Defining Knowledge Management


Where is the wisdom we have lost in knowledge?

Where is the knowledge we have lost in information?

— T. S. Eliot

It is important that we have a clear understanding of what we mean by knowledge and not confuse it with information. In the information age the focus was on the processing of data into information and the control of the flow of information, but in the knowledge era there is a shift in focus to knowledge because of the recognition that knowledge is now the primary source of wealth. Given the importance of this shift it is essential to understand the distinction between information and knowledge, which are often confused for each other. It is also useful to understand the way in which they relate to data and wisdom, therefore the following definitions of these terms:

  • Data are the pure and simple facts without any particular structure or organization, the basic atoms of information,
  • Information is structured data, which adds meaning to the data and gives it context and significance,
  • Knowledge is the ability to use information strategically to achieve one’s objectives, and
  • Wisdom is the capacity to choose objectives consistent with one’s values and within a larger social context.

These definitions lead to the definition of knowledge management:

Knowledge management is the collaborative organizational activity of creating the environment, both attitudinally and technologically, so that knowledge can be assessed, shared and created within an organization in a way that all the experiences and knowledge within the enterprise, including that of all its staff, customers, suppliers and business partners, can be organized to achieve the enterprise’s objectives and reinforce its values.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Primary Research Data


Primary data consists of data that is obtained directly from the source. It is generally captured through surveys, interviews, focus groups, or other direct interactions with individuals. The use of primary data has increased dramatically over the past few years, and with the advent of bar code scanners, home shopping, interactive television, and other electronic media, the number of channels through which primary data can be collected will increase exponentially.

Primary data consists of two major types:

  • Individual level demographic data such as age, income, and home value.
  • Attitudinal and behavioral data.

In the past, primary data was often the province of market research, and was used primarily to provide direction for marketing programs that addressed large groups of customers and prospects. Demographic data was used to get a better “fix” on the characteristics of the larger market, and attitudinal data was used to provide a sense of which issues were important to various groups of customers, and therefore should be emphasized in promotional materials.

Market researchers use primarily data to identify new product opportunities or new segments within the customer file. This is usually done by sending surveys to a representative sample of customers or prospects to determine what products and services they are interested in but do not currently purchase from the firm sending the questionnaire. In this way, primary data gathered through market research surveys can lead to the development of products that are either new to the firm or, in some cases, new to the industry.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Shifting Attitudes


One of the most difficult issues facing many high-tech and industrial companies is how to overcome the lack of strategic thinking about market segments that has historically been a serious deficiency. For years, and in many cases generations, the management of these companies has looked for ways to strengthen R&D, sales, and/or production activities without a clear focus on defined market needs. Now these same managers must reorient their thinking first to define specific segments and then to determine what it takes to serve these segments more effectively than the competition. This attitudinal shift is much more fundamental than it sounds. For the many executives who have talked a good game of marketing without doing much different must now provide the leadership and direction to ensure that R&D, production, and sales activities are specifically geared to the requirements of selected market segments.

To change the corporation’s mind-set to strategic market segmentation, multiple-level and intensive management development programs are usually necessary. When managers have typically advanced through engineering and manufacturing or “operations,” a strategic market segment orientation is even more needed. These managers must learn that market segmentation and market selection are the starting points for all decisions and action programs.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight