Report on the Importance of the Knowledge Management

Running Head: KNOWLEDGE MANAGEMENT 1
Knowledge Management

Knowledge Management 2
Abstract
Knowledge management refers to the procedure wherein current knowledge is properly captured,
processes and utilized for the growth of the organization. In the present, knowledge is the most
important asset and the companies are taking several initiatives for the knowledge management
of the organization. The present report discusses the importance of the knowledge management
methods in the occupational procedures of an organization. It has also shed light on the
significance of block chain technology in the knowledge management process. It is commonly
used in the encryption and the cryptographic purposes.

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Introduction
In business environment, knowledge is considered as the information needed to make business
decisions. In the present era, knowledge is considered as the essential factor in realizing the
success. A company’s knowledge is dependent upon the intangible assets which includes the
information in the mind of the employees, databases, files and other documents. The knowledge
management acquisition techniques utilize this information and make it available to a large
number of people. The knowledge must be captured and acquired in useful forms which is an
integral part of the knowledge management (Hislop, 2013). The knowledge is elicited either
from the experts of the domain or through the set of documents pertaining to a particular domain.
The acquisition of the knowledge refers to different intra-organizational processes which assist in
the creation of the tacit and the explicit form of knowledge. The knowledge acquisition starts
with individuals and integrate to the organizational level along with the identification or the
absorption of the information. Therefore, acquisition can be defined as the creation of the
knowledge in the business corporation through a learning process (Liebowitz, & Frank, 2016). It
also includes acquisition of external knowledge created through collaboration with the
organization, business environment and the universities.
The knowledge acquisition refers to the process of learning and encompasses learning as two set
of activities, namely, operational routine and dynamic capabilities of the organization. The
operational routine refers to the functionality of the firms and the dynamic capability refers to the
activities which enhance the routine of the organization. The routines are stable behavior patterns

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which demonstrates the reaction of the organization as a result of internal or external stimulus.
The operational routine of the organization is focused on performing the procedures so that
income is generated within the organization whereas the dynamic capabilities refers to making
changes in the organization so that competitive advantage can be retained in the organization
(Holsapple, 2013). The routines of the organization is developed by the accumulation of
experience and established in the organization with the accumulation of the knowledge. The
cumulative knowledge accumulation assist the organization to innovate and propose
technological advances.
The cumulative capabilities of the knowledge depends on the capacity of the organization to
identify knowledge and acquire it. The knowledge should be assimilated and utilized so that a
competitive advantage can be obtained. The organization with high knowledge absorption
capacity should be more dynamic and able to exploit the opportunities in the external
environment. The reactivity and the proactivity of the organizations is for long-term duration.
Another important aspect of knowledge management is that it emphasize on the creative position
of the organization within the organization. The creative position or the innovation can be
identified in the organization when knowledge is identified which serves as the solution to the
problem. If the degree of innovation is limited or dependence of expertise is less, knowledge
transformation can be used to foster innovation. In this regard, the present paper is focused on
understanding the concepts of knowledge management in business organizations. The knowledge
acquisition is an important phase in the knowledge management of the organization. Different
business organizations use different strategies for the knowledge acquisition. It is important to

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protect the information acquired through different means. Blockchain is a novel technology
which assist in the protecting information through encryption technology.
Literature Review
In the present times, knowledge management is the most integral in developing the core
competency of the business organizations. It is the process of creating, sharing and managing
information so that the objectives of the organization can be met with the optimal use of
knowledge. The knowledge extraction is the process of the knowledge creation from the
structured and the unstructured resources. It refers to the reuse of existing knowledge in
documented or formal form or generating a schema with the source data present in various
departments of the organization. Several organizations collects and store vast amount of
information; however, valuable information hidden in the data can be transformed into valuable
and useful knowledge. The management of useful information can be a challenge for the
business organizations (Jones & Sallis, 2013). Information Technology (IT) can aid in
knowledge management for creation, sharing, integration and the distribution of the knowledge.
Knowledge management can be referred as the process of data usage for the benefits of the
organization.
In the perspective of Lai, Hsu, Lin, Chen, & Lin (2014), KDD process comprises of iterative
sequence and methods which includes selection, preprocessing, transformation, data mining and
interpretation. The selection refers to the selection of the relevant data from the database to
perform analysis. The preprocessing is the process of removing noise and the irrelevant data
obtained from different sources. The interpretation or the evaluation of the data mentions to

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interpreting the patterns into knowledge so that redundant or irrelevant patterns can be removed.
It translate the useful patterns into understandable form.
According to Raval (2016), blockchain is an emerging technology which has the potential to
change the manner in which the data is stored and managed. The blockchain technology has the
potential to decentralize the data and information storage which can reduces the role of
middleman companies in information regulation.
Fleming (2017) has discussed that blockchain technology assists in the creation of decentralized
systems, intelligent assets and smart contracts in which there is minimal requirements of the
human intervention. This technology has developed new governance systems with increased
participation in the decision-making process, autonomous organizations which can operate over
different systems without any intervention.
According Hofmann, Strewe & Bosia (2017), blockchain technology can reduce the role of
economic regulators in the society. With this technology, the people can transfer the digital
information or data in a safe, secure and immutable manner. It creates self-monitoring digital
contracts which can be executed without any human intervention. It also has the potential to
create decentralized marketplaces which does not require intervention from the government and
the regulatory bodies. In the perception Davidson (2017), technology can result in the shift of
power from the centralized authorities in different fields in communication, business or law.
With bitcoins, it has resulted in the development of digital currency which can be used in the
global payment system, digital asset development and decentralized government. It increases the