Sunday, June 23, 2019

Knowledge as the Business Consciousness and Intangible Asset of the Organization

An essential role for Knowledge Management is the need to enable knowledge flow, connect ideas but also people, and crucially management.

Knowledge is power; knowledge is more intangible, complex and dynamic compared to the physical asset. Due to the exponential growth of information, the multitude of information format, and risk/compliance concerns; managing knowledge becomes more challenging but critical for running a smart business. Knowledge Management should take a holistic approach by thinking knowledge as the business consciousness and treating knowledge as an intangible asset of the organization.

Knowledge as an intangible resource and invaluable asset need to be managed systematically: Fundamentally, knowledge is the product of the human mind, the power of knowledge can be released only when it’s used to create value. Raw information from machines needs to be processed into knowledge assimilated by people. Knowledge can be converted into tangible content and utilized to produce measurable progress in the business. There is false information, knowledge becomes outdated sooner than you think. Thus, knowledge cannot be managed like other hard assets. Especially nowadays, organizations become over-complex complex and interdependent, more attention needs to be placed on the conditions that allow knowledge to flow and generate business value rather than try to control it; like it’s a stuff that can benefit from the type of intervention. Unfortunately, many organizations still take a very reactive attitude to manage knowledge. They have some unrealistic expectation that knowledge, ideas or business solutions will easily transfer and that piece of the jigsaw will fit snugly into somewhere else without putting a lot of effort. In a less complex situation, it might work. With VUCA digital new normal, organizations today have to take an integral and holistic knowledge management approach to deal with knowledge transferring and keeping the knowledge fresh in a way that fits the strategy of the business the best.

Knowledge Management as the business consciousness directly impacts the organizational culture: Knowledge Management is a lot about diplomacy, engaging and persuading people to take part so that it can flow frictionlessly to enforce cross-functional collaboration and foster digital fluency. The problem is that knowledge doesn’t always inform you true understanding, and knowledge is not an isolated fact, it must keep flowing and refreshed to generate the value. You need to not only assimilate the existing knowledge, more importantly, you also have to keep updating knowledge, create new knowledge and become the knowledge value creator to benefit your organization and our modern society. Thus, Knowledge Management is not just a technological problem, but a business and human problem. The maturity level of Knowledge Management depends on how high and how fast the organization can climb “Knowledge Pyramid” or “Knowledge Hierarchy” smoothly by managing a healthy information-knowledge-insight-wisdom cycle to build a high-intelligent organization. In practice, Knowledge Management needs to be well embedded in key business processes to shape a culture of learning, improve decision effectiveness and enforce workforce intelligence.

Knowledge management is the management with knowledge as a focus and technology as a critical enabler: Knowledge is information which has the potential to generate business value. Knowledge Management involves the use of technologies and processes with the aim of optimizing the value that is generated. Information Technology is a powerful tool (hardware and software) that are used to enable Knowledge Management for generating business value. In fact, leapfrog advancement in Knowledge Management is tiered to the advancement in technologies and how they are used. Knowledge has a broader scope and deep impact on business success. Think of the large volumes of information captured with the varying areas of the enterprise (Marketing, Sales, Product, Support, Legal, Finance, HR, etc.); think of information and knowledge flowing to the right people to make right decisions timely, etc. Knowledge informs us as to what choices are available. Part of taking knowledge seriously as a corporate asset involves assigning responsibility for knowledge within the organization, both maintaining and improving knowledge flow. Knowledge Management is the management with knowledge as a focus. Look at the organizational structure to figure out where in the organization the requested expertise might be sitting. Understanding is the key to all doors. Wisdom tells you which doors to enter, and which ones NOT to enter.

An essential role for Knowledge Management is the need to enable knowledge flow, connect ideas but also people, and crucially management. Knowledge Management is the means to end. Because at the end of the day, what you expect is companies that are capable of mobilizing collective information, knowledge, ideas, experiences, capacities to develop business competency and learning plasticity for adapting to the ever-changing environment and anticipating in business transformation proactively.


Great article, thanks for sharing this valuable information
business knowledge portal

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