Strategic framework for knowledge management to achieve organisational effectiveness

The idea of knowledge can be understood through its relationship to data and information. Parikh (2001) states that data are merely raw facts collected from business transactions and activities, and that data must be structured into a meaningful, composite model to become information. Once information is created from such constitution of pure data sets, it can be filtered through a relative model of understanding. Thus, knowledge is created, only as information is interpreted and evaluated from a contextual mental model. Because individuals and companies as whole have different mental models (Senge, 1994), the knowledge extracted from the same compilation of information can differ greatly, not only in quality but also in applicability. Knowledge management thus differs from information management because the former implies a persistent, intentional effort of extracting what is critical for business success from available information, while the latter is more concerned with making critical information available in a timely and consistent manner to end-users within the organizational structure. Knowledge management is therefore the creative mining of information from diverse sources with the purpose of business opportunities in mind. It is argued that it is simply the next phase of an evolutionary process of strategic frameworks that seek to explain how an organization may generate superior performance compared to its competitors in the market. Thus, knowledge management is a strategic process, which indicates the goal of differentiation from competitors so that a sustainable competitive advantage is achieved.

This paper on strategic framework of knowledge management work outlines what steps should be taken to leverage the knowledge in the organization, which will lead to its overall efficiency and effectiveness.