5.1 Knowledge Management: Definition, Changing Scenario and Driving Forces in Knowledge Management.

BLIS-201: Information and Communication.

1. Introduction:

Knowledge is a fundamental concept that lies at the core of library services and activities. Libraries have long been recognized as vital institutions for the acquisition, organization, preservation, and dissemination of knowledge. From the earliest libraries in ancient civilizations to the modern digital age, libraries have played a crucial role in facilitating access to information and promoting learning within communities.
Libraries serve as gateways to knowledge, offering a vast array of resources in various formats, including books, journals, databases, audiovisual materials, and digital content. They actively engage in knowledge management practices to ensure that information is not only collected but also organized, preserved, and made accessible to users. Libraries act as custodians of intellectual and cultural heritage, safeguarding knowledge for present and future generations. One of the primary functions of libraries is to support knowledge creation. Through research services, libraries provide access to scholarly literature and resources, enabling users to explore new ideas, advance understanding, and contribute to the body of knowledge. Libraries also foster a culture of inquiry and critical thinking by offering spaces for study, collaboration, and intellectual discourse.
In the realm of knowledge organization, libraries employ classification systems, cataloging standards, and metadata schemes to organize and describe information resources. This structured organization facilitates efficient retrieval and navigation of knowledge, enabling users to locate relevant materials within library collections. By creating robust and user-friendly search interfaces, libraries empower individuals to explore and access information with ease.
Libraries are not merely repositories of knowledge; they are active participants in knowledge dissemination. Librarians curate collections, develop specialized subject guides, and offer reference services to assist users in finding the information they seek. Libraries also embrace technological advancements, embracing digital libraries, online databases, and electronic journals to extend the reach of knowledge beyond physical boundaries.
Furthermore, libraries play a pivotal role in knowledge preservation. They undertake preservation initiatives to safeguard fragile and rare materials, ensuring their long-term survival. Through digitization projects, libraries convert analog resources into digital formats, making them more accessible and resilient against physical deterioration. By preserving knowledge, libraries contribute to the collective memory and cultural heritage of societies.
Libraries are not confined to traditional roles but also serve as dynamic centers of knowledge exchange and lifelong learning. They host workshops, lectures, and community events to foster intellectual engagement and promote information literacy skills. Libraries provide opportunities for individuals to enhance their knowledge, acquire new skills, and adapt to the evolving information landscape.

2. Knowledge: Definition

A precise, universally accepted definition of knowledge applicable in all contexts is nearly impossible to attain. Scholars studying knowledge as a resource, philosophical concept, or social wealth have provided their own definitions based on their areas of research. According to the Random House Dictionary (RHD), "knowledge" can be understood as follows:

• Familiarity with facts or principles obtained through study or investigation, general erudition.
• Familiarity or conversance with a particular subject or field of learning.
• Acquaintance or familiarity gained through observation, experience, or reports, such as knowledge of human nature.
• The state of knowing, having a clear and certain perception of facts or truth.
• Awareness of a fact or circumstance.
• Information that is known or may be known.
• The body of truths or facts accumulated by humanity over time, like mankind's knowledge of the moon.

