Knowledge management is an umbrella term for all strategic and operational activities and management tasks aiming to optimise the way knowledge is used.
Knowledge management is the methodical influencing of the knowledge base of a business or individual person. The “knowledge base” is the sum of all the data, information, knowledge and competence that a person or organisation holds (or should hold) in order to complete the full range of tasks assigned to them. Organisational knowledge management should systematically anchor individuals’ knowledge and competence (human capital) within various levels of the organisation’s structure. Organisational knowledge management can therefore be understood as a form of intervention, based on principles of organisation theory and learning, which seeks to systematically implement these principles in practice.
As a consequence of the modern knowledge- and innovation-focused age of communication, a business’ existing knowledge capital is becoming a more and more decisive factor influencing production. The knowledge held by a company can therefore be understood as a production factor alongside capital, labour and land. The knowledge-based “view of the firm” forms the primary strategic basis for knowledgemanagement, expanding the concept of information (e.g. in the context of market pattern and influence) as an operational resource or production factor.