The importance of knowledge dates back in the 17th century when the ancient Greeks and Egyptian who used it to solve daily human problems. In the modern business word, both practical and theoretical knowledge has a huge importance in the sustainability of business entities across the world. A firm’s capability to effectively manage knowledge can play a big part in maximizing ROI. Knowledge Management (KM) is a continuous process of capturing, developing and disseminating organizational knowledge or in other words Enterprise’s information assets which include databases, documents, policies, procedures, and previously un-captured expertise and experience in individual workers.
It has occurred a lot of times that a demise of a company that performed very well in the past happened when one or more employees leave the firm. This is due to the fact that most of the information that is passed within and outside the organization is not in computers but in people’s (staff) heads or just simply communication verbally or non-verbally. A firm operating in such a culture is more likely not to survive for a long time after the “visionaries” pass the sticks to their heirs.
There is no magic behind companies that last for decades and still being able to compete with the new entrants which are more nimble and agile but the culture of being able to utilize the internal theoretical and practical knowledge which it has gathered over the years. Some firms are failing to compete, investing in gathering knowledge outside the organization while neglecting the most valuable asset in the arm’s reach – Internal Knowledge.
ICTs are supporting the emergence of new organizational forms and working patterns that are in many ways transforming the ways in which organizations function, and especially the ways in which they inter- act and communicate. ICT tools are becoming more helpful to entities using it to effectively manage the flow of data information and knowledge across the organization posing a threat to other companies which are not ready to change their conventional beliefs by being resistant to change.
In simple words, an efficient knowledge management scheme is “Wealth”. Companies that invest in systems which ensure a sustainable flow of tacit knowledge across the departments is more likely to last centuries compared to a company which doesn’t have such capability.
Business leaders and managers are required to understand the importance of putting in place reliable knowledge management systems which can allow the employees to access reliable information via Internal Portals and Content Management / Enterprise Content Management Systems. Such endeavors can help the organization to get the value of the constant data in-flow stream in everyday’s operations.
With effective Knowledge Management approaches in place, Leaders and CEOs can bring about the ability to make reliable decisions based on the past information/ data, building learning organizations, and fostering cultural change and innovation. Unknowingly, failing to put in place such systems can make your company lose money every day.