Synonyms for "knowledge" provided in the RHD include enlightenment, information, understanding, discernment, comprehension, judgment, wisdom, lore, and science.
Another perspective on defining knowledge considers the word's origins in the Greek term "gnosis". A related word is "recognize". We know what we recognize, meaning we mentally process our experiences, shaping and giving them identifiable mental forms. By doing so, we recognize experiences and transform them into knowledge. This approach intersects with the meanings of knowledge given in the RHD.
Daniel Bell, a Professor of Sociology at Harvard University, presents a comprehensive definition of knowledge as the driving force of the Post-industrial Society: "Knowledge is an organized set of factual statements or ideas that present reasoned judgments or experimental results. It is transmitted to others through various communication media in a systematic form. Knowledge comprises new judgments (research and scholarship) or the presentation of existing judgments found in textbooks, teaching and learning materials, and collected library and archival materials".
Alvin Toffler, the renowned author of "Future Shock", "Third Wave", and "Power Shift", offers another perspective on knowledge, including data, information, images, attitudes, values, and other symbolic products of society, regardless of their accuracy. In the emerging field of Knowledge Management, Davenport defines knowledge as follows:
"Knowledge is a fluid blend of framed experience, values, contextual information, and expert insights that provide a framework for evaluating and incorporating new experiences and information. It originates and is applied within the minds of individuals. Within organizations, knowledge often becomes embedded not only in documents or repositories but also in organizational routines, processes, practices, and norms."
Considering these different approaches to defining knowledge, we can arrive at a working definition for the purposes of our discussion in this unit:
Knowledge is a highly organized intellectual product of human beings, encompassing personal experiences, skills, an understanding of various contexts in which we operate, and the assimilation and recording of this knowledge in a form that can be communicated to others. The communication of recorded experiences, data, and information facilitates further growth.
We may also say that "Knowledge is the understanding and awareness gained through learning, experience, and information, enabling us to comprehend and navigate the world around us."

3. Knowledge: Nature and Characteristics

The concept of knowledge has been defined as a collection of organized and structured ideas and concepts that have been validated by peer groups. When discussing knowledge, it is understood that it encompasses various subjects, each with its own parameters and opportunities for independent study. However, in recent times, the realm of knowledge has expanded to include a multitude of subjects that are increasingly multidisciplinary, interconnected, and moving in multidimensional ways. Furthermore, it is widely acknowledged that our current knowledge base extends beyond the traditional domains of Natural Sciences, Social Sciences, and Humanities. It encompasses a nation's strategic concepts, its foreign intelligence, its capabilities, and its cultural and ideological influence on the world. Consequently, the control of knowledge has become the focal point of a global power struggle, as it is considered the most potent weapon.
The utilization of knowledge is fundamental to its value. Merely stockpiling knowledge in any form may hold little significance if it is not properly utilized. Moreover, knowledge can be employed for the betterment or detriment of living beings. For instance, destructive weapons like atomic weapons are the result of intense research conducted ostensibly for a nation's security. However, if used indiscriminately, such weapons could lead to the complete annihilation of all living beings.
Outlined below are some important characteristics of knowledge:

1. Infinite: Knowledge is infinite, with no inherent limits or boundaries.
2. Dynamic and Ever-Expanding: Knowledge is dynamic in nature, continuously evolving and expanding through ongoing discoveries, developments, and insights.
3. Provisional Nature: No discipline can claim to have reached a final or definitive state. Knowledge within various disciplines is, at best, provisional and subject to criticism, correction, contradiction, change, or modification.
4. Transience of Individual Knowledge: Although a gifted individual may acquire extensive knowledge, profound wisdom, and spiritual insights during their lifetime, these assets are lost upon their demise, except for what they have recorded or shared with others.
5. Knowledge Sharing: Sharing knowledge with others does not diminish the knowledge possessed by the individual. Rather, it enables the dissemination and potential enrichment of knowledge.
6. Obsolescence: Knowledge has a tendency to become obsolete over time due to advancements, paradigm shifts, and new discoveries. Therefore, continuous learning and updating of knowledge are necessary to stay relevant.

4. Types of Knowledge

It is worth noting that there are various perspectives on knowledge in the literature, and several different types have been discussed (Teece, 1998). From the standpoint of knowledge management, it is beneficial to identify and categorize these types as it can help determine which categories are more manageable than others.
One typology of knowledge includes "core", "advanced", and "innovative" knowledge. Core knowledge represents the essential level of knowledge required for day-to-day operations. Advanced knowledge allows a firm to maintain competitiveness, while innovative knowledge empowers a firm to lead within its industry and outshine its competitors.
Knowledge can also be categorized as "explicit" and "tacit" knowledge. Explicit knowledge is expressed in words, numbers, and shared in the form of data, scientific formulae, specifications, manuals, and similar forms. It can be easily transmitted between individuals in a formal and systematic manner. Tacit knowledge, on the other hand, is highly personal and challenging to formalize, making it difficult to communicate or share with others. Tacit knowledge encompasses subjective insights, intuition, experience, and hunches. It is deeply rooted in an individual's actions, experiences, ideals, values, and emotions. Tacitness can be seen as a variable, with the degree of tacitness depending on the extent to which knowledge can be codified and abstracted. Knowledge may transition between tacit and explicit over time, although some knowledge will always remain tacit. Codification refers to the extent to which knowledge is fully documented or expressed in writing during transfer between individuals. The complexity of knowledge increases as its codification level decreases.

