Knowledge Management and Innovation

Knowledge Management and Innovation

Knowledge management is essentially the cultivation, harvesting and utilisation of knowledge.As innovation is the commercialization of new ideas, knowledge plays a pivotal role in the innovation process. It’s an essential part of making sure you capture the most from your
innovation efforts.

How to Boost Your Knowledge Management Capabilities

You can gain knowledge via experience, experimentation or acquisition; however, knowledge is built on data and information that is used to improve understanding (knowledge) and ultimately better decisions and outcomes (wisdom).

Knowledge Management

Data – discrete pieces of raw observation, numbers, words, records and so forth that don’t have any context

Information – data with additional context that gives it greater meaning

Knowledge – deeper and richer information that leads to improved understanding

Wisdom – knowledge that leads to better decisions and outcomes

Knowledge management’s objective is to facilitate building knowledge and, ultimately,
the wisdom that enhances innovation capability.

The Difference Between Tacit and Explicit Knowledge

You can divide knowledge into two broad categories:

Explicit knowledge – knowledge that you’re aware of and can codify

Tacit knowledge – knowledge that you possess but find difficult to explain

Tacit vs Explicit Knowledge

Typically, a great deal of business knowledge is tacit knowledge and not easily accessible. The more tacit knowledge is codified and converted into explicit knowledge, the more value you can derive from it.

The Knowledge Management Process

  1. Identifying and codifying existing knowledge
  2. Generating and acquiring new knowledge
  3. Storing and retrieving knowledge
  4. Sharing and distributing knowledge
  5. Embedding knowledge into processes and services

Identifying and Codifying Existing Knowledge

The knowledge identification process involves auditing knowledge that exists inside your business and identifying mission-critical knowledge gaps.

Generating and Acquiring New Knowledge

Accelerating your learning curve is essential to sustaining competitive advantage and building innovation capability.

Storing and Retrieving Knowledge

  • Paper-based documents
  • Electronic file systems
  • Databases
  • Knowledge management software

Sharing and Distributing Knowledge

  • Access to codified knowledge
  • Email and intranet sharing
  • Training programs
  • Mentoring and coaching

If you’d like to learn more, call Fortitude Business Consulting on 1300 551 040.


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