Definition of KM:

Knowledge Management is the discipline of enabling individuals, teams and entire organizations to collectively and systematically capture, store, create, share and
apply knowledge, to better achieve their objectives.

Knowledge Management is an organizational function that concerns itself with the capture, storage, and dissemination of the knowledge that is inherent in the organization by using software or a
Processual tool to capture, store, and disseminate knowledge. The objective of knowledge management is to enhance organizational competitiveness, improve performance, the sharing of lessons learnt,
and the continuous improvement of the organizational processes. Typically, organizations have well-established tools and software to capture, store, and disseminate the learnings that accrue because of the
organizational processes.

Knowledge management is essentially about getting the right knowledge to the right person at the right time. This in itself may not seem so complex, but it implies a strong tie to corporate strategy, understanding
of where and in what forms knowledge exists, creating processes that span organizational functions, and ensuring that initiatives are accepted and supported by organizational members. Knowledge management
may also include new knowledge creation, or it may solely focus on knowledge sharing, storage, and refinement

Knowledge Management is the explicit and systematic management of vital knowledge - and its associated processes of creation, organization, diffusion, use and exploitation - in pursuit of business objectives.

There are many definitions of knowledge management. We have developed this one since it identifies some critical aspects of any successful knowledge management programme:

Explicit - Surfacing assumptions; codifying that which is known

Systematic - Leaving things to serendipity will not achieve the benefits

Vital Knowledge - You need to focus; you don't have unlimited resources

Processes - Knowledge management is a set of activities with its own tools and techniques

It is important to note that knowledge encompasses both tacit knowledge (in people's heads) and explicit knowledge (codified and expressed as information in databases, documents etc.). A good knowledge
programme will address the processes of knowledge development and transfer for both these basic forms.

Need of KM:

So, why is knowledge management useful? It is useful because it places a focus on

knowledge as an actual asset, rather than as something intangible. In so doing, it
enables the firm to better protect and exploit what it knows, and to improve and focus
its knowledge development efforts to match its needs. In other words:

It helps firms learn from past mistakes and successes.

It better exploits existing knowledge assets by re-deploying them in areas where the firm stands to gain something, e.g. using
knowledge from one department to improve or create a product in another department, modifying knowledge from a past process
to create a new solution, etc.
It promotes a long term focus on developing the right competencies and skills and removing obsolete knowledge.
It enhances the firm's ability to innovate.
It enhances the firm's ability to protect its key knowledge and competencies from being lost or copied.

Knowledge management is responsible for understanding:

What your organization knows.

Where this knowledge is located, e.g. in the mind of a specific expert, a specific department, in old files, with a specific team, etc.
In what form this knowledge is stored e.g. the minds of experts, on paper, etc.
How to best transfer this knowledge to relevant people, so as to be able to take advantage of it or to ensure that it is not lost. E.g.
setting up a mentoring relationship between experienced experts and new employees, implementing a document management
system to provide access to key explicit knowledge.
The need to methodically assess the organization's actual know-how vs the organization's needs and to act accordingly, e.g. by
hiring or firing, by promoting specific in-house knowledge creation, etc.

Drivers of knowledge management

There are a number of 'drivers', or motivations, leading to organizations undertaking a knowledge management program.

Perhaps first among these is to gain the competitive advantage that comes with improved or faster learning and new knowledge creation. Knowledge management programs may lead to greater innovation,
better customer experiences, consistency in good practices and knowledge access across a global organization, as well as many other benefits, and knowledge management programs may be driven with
these goals in mind.

Considerations driving a knowledge management program might include:

making available increased knowledge content in the development and provision of products and services

achieving shorter new product development cycles

facilitating and managing organizational innovation

leverage the expertise of people across the organization

benefiting from 'network effects' as the number of productive connections between employees in the organization increases and the quality of information shared increases

managing the proliferation of data and information in complex business environments and allowing employees to rapidly access useful and relevant knowledge resources and best practice
guidelines

facilitate organizational learning

managing intellectual capital and intellectual assets in the workforce (such as the expertise and know-how possessed by key individuals) as individuals retire and new workers are hired

a convincing sales pitch from one of the many consulting firms pushing Knowledge Management as a solution to virtually any business problem, such as loss of market share, declining
profits, or employee inefficiency.

Knowledge Creating process, SECI Model

How the knowledge creating process works in an organization? The answer lies with how we engage the tacit and explicit knowledge in the process. It can't be just one way or
the other. The process works by different linking process of these two types of knowledge in the organization. Knowledge creating process is a continuous, self-transcending
process. As knowledge is created between individuals or between individuals and the environment, individuals transcends the boundary between self and others. As per Ikujiro
Nonaka there are four types of knowledge creating process.
Socialization
Externalization
Combination
Internalization

Socialization
This process focuses on tacit to tacit knowledge linking. Tacit knowledge
goes beyond the boundary and new knowledge is created by using the
process of interactions, observing, discussing, analyzing, spending time
together or living in same environment. The socialization is also known as
converting new knowledge through shared experiences. Organizations gain
new knowledge from outside its boundary also like interacting with
customers, suppliers and stack holders. This occurs in traditional
environments where son learns the technique of wood craft from his father by
working with him (rather than from reading from books or manuals).

Externalization
This process focuses on tacit to explicit knowledge linking. It helps in creating new knowledge as tacit knowledge comes out of its boundary and became collective group
knowledge. This process we can say that knowledge is crystallized. The process of externalization is often driven by metaphor analogy and models. Quality circles are formed in
manufacturing sectors where workman put their learning and experience they have to improve or solve the process related problems.

Combination
Combination is a process where knowledge transforms from explicit knowledge to explicit knowledge. The finance department collects all financial reports from each
departments and publics a consolidated annual financial performance report. Creative use of database to get business report, sorting, adding , categorizing are some examples
of combination process.

Internalization
By internalization explicit knowledge is created using tacit knowledge and is shared across the organization. When this tacit knowledge is read or practiced by individuals then it
broadens the learning spiral of knowledge creation. Organization tries to innovate or learn when this new knowledge is shared in Socialization process. Organizations provide
training programs for its employees at different stages of their working with the company. By reading these training manuals and documents employees internalize the tacit
knowledge and try to create new knowledge after the internalization process.