5. Knowledge Management

The discipline of management, with its own theories and normative principles, developed during the 20th century. However, the practice of management has been in existence for centuries. The emergence of managers as a distinct class of professionals can be traced back to the formation of joint stock companies in Europe during the 15th and 16th centuries. These managers were necessary to organize and oversee expeditions, explorations, and the growing trade with distant countries. Managers also played a crucial role in facilitating smooth interactions between workers and investors/shareholders within enterprises.
Over several decades of managing companies, factories, and various corporate entities, common practices were identified, and guiding principles were formulated. These normative principles formed the basis for management theories applicable to a wide range of management practices. Periodicals and dedicated publications on the subject of management, as well as education and research programs, associations, and institutions focused on management, were established, solidifying management as a distinct discipline. Sub-branches and specializations within management, such as financial management, human resources management, services management, public relations management, marketing and sales management, technology management, and now Knowledge Management (KM), also emerged.
The interest in Knowledge Management (KM) has been steadily growing over the past few years, driven by the understanding that knowledge has become increasingly critical for the success of individual firms. KPMG (1998) emphasizes this shift, stating that we are currently in an era where the conventional factors of economic power, such as capital, land, plant, and labor, no longer solely determine business success. Instead, a growing number of organizations rely on the creation, utilization, and dissemination of competencies rooted in knowledge.
For information professionals, understanding Knowledge Management is important for two reasons.
Firstly, it enables them to design and develop information systems, products, and services that support KM practices within the organizations they serve.
Secondly, it allows them to effectively apply KM principles in managing the information resources for which they are responsible. It should be noted that learners are already familiar with concepts such as the knowledge economy and knowledge society, along with their characteristics.

6. What is Knowledge Management?

Just as there exist multiple definitions of knowledge, the same is true for knowledge management. Currently, there is no universally accepted approach to managing knowledge, although several distinct and sometimes conflicting concepts are being proposed. According to Malhotra (1998), academic perspectives on knowledge and management vary among psychologists, technologists, and organization theorists. On the other hand, the trade press or practitioners tend to follow either a techno-centric approach, focusing on how IT systems facilitate knowledge management, or a human-resource oriented approach, which considers cultural factors relevant to knowledge management. However, a simple way to define Knowledge Management is as follows: "KM is the process of organizing and sharing the diverse forms of business information created within an organization. This may include managing enterprise document libraries, discussion databases, Intranet websites, and other types of knowledge bases. KM involves the application of enterprise portals to organize, manage, and share the various forms of business information created by individuals and teams in an organization."
KM within the context of an enterprise or organization, such as a company, research center, educational institution, project, or any other corporate entity. KM, in general, aims to unlock and leverage the knowledge of individuals so that it becomes an organizational resource independent of specific individuals. Many authors approach KM from an information systems perspective, believing that KM systems can capture and store workers' knowledge, making it accessible to others through a searchable application. From this perspective, KM should enable an organization to effectively store, manage, retrieve, and expand its intellectual properties.
The repository view of KM emphasizes the collection, provision, and filtering of explicit knowledge since information held in a repository can be easily transferred and shared. However, relying solely on de-contextualized information is neither easy nor appropriate. Knowledge managers often require access to human experts who possess tacit knowledge. This aspect of KM, known as "expert sharing," recognizes the human dimensions—cognitive, social, cultural, and organizational—as well as information storage and retrieval. Instead of focusing solely on the management level of an organization, expert sharing emphasizes the self-organized activities of the organization's members (Ackerman, Pipek, and Wulf).
Knowledge management is the systematic process of creating, organizing, sharing, and applying knowledge within an organization to enhance decision-making, innovation, and overall effectiveness.

