Chapter 11, Problem 1RQ

Explanation of Solution

Knowledge management:

• Knowledge management can be defined as the efficient handling of available information by organisations through a system of methods and procedures.
• The activities include creation, storage, distribution, or transfer of knowledge which are then utilised and applied to create awareness throughout the organisation.

Value of knowledge management to business:

The values provided to an organisation through knowledge management is mentioned below:

• It provides people in the organisation to utilise the knowledge and reapply it for gaining a competitive advantage.
• Efficient knowledge management can improve the revenues and profitability of the business.

Explanation of Solution

Important dimensions of knowledge:

The important dimensions of knowledge are as follows:

• Knowledge is a firm asset. It is an intangible asset and requires organisational resources to transform data into knowledge. It does not diminish over time, but instead increases as more people share it.
• Knowledge has different forms. It involves knowing procedures, certain craft, skills, where the information is codified or not, the time of happening, and so on.
• Knowledge has a location. It is a cognitive map of mental modes of individuals. It is embedded in the firm’s culture and works in certain situations only. It depends on the social and individual factors.
• Knowledge is situational. There is importance to know when the acquired knowledge is to be applied. So, it is a tool which needs to be applied to proper situations only.

Explanation of Solution

Difference between data, knowledge, and wisdom:

Data, Knowledge and Wisdom can be differentiated as follows:

• Data refers to raw and unstructured facts that needs to be processed to obtain useful information.
• Knowledge is the information that is processed and converted to identify patterns, rules. Algorithms are used to convert that information into knowledge.
• Wisdom is the utilisation of knowledge gained and applying them to solve a problem. It identifies how, where and when the knowledge needs to be used.

Difference between tacit knowledge and explicit knowledge:

The difference between tacit knowledge and explicit knowledge is shown below:

Tacit knowledge	Explicit knowledge
It is Undocumented knowledge.	It is documented knowledge.
Difficult to represent in words or pictures.	Easy to represent in words and pictures.
Not possible for transfer between people.	Possible to transfer from person to person.
It is objective.	It is subjective.

Explanation of Solution

Stages in knowledge management value chain:

The stages of knowledge management in value chain are mentioned below:

• Data and Information acquisition
• Knowledge acquiring
• Knowledge storage
• Knowledge dissemination
• Application of knowledge

Data and Information Acquisition:

It can be defined as the process of collecting data and processing them to convert into useful information.

Knowledge Acquiring:

• It is the process of gaining knowledge from an individual who is considered an expert to solve the problem.
• There are several ways to acquire knowledge.
• Patterns, rules, and algorithms are used to convert the information into knowledge.
• Examples include data mining, neural networks, and so on.

Knowledge Storage:

• It includes storage of documents, usage of patterns and rules to convert information to knowledge.
• The stored knowledge placed in a database, can be retrieved by employees when required.
• Expert systems and knowledge databases are examples of the same.

Knowledge Dissemination:

• To focus the attention of employees in a sea of available knowledge, dissection is done through collaboration of training programs, tools such as e-mail, social sites, presentations, and search engines.
• These documents help personnel in decision making and solving problems.

Knowledge Application:

• The application of knowledge acquired to solve problems and add business value to the organisation.
• Thereby providing a return on investment.
• Documents related to the knowledge are utilised in decision making processes.
• Example, Decision support systems.