Knowledge management is the process of creating value from an organization’s tangible and intangible assets (Baporikar, 2004). Many organizations in the private or Public Sectors across the globe have started to realize the importance of knowledge management in streamlining their operations. The importance of the term Knowledge and its management can be gauzed from the fact that the age old notion of “Industrial economy and industrial nations” has taken a back-seat and is being replaced by more enticing notion of “Knowledge economy.” Public Sector has lagged behind a bit in realizing the importance of knowledge management, but with the tremendous investment in KM in private enterprises leading to innumerable benefits, this sector too has started to appreciate the benefits of embracing KM.
Before delving deep in to management of knowledge, it is important to understand what we want to manage – The Knowledge. The term “knowledge” is one of the more confusing aspects of KM. The terms “information” and “data” are often used interchangeably with the term “knowledge”. In fact, they have different meanings and understanding the differences is essential to doing knowledge work successfully. Knowledge is derived from information. It results from making comparisons, identifying consequences, and making connections. Knowledge also includes judgment and “rules of thumb” developed over time through trial and error. Here is a working definition of Knowledge suggested by Thomas Davenport and Laurence Prusak (Tiwana, 2000).