7. Difference between Information Management and Knowledge Management

Comparison of Information Management and Knowledge Management along with their differences:


Differences:

1. Focus: Information Management is primarily concerned with collecting, storing, organizing, and disseminating data, whereas Knowledge Management concentrates on capturing, sharing, and applying an organization's knowledge to enhance learning and decision-making.
2. Data Types: Information Management deals with structured and unstructured data such as documents, databases, and records. In contrast, Knowledge Management deals with both explicit knowledge (tangible and codified) and tacit knowledge (personal insights, experiences, expertise) possessed by individuals.
3. Purpose: Information Management aims to provide data for operational processes and decision-making based on the available information. On the other hand, Knowledge Management aims to facilitate learning, innovation, and tapping into the collective wisdom of an organization to make informed decisions.
4. Management Approach: Information Management focuses on processing and organizing data efficiently, ensuring it is accessible to those who need it. Knowledge Management, however, focuses on capturing, organizing, and disseminating knowledge effectively, making it available for reuse and learning.
5. Decision Support: While Information Management can aid in decision-making based on available data and trends, Knowledge Management goes beyond that by supporting decision-making through collective insights, expertise, and lessons learned.
6. Examples: Information Management includes systems like database management systems, data warehouses, and document management systems. In contrast, Knowledge Management relies on tools such as intranets, knowledge bases, knowledge-sharing platforms, and communities of practice to facilitate knowledge exchange and collaboration.
7. Key Differentiators: The key differentiator lies in their respective emphases - Information Management primarily focuses on data organization and accessibility, while Knowledge Management emphasizes knowledge creation, sharing, and application to foster learning and innovation.

8. Knowledge Management: Historical Perspective

Knowledge Management (KM) is a field that emerged in the late 20th century as a response to the growing recognition of the value and importance of knowledge within organizations. It focuses on capturing, organizing, storing, sharing, and utilizing knowledge to enhance productivity, innovation, decision-making, and overall organizational performance.
The origins of Knowledge Management can be traced back to various disciplines and practices that have contributed to its development over time. Here is a brief history of the evolution of Knowledge Management:

1. Early Influences (1960s-1980s): The foundations of Knowledge Management can be seen in several areas during this period:
- Information Science: The field of Information Science explored the management and organization of information resources, emphasizing the importance of effective information retrieval and utilization.
- Organizational Learning: Scholars such as Chris Argyris and Donald Schön highlighted the significance of organizational learning, emphasizing the need to capture and share knowledge to improve organizational performance.
- Artificial Intelligence (AI): The development of AI technologies, such as expert systems and knowledge-based systems, sparked interest in capturing and codifying human expertise and knowledge for practical applications.
2. Knowledge Management as a Discipline (1990s): The term "Knowledge Management" gained prominence in the 1990s as a distinct discipline. Key events during this period include:
- Nonaka and Takeuchi's SECI Model: In their book "The Knowledge-Creating Company" (1995), Nonaka and Takeuchi introduced the SECI model, which emphasized the conversion of tacit and explicit knowledge within organizations.
- Skandia Navigator: The Swedish financial services company Skandia developed the Skandia Navigator, a tool for measuring and managing intangible assets, including knowledge. It became one of the early frameworks used in Knowledge Management.
- Consultant Contributions: Consulting firms, such as McKinsey and Company, started incorporating Knowledge Management practices into their offerings, raising awareness of its potential benefits in organizational settings.
3. Knowledge Management in Practice (2000s): During the early 2000s, Knowledge Management gained broader recognition, with organizations actively implementing KM strategies and initiatives. Notable developments include:
- Technology Enablers: The advancement of information and communication technologies, particularly the growth of the internet, intranets, and collaborative tools, provided new avenues for knowledge sharing and collaboration.
- Communities of Practice: The concept of communities of practice gained prominence as a means to foster knowledge sharing, collaboration, and learning among individuals with shared interests and expertise.
- Knowledge Management Standards: Organizations, such as the International Organization for Standardization (ISO), developed standards and frameworks, including ISO 9001 and ISO 30401, to guide the implementation of Knowledge Management practices.
4. Contemporary Trends: In recent years, Knowledge Management has continued to evolve in response to technological advancements, changing organizational structures, and the increasing emphasis on knowledge-driven economies. Some notable trends include:
- Social Knowledge Management: The rise of social media and enterprise social networks has facilitated informal knowledge sharing and collaboration among employees, enabling the emergence of social knowledge management approaches.
- Data Analytics and AI: Organizations are increasingly leveraging data analytics, machine learning, and artificial intelligence techniques to extract insights from large volumes of structured and unstructured data, leading to advancements in knowledge discovery and decision support.
- Knowledge Sharing Culture: Organizations are recognizing the importance of fostering a knowledge-sharing culture, promoting learning and collaboration as integral parts of their operations.
- Knowledge Management in Virtual Teams: The proliferation of remote work and virtual teams has presented new challenges and opportunities for managing knowledge across geographically dispersed teams, requiring innovative approaches to virtual collaboration and knowledge sharing.

