While a small corner store and Wal-Mart may both be retail businesses, the knowledge and skill set required to operate them successfully are vastly different. The operation of Wal-Mart is not simply a “supersized” version of the small business practices used by the corner store. Unlike the corner store, Wal-Mart has to cope with different and changing regulatory demands across the regions where it operates; it has to deal with logistical issues on an international scale, and much more. Therefore at some point, to enable itself to handle the demands of its growth, Wal-Mart had to incorporate a more comprehensive understanding of the discipline of Business (with a capital B) as taught by Business schools at colleges around the world.
Similarly, the practice of knowledge management is different than the practice of Knowledge Management. People, governments, and businesses have always managed knowledge; and it has always been important to get the right information to the right people at the right time. Yet, it has only been within the past 20+ years that there been a persistent and growing emphasis on the part of big business to manage and apply knowledge more judiciously as a managed asset.
However the challenge faced by large entities in regards to managing knowledge is like that in the case of Business, i.e. the scale of the knowledge management needs of large organizations cannot be fully met by simply “supersizing” individual or small scale knowledge management activities and practices. For example, in a small group it is very easy to share, recognize, and understand what knowledge the group possesses and can use. Also, a small group is much less likely to face hierarchal, geographic and language barriers to managing its knowledge. And so, large entities have found themselves in need of an accurate set of principles that transform the ad-hoc activity of knowledge management into Knowledge Management a professional discipline suitable for addressing the knowledge demands of large organizations.
But unlike Business, Knowledge Management (KM) has not congealed into a mature and generally accepted set of principles. And so, organizations are struggling to find their own way.
Knowledge Management is not a response to so-called information overload, or the increasing quantity of information being created over the past 20 to 30 years of the computer age. Instead, the major role that computerization has played in creating the demand for Knowledge Management has been in enabling the proliferation of information. This is really an obvious point when you consider that the amount of information that had been created over the thousands of years leading up to the past few decades was already unimaginably great. So, if during the computer age not a single piece of new information was created, the existing quantity of information already amassed would easily be enough to overwhelm computer users. So the increased demand for KM cannot simply be a result of greater information creation.
Purely and simply, Knowledge Management is a reaction to an increase in competitive pressure brought about by information proliferation. Businesses only began to consider the need to better manage knowledge over the past 20+ years because it has only been during this period that more people and other entities have been enabled access to information on a scale that use to be reserved only for large entities employing lots of people. So again and finally, the issue that has driven the desire for KM is not about the amount of information available, but instead it is about who has access to available information and what they are capable of doing with the information.
Specifically, individuals and entities large and small are more enabled by greater information access to create better and more competitive offerings. For example, an individual computer user can more easily apply information found on the Internet to creating a new business that can challenge long established companies, or an existing competitor can use the advantage of greater access to information to shorten their product development cycle. The unlimited potential applications of information, couple with increasingly unlimited access to information has made our operating environment much more competitive than ever before.
In short, the current environment is one of “knowledge-based competition”. Information is simply the fuel required to create knowledge; and thus good information is a key component of Knowledge Management in a competitive environment. The objective for Knowledge Management is to create, preserve, use, and reuse knowledge faster and better than the competition. Knowledge Management should be focused on improving two critical activities:
information-to-knowledge (i2k) conversion, and
knowledge-to-product (k2p) infusion