Knowledge Management

In today’s business environment, companies face increasing competition and a rising rate of innovation. Unlike in the past, where organizations could compete based on either quality or low cost, almost every organization today competes based on its ability to be continually innovative – in product, service, or concept. A company’s competency can be classified into similar competencies and core competencies. Similar competencies are those common processes that successful companies adopt within an industry. 

Core competencies, however, are processes that are unique to individual firms and give rise to their competitive advantage. Whereas generic knowledge is the basis of the competence possessed by all the firms in an industry, specific knowledge is particular to individual firms, resulting in their individual core competencies and potential competitive advantage.

To this end, knowledge plays a unique role in building and conserving an organization’s core competencies through knowledge networking. Knowledge management can be defined as a formal, directed process of determining what knowledge individuals within a company have that could benefit others in the company, then devising ways of making it easily available through application of artificial intelligence, social networks, and decision support systems. By leveraging knowledge management, organizations can identify and share their core competencies, which can lead to better business outcomes and a competitive edge in the market.