Overall, Knowledge Management has evolved from a theoretical concept to a practical discipline, driven by the increasing recognition of knowledge as a valuable organizational asset. Its history showcases the ongoing efforts to leverage knowledge effectively to gain a competitive advantage, foster innovation, and drive organizational success.

9. Knowledge Management Components

Knowledge Management (KM) comprises four essential components that are crucial for building a successful and sustainable program within an organization:

1. People: Engaged individuals play a vital role in KM. Senior leaders should provide sponsorship and insight, while cross-functional stakeholders guide implementation. As the program evolves, a core KM team, champions, and facilitators are necessary to foster a culture of knowledge sharing.
2. Process: Strong KM processes ensure seamless knowledge flow within the organization. This involves a seven-step cycle, from creating new knowledge to using it for problem-solving and decision-making. Integrating these steps into existing business processes enhances efficiency and effectiveness.
3. Content/IT: Knowledge content, ranging from best practices to informal tips, is valuable when properly organized and accessible. IT infrastructures support the creation, storage, and retrieval of knowledge. Effective KM involves workflows for content creation and vetting, taxonomies for organization, and technology tools to connect people with relevant content.
4. Strategy: A clear and business-relevant strategy is fundamental for KM success. The strategy should include a compelling business case, demonstrating how KM addresses critical knowledge needs, the required tools and roles, a budget, and the expected impact on the organization's return on investment (ROI). Without a well-defined strategy, even the best technology and team efforts may be ineffective.

10. Knowledge Management from LIS perspective

In Library and Information Science (LIS), knowledge management refers to the systematic process of creating, organizing, capturing, storing, retrieving, and disseminating knowledge within an organization or information environment. It involves the management of both explicit knowledge (formal, codified information) and tacit knowledge (personal expertise, insights, and experiences). Knowledge management aims to enhance organizational performance, promote innovation, facilitate decision-making, and foster collaboration and learning among individuals and groups.
Knowledge management in LIS encompasses various activities and processes that contribute to the effective management and utilization of information and knowledge resources. Here are some key components of knowledge management from a LIS perspective:

