ROLE OF KNOWLEDGE MANAGEMENT IN VALUE CREATION

Today’s business atmosphere is characterized by continuous, usually radical modification, such a volatile climate demands and look forward for a  new attitude and approach within the organization. Therefore there is a need for organizations to change from adaptive organization to learning organization. An organization must become a learning organization to grow and prosper in this information age. Knowledge could be a term with several meanings reckoning on context however is closely associated with such ideas as info, instruction, communication, representation, learning and mental stimulus. Knowledge is distinct from simple information. Both knowledge and information consist of true statements but knowledge is information that has a purpose or use. Thus knowledge is information associated with intentionality. Knowledge is that the awareness and understanding of facts, truths or information gained in the form of experience or learning. The study of knowledge is called Epistemology. Knowledge Management is an  interdisciplinary business model dealing with all aspects of knowledge within the organization. It emphasizes on the collection of processes that govern the creation, dissemination and utilization of knowledge. Knowledge is that the full utilization of (data of knowledge) and data let alone the potential of people’s skills, competencies, ideas, intuitions, commitments and motivation. It is more relevant for sustaining business than capital, labor and land. Knowledge can be seen as a driver for the development of an organization strategy and a tool to enhance organizational competitiveness.

Knowledge Management improves and  enhances different structure initiatives such as organizational learning,  Total Quality Management,  Business Process Re–engineering  providing a new and urgent focus to sustain competitive position. The importance of data has always been recognized but until now organizations haven’t felt able to manage it  as a result  they understood neither the issues and also the opportunities nor the strategies and solutions. However this picture is gradually changing as models, methods, tools and techniques for effective knowledge management are becoming available and organizations are in a way of identifying its’ importance and implementation. It succeeds fully when it is woven into the fabric of an organization and becomes intrinsic to an organization’s process. The focus of Knowledge Management Information System  is on doing the RIGHT THINGS instead of DOING THINGS RIGHT. Value creation is rooted  within the acceptable combination of human network, social capital, intellectual capital, and technology assets, facilitated by a culture of change. It is argued that to be effective organizations needn't solely to barter their migration from a  information sharing to a information creation culture, however conjointly to make sustained organizational and societal values. Knowledge is a most powerful asset of learning organization which leads to creation of values in the present organizational economy.