Knowledge Management - Essay Example

Knowledge Management Submitted by: XXXXX XXXXXX Number: XXXXXXXX of XXXXXXXXX XXXXXXXX XXXXXXXXX Code: XXXXXXXDate of Submission: XX – XX – 2009Introduction:Since ages there has been an extremely important and true saying, ‘Knowledge is Power’. Knowledge plays a backbone for almost every activity in everyday life. Knowledge Management has been in use for a very long period of time and has a strong and distinguished history. The first term related to the knowledge management was first coined in 1960, when Peter Drucker first introduced the term ‘Knowledge Worker’.

Over the years there has been a significant growth in this field and various authors and scholars have brought about a number of different areas of focus on the subject. It was way back in 1986, that there have been a number of theories that have been developed to manage the intellectual capital in the 21st century (Carlie, 1998). There has been immense and rapid growth in terms of knowledge management and this has been even higher since 1996.Importance of Knowledge Management in Businesses:Knowledge management is a growing and established discipline and is being followed in many large organisations.

Knowledge Management is slowly becoming a major and a very crucial issue in companies. It is essential to understand that knowledge is a major economic challenge for companies in the future (Hewitt, 2000). For every innovative and successful organisation, there is a high need for creating, capitalising and sharing the Knowledge capital. It is essential to understand that Knowledge management is a programme which is more of a long term effort, and includes a strong need for strategic commitment and involves and includes a number of analysis of the knowledge and know how in the company.

It also involves the integration of a number of tools as well. Knowledge has been noted to bring about the possibility for mangers and businesses to make decision to create higher success and competitive advantage (Hewitt, 2000). Knowledge plays and essential part in every business and creates a potential in managers to use the corporate knowledge that they have to improve and optimize their resources not only in terms of financial but also the in terms of human resources as well. Researchers have noticed over the years that almost 75 – 80 percent of all large companies have a strong inclination and formal KM programs.

KM is slowly becoming a major and crucial issue in companies. Conclusion: It is safe to say that knowledge has already grown largely and it has become one of the most essential aspects of any business. It has become a major driver and money is now slowly phasing out of the scene and as the old saying of ‘Knowledge is king’, is now being put to use in almost every industry and every company across the world (Carlie, 1998). In addition, businesses and individuals from across the globe have an increase awareness to ensure that they are constantly in the loop and are updated at all times.

Coakes (2004) concludes that if KM is implemented well, it can enhance productivity, develop worker collaboration, and condense product development times. “Implemented badly it may incur significant costs without delivering these benefits” (p. 406).ReferencesCarlie, P.R. (1998). Working Knowledge: How Organizations manage What they Know. Human resource Planning, 21 (4), 58 -59.Coakes, E. (2004). Knowledge management--a primer. Communications of AIS, 2004(14), 406-489. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=16744170&site=ehost-live&scope=site Drucker, P. (1998). The coming of the New Organization.

In Harvard Business review on Knowledge Management. Harvard Business School PublishingHewitt, P. (2000). Creating Competitive Advantage in Knowledge Economy. A speech given at the Said Business School, Oxford University