1. Knowledge Creation: This involves generating new knowledge through research, analysis, interpretation, and synthesis of information. Libraries and information centers often play a crucial role in facilitating knowledge creation by providing access to diverse resources, supporting research activities, and fostering a culture of inquiry and exploration.
2. Knowledge Organization: Once knowledge is created, it needs to be organized and structured to enable effective retrieval and dissemination. This involves activities such as cataloging, classification, indexing, metadata creation, and ontologies. Libraries traditionally employ standardized systems like Dewey Decimal Classification (DDC) or Library of Congress Classification (LCC) to organize knowledge resources, while digital libraries and information systems utilize metadata standards like Dublin Core or MARC (Machine-Readable Cataloging).
3. Knowledge Capture: Tacit knowledge, which resides in individuals' minds, needs to be captured and documented for wider access and utilization. Techniques like interviews, observations, expert systems, and communities of practice can be employed to extract and record tacit knowledge. For instance, librarians may conduct oral history interviews to capture the knowledge and experiences of prominent community members.
4. Knowledge Storage and Retrieval: Storing knowledge in a structured and accessible manner is essential for efficient retrieval. Libraries and information systems employ various storage mechanisms, such as databases, repositories, content management systems, and digital archives. Advanced techniques like full-text indexing, information retrieval algorithms, and semantic search are employed to enable efficient and accurate knowledge retrieval.
5. Knowledge Sharing and Dissemination: Knowledge management emphasizes the importance of sharing and disseminating knowledge throughout an organization or information community. This can be achieved through various channels such as publications, reports, newsletters, intranets, wikis, blogs, social media, and collaborative platforms. Libraries play a crucial role in facilitating knowledge sharing by providing platforms for information exchange, hosting events and workshops, and promoting open access initiatives.
6. Knowledge Preservation: Libraries have a vital role in preserving knowledge for future generations. This includes the preservation of physical materials through proper storage and conservation techniques, as well as digital preservation to ensure long-term access to born-digital and digitized resources. Preservation strategies involve activities such as digitization, metadata creation, migration to new formats, and disaster recovery planning.
7. Knowledge Evaluation and Continuous Improvement: Knowledge management involves ongoing assessment and evaluation to measure the effectiveness of knowledge processes and identify areas for improvement. This can be achieved through user surveys, usage statistics analysis, feedback mechanisms, and performance indicators. The insights gained from evaluation can inform decision-making, resource allocation, and the implementation of best practices.
8. Knowledge Transfer: Knowledge transfer involves facilitating the exchange of knowledge from one individual or group to another. Libraries can act as intermediaries in knowledge transfer by connecting individuals with relevant expertise, facilitating mentorship programs, organizing workshops and training sessions, and leveraging technology to enable virtual collaboration and learning.
9. Knowledge Discovery and Data Mining: Libraries and information centers often possess vast amounts of data and information. Knowledge discovery and data mining techniques can be applied to uncover hidden patterns, trends, and insights from these data sources. This process involves data preprocessing, data analysis, and interpretation, which can contribute to knowledge creation, decision-making, and the development of new services.
10. Knowledge Management Systems: Knowledge management systems refer to the technological tools and platforms used to support knowledge management activities. These systems can include document management systems, digital repositories, collaborative platforms, intranets, content management systems, and social networking tools. Libraries and information centers leverage these systems to facilitate knowledge creation, organization, storage, retrieval, sharing, and collaboration.
11. Intellectual Property and Copyright: Knowledge management in LIS involves considering legal and ethical aspects, such as intellectual property rights and copyright. Libraries play a critical role in ensuring compliance with copyright laws and licensing agreements, managing digital rights, and promoting open access initiatives. They provide guidance and assistance to users in navigating copyright restrictions and fair use policies, thus enabling responsible knowledge sharing and dissemination.
12. Knowledge Management Culture: Establishing a knowledge management culture is essential for the success of knowledge management initiatives. Libraries can foster a culture that values continuous learning, knowledge sharing, and collaboration by promoting a supportive and inclusive environment, encouraging participation in professional development activities, recognizing and rewarding knowledge sharing efforts, and integrating knowledge management principles into organizational policies and strategies.
13. Knowledge Management and User Services: Knowledge management practices can greatly enhance user services in libraries. By effectively organizing and retrieving knowledge resources, libraries can provide timely and accurate information to users. Libraries can also leverage user feedback and insights to improve their services and tailor their offerings to meet the evolving needs of their users.
14. Knowledge Management and Decision Support: Knowledge management can support decision-making processes within libraries and information organizations. By capturing, organizing, and analyzing knowledge and information, libraries can provide decision-makers with valuable insights and evidence to inform strategic planning, resource allocation, and policy development.

