Knowledge Management

Knowledge management is the process of identifying information crucial for a company's proper functioning and development, then collecting, storing, and making it available to the right people so they can utilise that knowledge in their work. Therefore, knowledge management transfers information held by employees at various levels of the company into an organised database, allowing others to benefit from it.

Knowledge Management – Definition

Effective knowledge management benefits not only the company but also employees and the market. An organisation gains, among other things, the following from this process:

• reduced management costs,
• increased efficiency and creativity,
• company development.

Benefits for employees, in turn, include:

• increased competencies,
• enhanced competitiveness in the job market,
• improved work productivity and efficiency.

The market, on the other hand, gains:

• access to new information,
• a different perspective on its own company's problems,
• ideas for new tools, processes, products, or services.

Knowledge Management in Practice – Most Popular Tools

Practically every organisation has at least one element of knowledge management, even if it's not intentional. Such "unconscious management" might be, for example, placing a new employee under the wing of an experienced one to share their know-how and methods for more effective work. However, implementing this process with full awareness becomes more complex. Its aim should be to gather all industry knowledge from all employees, from interns and junior specialists to directors and CEOs, and then provide authorised individuals with access to it – in an appropriate format.

Knowledge management thus requires not only identifying information worth collecting but also defining access levels for specific data and establishing optimal communication formats (instructional videos, handbooks, training sessions, etc.).

Among the most common tools for collecting and sharing knowledge are:

• training courses,
• procedure manuals,
• internal regulations,
• internal operating instructions for machinery and software,
• presentations,
• handbooks,
• flashcards – also known as knowledge capsules,
• intranet entries,
• instructional videos,
• knowledge bases – the most extensive of all popular tools. A knowledge base can be described as an e-library storing all documented information to date, such as guides, manuals, instructions, guidelines, product technical data, regulations, FAQs (frequently asked questions), and so on. A properly maintained knowledge base, meaning one that is regularly updated and well-organised, allows employees to find answers to their questions within a maximum of a few minutes. Usually, all it takes is entering a phrase related to the problem that needs solving into the search engine (e.g., difficult client procedure) to get the necessary information.

What are the Knowledge Management Models?

The discussed process can take various forms depending on the industry a company operates in, the size and diversity of its organisational structure, or the adopted knowledge management model. In this last regard, three approaches are particularly popular: the process model, the resource model, and the Japanese model.

The Process Model of Knowledge Management

The process model of knowledge management was developed by T. Davenport and L. Prusak from IBM Consulting Group, G. Probst and S. Raub, and W. R. Bukowitz and R. L. Wilson. It is based on practical solutions and experiences. This model assumes that knowledge management is an aggregate of processes that enable the creation, dissemination, and utilisation of knowledge to achieve organisational goals. It consists of three main stages:

• Knowledge creation – through improving and developing human capital or acquiring information from external sources.
• Knowledge sharing – making collected knowledge available internally and externally to the organisation, to an appropriate extent for a given target group.
• Transforming knowledge into decisions – making strategic decisions based on acquired knowledge.

The Resource Model of Knowledge Management

The resource model of knowledge management originated from D. Leonard-Barton's concept at Harvard Business School. It is based on recognising knowledge as the company's most important asset and assumes that its source can be not only members of the organisation or its archives but also the company's environment. The effective operation of the resource knowledge management model is based on the relationship between five elements:

• acquiring knowledge from the company's environment,
• utilising new tools and technologies,
• experimentation,
• collaborative and ongoing problem-solving,
• key skills: management systems, physical and technical systems, employee knowledge and skills, and norms and values.

The Japanese Model of Knowledge Management

The Japanese model of knowledge management was developed by I. Nonaka and H. Takeuchi; its name is linked to the creators' origin. They themselves referred to it as the knowledge spiral – from the concept of a method that assumes a recurring cycle consisting of four knowledge conversion processes:

• socialisation process – converting tacit (hidden) knowledge into tacit (hidden) knowledge,
• externalisation process – converting tacit (hidden) knowledge into explicit (available) knowledge,
• combination process – converting explicit (available) knowledge into explicit (available) knowledge,
• internalisation process – converting explicit (available) knowledge into tacit (hidden) knowledge.

The Japanese model of knowledge management views knowledge not only as a collection of data and information but also adds emotions, intuitions, and values to it. The process of knowledge creation itself is undertaken by every person in the company – with a predefined role – and the concept of knowledge management also includes its creation.