November 25, 2023

How businesses can unlock true value of knowledge management

Peter Drucker in his book "Managing in an Age of Great Change" noted: "With rapid development of information technology and intensification of economic competition associated with globalization, human society has entered a knowledge-based economic era."Knowledge. strong> has become a major economic resource and dominates, perhaps even the single source of competitive advantage. How businesses can unlock true value of knowledge management
From this point of view, good knowledge management work is something that enterprises should put on agenda. But doing a good job of knowledge management is not an easy task, and it is even more difficult to bring out value of knowledge management. Then how can businesses discover true value of knowledge management? This is what we'll talk about today. Before that, let's talk about basic requirements for knowledge management and see what we need to do in knowledge management process.

Demand points for knowledge management:
  • How to fully share and apply knowledge and experience accumulated earlier?
  • How to facilitate extraction, accumulation and exchange of implicit employee experience and information about customers in main areas of activity?
  • How can shared business knowledge and experience be shared and reused across projects?
  • Company system and processes, general search, version upgrades, implementation issues?
  • How to create an environment where employees can explore culture of knowledge, collaborate and share knowledge across departments and projects?
  • How are managers' knowledge needs for decision making met?
  • How does knowledge management integrate with business systems?
  • How to use convenient and effective software for accumulation and application of knowledge?
  • The points listed above are likely to be practices or issues that need to be addressed in knowledge management process. If these problems can be solved one by one, then you may not be able to do a good job of managing knowledge. So hard. But last point: "How to use convenient and effective tools and software to promote accumulation and application of knowledge?" Isn't this a problem that Xiaoniao can help you solve. Using creation of an enterprise knowledge base can help enterprises effectively contribute to accumulation and application of knowledge. How businesses can unlock true value of knowledge management
After understanding demand points for knowledge management for enterprises, it is also necessary to distinguish between what knowledge is useful and worth managing in order to truly realize value of knowledge management.

    What knowledge is considered an asset?

    Ikujiro Nonaka, known as "pioneer of knowledge management", discussed two dimensions of knowledge management, namely knowledge category and organization form. According to theory of Ikujiro Nonaka, an enterprise can use knowledge as an asset if following two criteria are met:

  • Will this help increase profits. When this knowledge is effectively applied, it can contribute to creation of intrinsic value. Improve production efficiency and increase overall business revenue by adding products and services.
  • Does it mean wealth. On one hand, this knowledge can provide sustainable development through additional investment, on other hand, it supports payment for knowledge and can be sold as an asset.
  • The criteria for evaluating knowledge assets are not fixed. In order to deepen our understanding, we can also classify knowledge into a specific management structure to determine key content of enterprise knowledge management.

    Taxonomy of intellectual assets

    Next, we will combine Ikujiro Nonaka's theory to further discuss target content of enterprise knowledge management from two forms structural classification and functional classification. strong>.

    1. Structural classification according to place of existence of intellectual assets
  • Market Knowledge: knowledge assets acquired and accumulated by businesses through marketing activities, such as knowledge provided by customers, knowledge shared with customers and recorded customer dynamics, etc. Accumulation of such knowledge helps businesses continuously optimize products and services to adapt to a rapidly changing market.
  • Organizational knowledge: knowledge assets acquired and accumulated by members of organization, such as technical knowledge and work experience that employees of enterprise have mastered, collective knowledge that is shared within enterprise, knowledge base is created based on internal information enterprises, etc. This knowledge is related to overall productivity of knowledge and creativity of enterprise and is source and driver of continuous increase in value of knowledge assets.
  • Product Knowledge. Product-related intellectual property, such as knowledge ownership, technical know-how, etc. This knowledge is a breakthrough for enterprises to add value to products and services and is closely related to income of enterprise.
  • 2. Classifyь according to function and form of intellectual assets

    From point of view of this classification, since more attention is paid to division by content of tacit knowledge and explicit knowledge, it can better reflect ecology of knowledge in enterprise organization system.

    1. Knowledge assets based on experience (mostly tacit knowledge)

    Knowledge that exists and accumulates in form of experience, which we often refer to as experience, i.e. empirical knowledge. This knowledge usually comes from way people do business and work, from collaboration between businesses and partners, and from communication with customers. Much of this knowledge comes from internal processing and production of individuals, i. difficult to record or imitate. Thus, these knowledge assets require enterprises to create appropriate mining mechanisms to encourage employees to perform, such as creating a learning-oriented corporate culture and creating multi-channel communication methods to facilitate explicit disclosure of tacit knowledge.

    2. Conceptual knowledge assets

    Conceptual knowledge assets mainly refers to knowledge assets such as cognition, enterprise concept and symbol, such as creativity, brand, design, etc. When a brand is recognized by consumers, design, image, etc., which complement brand, are combined into a common social cognition and exert their influence. For example, Apple is one of representatives of increasing corporate efficiency by maximizing brand strength.

    3. Stereotypical knowledge assets (explicit knowledge makes up majority)

    Knowledge that exists in some form, such as internal guidelines, patents, etc. These knowledge assets are basically explicit knowledge that mostly exists in form of text and data and are knowledge assets that can be used and moved . Businesses can use appropriate tools, such as using a knowledge management system for classification and storage, and promote effective use of these knowledge assets through sharing and dissemination.

    4. Permanent knowledge assets

    Knowledge obtained through organizational system, structure and division of labor. The specific content of these knowledge assets includes knowledge elements and related operating procedures, typically internal learning systems, learning plans, etc., which play a guiding role in talent development and business advancement. The above is standard division of knowledge assets of enterprises and classification of knowledge assets existing in enterprises according to Ikujiro Nonaka's knowledge management theory. By understanding this content, you can quickly understand what knowledge needs to be managed with knowledge management and how to manage it, that is, point direction in which enterprises can realize value of knowledge management.


    Enterprise knowledge management is knowledge management as a new management idea emerging in era of knowledge economy, and it is not isolated from enterprise management system. From knowledge to action, knowledge management is by no means simple and blind, but requires complex solutions involving multiple layers. In process of advancing knowledge management, enterprises must carefully examine status quo and clarify issues before they can rationally design implementation paths and adopt solutions. making full use of them The real value of knowledge management. Moreover, in process of enterprise knowledge management, classification method of knowledge assets is not static, enterprises should consider it from perspective of dynamics and development, and adjust knowledge management strategy and plan accordingly. To provide enterprises with tools for knowledge management, this is meaning of bird's existence. Help enterprises build an effective knowledge management system, help enterprises create insurmountable competitive barriers, and stay invincible in industry wave for a long time. How businesses can unlock true value of knowledge management