Knowledge-based enterprise : theories and fundamentals

Managing knowledge?capturing it, storing it, recalling it, and using it?is the fundamental process that will distinguish between successful and unsuccessful ?organizations? of all sizes?from small groups to entire economies?in the 21st century. The authors take this assertion for granted requiring no further comment or proof. We live in a knowledge economy, one where knowledge is the critical resource, more important than any of the other traditional economic resources. What must an organization do in order to gain control of and effectively use the knowledge resource? To answer that question, we should begin by clarifying what we mean by knowledge and the knowledge economy. That is where Wickramasinghe and von Lubitz begin this book. The first three chapters of the book focus on the nature of knowledge, the ways that knowledge is ?created,? and the centrality of knowledge to organizational performance. Knowledge goes beyond data or information, though these are its fundamental building blocks. Knowledge is not passive and implies the application and productive use of information. Knowledge exists in an organization and in its environment, but the organization does not automatically benefit from that knowledge. It must be able to capture the knowledge, represent, store it, and make it available for recall, dissemination, and use. An organization that can capture, store, recall knowledge, and then apply it in relevant situations is at great advantage in today?s economy.