Measuring Strategic Value of Knowledge Using Knowledge Lifecycle Model: A Case of Indian Banking

Due to constant surge in knowledge demand, it is suggested that organizations measure strategic value of their knowledge, to separate the critical knowledge, reduce information clutter and fight cognitive overload. This is done by examining the knowledge elements that are more critical to organizational success than others. The approach is largely based on finding out the contribution of each knowledge element under stages of knowledge lifecycle. Accordingly, the knowledge development capabilities can be improved. The concept serves as one approach to measure knowledge in the organizations. It identifies high strategic value knowledge elements for each knowledge lifecycle stage based on their contribution towards building knowledge. Similarly, low-value knowledge elements for each stage of knowledge lifecycle can be identified, and improved, restructured or dropped. Strategic value of knowledge thus can be measured by segregating high to least contributing knowledge elements using the knowledge lifecycle model. This will help organizations to focus on improving competitiveness by augmenting their critical knowledge source and improving the ones that have potential to contribute more. Indian commercial banks have been taken as an example to validate the knowledge lifecycle model using Confirmatory Factor Analysis (CFA) for the purpose of this research. The knowledge lifecycle model that serves the basis for this research has been developed from the literature review on Knowledge Management.