Overall, knowledge management in Library and Information Science encompasses a wide range of strategies, processes, and technologies aimed at harnessing, organizing, and leveraging knowledge to achieve organizational goals, support user needs, and contribute to the advancement of knowledge in society. Changing Scenario and Driving Forces. In recent decades, the economies of industrialized societies have undergone a transformation from industrial to information-based, and further to knowledge-based economies. In this knowledge-based economy, the generation, access, retrieval, processing, communication, application, and utilization of information and knowledge are considered crucial factors in measuring a nation's socio-economic development. Individuals and corporations that possess or have access to knowledge resources become powerful entities in society. The following key observations can be made:

1. Shift to Information and Knowledge Economy: There has been a global shift from industrial economies to information economies and further to knowledge economies, where knowledge and information-intensive products and services have experienced rapid growth.
2. Increased Knowledge Utilization: Knowledge is now being extensively utilized not only in the production of traditional products but also in various sectors of the economy. Manual production workers are being substituted or replaced by information and knowledge workers.
3. Emergence of Knowledge-Intensive Organizations: New types of organizations have emerged, primarily focused on the production, processing, and distribution of knowledge-based products. These organizations play a significant role in the knowledge economy.
4. Impact of ICTs: The rapidly evolving information and communication technologies (ICTs) have had a significant impact on enterprises. To sustain and enhance their competitive advantage in a competitive environment, enterprises require expertise in Knowledge Management (KM). The knowledge manager, at all levels, should possess the special capabilities to create, mobilize, and communicate knowledge within and outside the organization.
5. Benefits of KM: Implementing KM within an organization helps create, share, and effectively use knowledge, leading to fewer mistakes, reduced redundancy, quicker problem-solving, improved decision-making, lower research and development costs, increased worker independence, enhanced customer relations, and improved services.
6. Richness versus Reach: The advent of the Internet has transformed communication dynamics. The traditional choice between richness and reach in communication has been replaced by the possibility of achieving both simultaneously. Organizations need to rethink how they share information and knowledge within their structures to harness the benefits of knowledge.
7. Crucial and Value-Adding Knowledge: Investing in knowledge requires identifying relevant and crucial knowledge for the organization and recognizing knowledge that adds value. Crucial knowledge includes dynamic knowledge necessary for operating effectively within the industry. It may be obtained through consultation with experts and their problem-solving abilities.
8. KM as a Strategic Perspective: KM is often viewed from an information systems perspective, with a focus on capturing and storing workers' knowledge in searchable applications. However, effective KM goes beyond data collection and storage. It ensures that individuals at all levels of the organization have access to the information they need to accomplish their tasks while aligning with the organization's overall goals.
9. Technological Resources and Human Input: Successful KM implementation requires a combination of advanced technological resources and human response and decision-making. It involves revaluing work and changing the way people perform their tasks, ultimately leading to a shift in work culture and redefining leadership.

To successfully implement a KM system, it is crucial for all individuals involved and affected to understand the reasons for undertaking such an initiative, how it will impact their work, and why organizational change is necessary.

