Knowledge management (KM) is a process that helps organizations manipulate important knowledge that comprises part of the organization’s memory, usually in an unstructured format.

For an organization to be successful, knowledge, as a form of capital, must exist in a format that can be exchanged among persons. In addition, it must be able to grow.

Knowledge

In the information technology context, knowledge is distinct from data and information. We know that, data are a collection of facts, measurements, and statistics; information is organized or processed data that are timely and accurate.

Knowledge is information that is contextual, relevant, and useful. Simply put, knowledge is information in action. Intellectual capital (or intellectual assets) is another term for knowledge.

Numerous theories and models classify different types of knowledge. Here you will focus on the distinction between explicit knowledge and tacit knowledge.

Explicit and Tacit Knowledge

Explicit knowledge deals with more objective, rational, and technical knowledge. In an organization, explicit knowledge consists of the policies, procedural guides, reports, products, strategies, goals, core competencies, and IT infrastructure of the enterprise.

In other words, explicit knowledge is the knowledge that has been codified (documented) in a form that can be distributed to others or transformed into a process or a strategy. A description of how to process a job application that is documented in a firm’s human resources policy manual is an example of explicit knowledge.

In contrast, tacit knowledge is the cumulative store of subjective or experiential learning. In an organization, tacit knowledge consists of an organization’s experiences, insights, expertise, know-how, trade secrets, skill sets, understanding, and learning. It also includes the organizational culture, which reflects the past and present experiences of the organization’s people and processes, as well as the organization’s prevailing values.

Tacit knowledge is generally imprecise and costly to transfer. It is also highly personal. Finally, because it is unstructured, it is difficult to formalize or codify, in contrast to explicit knowledge.

A salesperson who has worked with particular customers over time and has come to know their needs quite well would possess extensive tacit knowledge. This knowledge is typically not recorded. In fact, it might be difficult for the salesperson to put into writing, even if he or she were willing to share it.