improved application of organizational best practices. It also guarantees a reduction in employee turnover, a reality that boosts organizational outcomes and guarantees implementation of best practices.

Knowledge management continues to gain prominence among many organizations. This reality makes it a critical tool for organizations seeking to cultivate and maintain a competitive advantage (Ferreira, Mueller & Papa, 2018). A reliable way of staying ahead of the competition is to maintain business operations informed by intelligent systems. This approach helps the organization to maintain flexibility and versatility required to survive economic uncertainties (Sousa & Rocha, 2019). Knowledge management systems enable organizations to anticipate and identify challenges promptly and offer quick responses though innovation.

Various reasons have pushed companies to invest in knowledge management frameworks. These include a merger or an acquisition. Companies may be forced to codify knowledge and share their expertise with the new teams joining the organization (Martins et al., 2019). Companies can also be pushed to implement knowledge management systems when faced with the prospect of retiring employees. Such companies are driven by the desire to retain the knowledge that would otherwise be lost upon the employees’ retirement (Abualoush et al., 2018). An upcoming recruitment drive can also push organizations to initiate knowledge management frameworks. Here, companies will be motivated by the need to have a knowledge bank that will assist in training and equipping the new workforce.

Conclusion

Knowledge management is a framework that allows organizations to define, structure, share and store information that is pertinent to their operational integrity. It is implemented to improve organizational efficiency and decision-making ability, hence improve profitability (Oliva & Kotabe, 2019). A typical framework involves four components, namely people, content, processes and strategies. Each of these components plays a critical role towards the success of the knowledge management system. People spearhead implementation initiatives, while processes involve the specific activities undertaken to guarantee successful implementation. Content encompasses information sources and the supportive framework, while the strategy is a clear roadmap that guides implementation initiatives (Abualoush et al., 2018). Some of the noteworthy benefits derived from implementing a knowledge management system include increased efficiency at the workplace and enhanced decision-making capabilities. It also increases collaboration and grows organizational knowledge reserves. Most significantly, knowledge management can reduce employee turnover by emphasizing on training and innovation.

Continue your journey with our comprehensive guide to Strategic Information Systems Management.

References

Abualoush, S., Masa’deh, R., Bataineh, K., & Alrowwad, A. (2018). The role of knowledge

management process and intellectual capital as intermediary variables between knowledge management infrastructure and organization performance. Interdisciplinary Journal of Information, Knowledge, and Management, 13, 279-309.

Abubakar, A. M., Elrehail, H., Alatailat, M. A., & Elçi, A. (2019). Knowledge management,

decision-making style and organizational performance. Journal of Innovation & Knowledge, 4(2), 104-114.

Ferreira, J., Mueller, J., & Papa, A. (2018). Strategic knowledge management: theory,

practice and future challenges. Journal of Knowledge Management.

Knowledge management in the context of sustainability: Literature review and opportunities for future research. Journal of cleaner production, 229, 489-500.

tools in startups. Journal of knowledge management.

Santoro, G., Vrontis, D., Thrassou, A., & Dezi, L. (2018). The Internet of Things: Building a

knowledge management system for open innovation and knowledge management capacity. Technological forecasting and social change, 136, 347-354.

Sousa, M. J., & Rocha, Á. (2019). Strategic knowledge management in the digital age: JBR

special issue editorial.