11. Changing Scenario and Driving Forces in Knowledge Management

In recent decades, there has been a significant transformation in the economy of industrialized societies. It has progressed from an industrial economy to an information economy and further to a knowledge-based economy. This shift is characterized by the increasing importance placed on activities related to the generation, access, retrieval, processing, communication, application, and utilization of information and knowledge. The level of engagement in these activities is now seen as a crucial parameter for measuring the socio-economic development of nations.
In this new economy, individuals and corporations that possess or have access to knowledge resources and the means to exploit them have become more influential and powerful entities in society. Here are some key observations regarding this transition:

1. Worldwide Shift to Information Economy and Knowledge Economy: The global economy has experienced a transition from traditional industrial production to an economy driven by information and knowledge. This shift acknowledges the growing significance of information and knowledge as key economic resources.
2. Rapid Growth in Knowledge and Information-Intensive Products and Services: There has been a substantial increase in the production and consumption of goods and services that rely heavily on information and knowledge. This includes areas such as software development, digital content creation, data analysis, consulting services, and intellectual property.
3. Intensification of Knowledge Utilization in Traditional Product Production: Knowledge and information are not limited to specialized sectors but have also become crucial in the production of traditional products. Industrial processes now incorporate advanced technologies, data-driven decision-making, and specialized knowledge to improve efficiency and quality.
4. Substitution of Manual Production Workers with Information/Knowledge Workers: As the economy becomes more knowledge-intensive, there has been a shift in the composition of the workforce. Manual production workers are being substituted or replaced by workers who possess skills in information management, analysis, problem-solving, and innovation.
5. Emergence of Knowledge/Information-Intensive Organizations: With the rise of the knowledge-based economy, new types of organizations have emerged. These entities are primarily focused on the production, processing, and distribution of knowledge-based products and services. Examples include research institutions, think tanks, knowledge consulting firms, and intellectual property management companies.
6. Significant Impact of ICTs (Information and Communication Technologies): The rapid development and adoption of information and communication technologies (ICTs) have had a profound impact on enterprises. ICTs enable efficient and widespread access to information, facilitate communication and collaboration, and enhance the storage and processing of knowledge. Organizations that effectively leverage these technologies gain a competitive advantage in the knowledge economy.

In the context of the transition to a knowledge-based economy, several additional points can be added:

1. Identification of Crucial and Value-Adding Knowledge: In the knowledge-based economy, organizations need to determine what knowledge is crucial and adds value to their operations. This involves understanding the dynamic knowledge required to operate effectively within the industry. Consulting experts and leveraging their tacit knowledge, which manifests as problem-solving behavior, can provide valuable insights. Organizations must prioritize the availability, development, and retention of experts who possess problem-solving capabilities as part of their human resources management.
2. Knowledge Management as More Than Information Systems: While much of the literature views knowledge management (KM) from an information systems perspective, effective KM goes beyond simply capturing and storing workers' knowledge in databases or websites. It involves ensuring that individuals at all levels of the organization have access to the information they need to accomplish their tasks while contributing to the organization's overall goals.
3. Integration of Technological Resources and Human Decision-Making: Successful KM requires the combination of advanced technological resources with human response and decision-making. It recognizes that technology alone cannot fully address the complexities of managing knowledge. KM initiatives should leverage technology to support knowledge capture, storage, and dissemination, while also valuing and incorporating human expertise, insights, and judgment.
4. Shifting Work Processes and Redefining Leadership: Implementing a KM system involves revaluing work and transforming how people perform their tasks. The outcome is a shift in work processes and a redefinition of leadership roles. KM initiatives encourage collaboration, knowledge sharing, and continuous learning. This transformation affects the way people work and how leadership is defined within the organization.
5. Understanding the Need for Change: To successfully implement a KM system, it is crucial that individuals involved and affected by the initiative understand why it is necessary and how it will impact their work. Clear communication is essential to ensure buy-in and alignment with the organization's objectives. The rationale behind implementing KM should be articulated, including how it will improve efficiency, decision-making, and overall organizational performance.

By considering these additional points, organizations can enhance their understanding of knowledge management within the context of a knowledge-based economy. They can develop effective strategies for identifying crucial knowledge, leveraging technology and human expertise, and driving organizational change to promote knowledge sharing and innovation.
Overall, the shift towards a knowledge-based economy reflects the recognition that information and knowledge have become critical drivers of socio-economic development. The ability to generate, manage, and leverage knowledge resources has become a crucial factor in determining the success and power of individuals and organizations in this new economic paradigm.