Knowledge Management has been discussed and described by several experts. Ron Young, CEO of Knowledge Associates International has defined knowledge management as, “the discipline of enabling individuals, teams and entire organizations to collectively and systematically create, share and apply knowledge, to better achieve their objectives”(Knowledge Management, 2009). knowledge management is a growing and established discipline and is used in many large organizations. According to Pentland (1995), as cited in Alavi and Leidner (2001), organizational knowledge creation involves developing new content or restoring existing content within the organization’s tacit and explicit knowledge. The start of the knowledge management was mainly in organizations in Northern Europe and North America. However, this concept has grown and has become an essential aspect for companies across the world. Researchers have noticed over the years that almost 75 – 80 percent of all large companies have a strong inclination and formal knowledge management programs. Knowledge Management is slowly becoming a major and 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 organization, there is a high need for creating, capitalizing and sharing the Knowledge capital. It is essential to understand that knowledge management is a program that is more of a long-term effort, and includes a strong need for strategic commitment and involves and includes the analysis of the knowledge and capabilities and tools in the company.
Business Driver: Since ages, there has been an extremely important and true saying, ‘Knowledge is Power’. Knowledge is the foundation for almost every activity in everyday life. McInerney (2002) believes that knowledge management allows companies to benefit from the knowledge that resides in an organization by using it to achieve the organization’s mission. With the attention that is being provided to the products and services alone over the years, the most significant key to value creation has been missed out over the years.