April 2004
The Importance of the Knowledge Value Chain
The advent of Internet and intranet technology have brought about a change in the accessibility of disparate information databases. Managed properly, knowledge can become an organisation’s competitive advantage.
“If we only knew half of what we know, we
would be twice as profitable”
Carla Fiorini, CEO Hewlett
Packard Corporation
The Knowledge Value Chain
A traditional value chain is a series of linked business processes that create value in both products and services, which are delivered to the customer. The knowledge value chain is just like a traditional value chain except that it focuses primarily on knowledge processes instead of business processes.
Shown above is a knowledge value chain. Within the value chain, business processes and knowledge processes interweave and at the touch points, create points of confluence that require integration of knowledge management practices.
The above diagram demonstrates how a knowledge management solution can encompass all of the knowledge and business processes in a value chain. This type of solution aims to publish knowledge to stakeholders (as well as discover new knowledge). This knowledge is the collective “know-how” that supports critical business decisions and ongoing business processes. It has four key stages:
- Catalogue and Store – capturing, organising and storage of knowledge.
- Publish – making knowledge accessible to stakeholders.
- Locate & Retrieve – finding knowledge easily in a timely manner.
- Discovery – creating new knowledge to further improve the organisation.
What is the Difference Between Data, Information and Knowledge?
The difference between data and information is clear: data is without context or meaning whereas information is semantically rich. So what is the difference between information and knowledge? Information and knowledge are distinct based on their internal organisation; information is disorganised, whereas knowledge is organised. This organised knowledge empowers stakeholders with the ability to make informed decisions based on superior information.
Evolving from Information Management to Knowledge Management
The diagram below shows the evolution from information management to knowledge management, and with this evolution comes many benefits:
So What are the Benefits then?
As the diagram above shows, effective management of knowledge leads to numerous business benefits including:
- Improvement in operating efficiency of business processes
- Addresses concerns over the loss of corporate memory arising from the increasing mobility of labour
- Applied knowledge enhances the value of products and services
- Sharing of best practices with stakeholders
- Better communication with stakeholders
- Increased success of innovation
- Adapt to new market conditions quickly
Fundamentally, knowledge breeds competency in the organisation; such competencies ultimately determine competitiveness. Thus, properly managing knowledge leads to increased competitiveness.
No Success Without Change
To successfully implement any knowledge management solution, a knowledge strategy needs to be formulated. This strategy should be aligned with the business strategy to help drive the organisation forward towards a common goal. A champion needs to be selected for overall responsibility of the strategy and should take ownership of knowledge management issues for the organisation; this person becomes the Chief Knowledge Officer (CKO).
The adoption of such a methodology, in most cases, requires a change in organisational culture. Without a knowledge sharing culture, the organisation will fail in its efforts to manage tacit knowledge effectively. The focus should be on creating learning processes that become self-sustainable (because they become part of the operating culture). Whilst information technology is an enabler of knowledge management, it is the culture of the organisation that determines how successfully implemented it is.
So What Knowledge Management Solutions does Pro Enviro Offer?
As a brief example, Pro Enviro has a knowledge management solution called: Essentials - an Internet-based knowledge management tool that helps you store, publish and retrieve corporate information relating to your business management systems. Our Essentials brand is divided into three separate products: Quality Essentials, Health and Safety Essentials and Environmental Essentials - all these products support the area they relate to.
To assist your stakeholders in using both the product and moreover, to help them understand the theories, concepts and legislation that underpin your company's policies and procedures, we have developed a series of training courses, that Essentials is permanently linked to. The table below provides a flavour of the courses that will support your stakeholders should you use one or more of the products from the Essentials line.
Pro Enviro Course Portfolio
Category |
Course |
Product |
Environmental |
Climate Change Levy for Directors and Managers |
Environmental Essentials |
Environmental |
Emissions Trading for Directors and Managers |
Environmental Essentials |
Environmental |
Reducing Energy Costs |
Environmental Essentials |
Quality |
An Introduction to Quality for Directors and Managers |
Quality Essentials |
Quality |
An Introduction to Quality for Employees |
Quality Essentials |
Quality |
Auditing |
Quality Essentials |
Health and Safety |
An Introduction to Health and Safety for Directors and Managers |
Health and Safety Essentials |
Health and Safety |
An Introduction to Health and Safety for Employees |
Health and Safety Essentials |
Health and Safety |
Offshore Health and Safety |
Health and Safety Essentials |
Please contact Amir Davies if you wish to discuss this article or your knowledge management requirements.
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