Importance of Knowledge Management in Recent Business

Abstract

Knowledge management is a process of creating value from the intangible assets of the company including knowledge of the employees, business processes, products, customer and supplier information systems, and other. Knowledge processes supported by knowledge infrastructures improve individual and team creativity and facilitate innovation. Like other management strategies, knowledge management initiatives are expected to make the most of the intellectual capital, enable innovation and competitiveness necessary to survive on the market, satisfy customers, and hence, create profit. There are three key aspects relevant to knowledge management strategy: people including external human factors, processes and technology. In modern just-in-time businesses, enterprise efforts are directed towards precise estimation of customer requirements and preferences. New technologies including high-speed networks, mobile telecommunications, video-conferencing, virtual reality software alter the way the organizations do their business and communicate with their customers, suppliers, and partners and also dislocated employees. They enable binding of enterprises into virtual organizations, associations or alliances with the aim to exchange information, knowledge and experience, and to respond agilely to customer requirements. All businesses have access to an extensive pool of knowledge - whether this is their understanding of customers' needs and the business environment or the skills and experience of staff. The way a business gathers shares and exploits this knowledge can be central to its ability to develop successfully. This doesn't just apply to huge multinational companies. Knowledge management can benefit everyone from a local newsagent to a manufacturing firm. This explains the basic sources of knowledge available to your business, how one can best harness and exploit this information and how to create a knowledge strategy for the business.