Introduction
Knowledge Management (KM) is, perhaps, one of the newest corporate practices that have taken the business world by storm. Its extensive use by enterprises all over the world has attracted a lot of research from scholars. Being the chief motivator of the contemporary practice of Business Process Outsourcing, KM has had commendable effects on organizations, making them reduce their costs substantially, and making them streamline their operations. This paper is a discussion the characteristics of KM, its benefits, as well as the best way to implement KM projects.
Relationship between data and information, and Knowledge Management (KM)
Knowledge Management refers to the process though which an organization makes productive and profitable use of its knowledge, or intellectual, resources. The use of KM as a profitability tool is a contemporary issue, and thus most of the ideas of KM have been met by a lot of criticism. Data refers to the raw and unprocessed facts, from which information is gotten.
Data is therefore not an end itself, but rather, it is a means to an end, the latter being information. Information refers to the useful and meaningful results that are produced when data is analyze. Information can thus be described as an end product of data. Knowledge refers to the state of being in possession of relevant information for solving problems (Wiig, N.D.).
Data and information are an inseparable part of Knowledge Management. In fact, they can be technically referred to as the merchandise of Knowledge management. This is due to the fact that in KM projects, the main focus is the exchange of data and information, which enables the recipients of the same carry out their functions efficiently and effectively (Wiig, N.D.).
For instance, if an organization intends to incorporate outsourcing in its operations, there will be a need for the employees of the organization to interact with the employees of the company to which some functions of the organization are being outsourced. This will ensure that the employees of the latter organization get the intricate knowledge of the data, and information of the former organization.
During the data-sharing sessions, the employees may need to get the contact lists of clients, contact lists of suppliers, email addresses of clients, past data of the former organization, just to mentioned a few. Some crucial information may also need to be exchanged. This includes ethical values, and policies of the former organization and the like.
Potential benefits of knowledge management projects
The benefits of knowledge management are multiple and entrenched. One of the benefits is that an organization saves a substantial amount of money by employing KM approaches (Leonard, and Swap, 2005). For instance, if an old employee is retiring, it will be much cheaper to let him/her share the knowledge he/she has accumulated over the years before he/she leaves the organization, than calling him/her to solve problems for the organization after retirement.
On the other hand, the outsourcing approach of knowledge management is basically motivated by cost reduction. Another advantage of KM is that it encourages employees to be innovative because it empowers them with knowledge. It is also obvious that after employees are empowered with knowledge, they give better services to the clientele of the organization.
This leads to more revenue and profits. The knowledge sharing aspect of knowledge management is a motivator to employees, and therefore, an organization that upholds knowledge management is unlikely to have high employee turnover rates (Levinson, 2007).
Achieving positive results in knowledge management projects
Among the strategies that organizations should use in order to get the best out of knowledge management is ensuring that KM projects are started in small scale in order to learn from experience without taking big risks. The KM components can be implemented on a portion of the organizational activities before its effects can be determined.
Another important thing to note is the necessity of mainstreaming the KM project with the objectives of the organization (Bellinger, 2004). This is because with the introduction of the new ideas of KM, the organization can easily lose focus of its objectives. It is also important to sensitize the employees of the organization about the basics of KM and its necessity so that the project does not face resistance.
Conclusion
From the discussion above, knowledge management is an important business strategy that, if harnessed well, may make a difference in a business organization. It has been established that KM is founded on information and data, and that the three cannot be separated. KM makes operations cheaper, and increases both operational efficiency and effectiveness.
It motivates employees and reduces the turnover of employees in the organization, and also helps organizations realize the proverbial goal of profit maximization. However, to realize the benefits of KM, an organization must take precaution when implementing KM projects. There is need for sensitization of employees, initial implementation in small-scale, and mainstreaming of KM ideas with the objectives of the organization. Otherwise, KM can potentially have disastrous results.
Reference List
Bellinger, G. (2004). Knowledge Management – Emerging Perspectives.
Leonard, D., & Swap, W. (2005). The Knowledge Coach. HBS Working Knowledge.
Levinson, M. (2007). Knowledge Management Definition and Solutions. Web.
Wiig, K. (N.D.). On The Management of Knowledge. The Wiig Group. Web.