The goal of knowledge management is to help an organization make the most productive use of the knowledge it has accumulated.

Historically, management information systems have focused on capturing, storing, managing, and reporting explicit knowledge.

Organizations now realize they need to integrate explicit and tacit knowledge into formal information systems.

Knowledge management systems (KMSs) refer to the use of modern information technologies-the Internet, intranets, extranets, databases-to systematize, enhance, and expedite intrafirm and interfirm knowledge management.

KMSs are intended to help an organization cope with turnover, rapid change, and downsizing by making the expertise of the organization’s human capital widely accessible.

Organizations can realize many benefits with KMSs. Most importantly, they make best practices, the most effective and efficient ways of doing things, readily available to a wide range of employees.

Enhanced access to best-practice knowledge improves overall organizational performance.

For example, account managers can now make available their tacit knowledge about how best to manage large accounts.

The organization can then utilize this knowledge when it trains new account managers.

Other benefits include improved customer service, more efficient product development, and improved employee morale and retention.

At the same time, however, implementing effective KMSs presents several challenges.

First, employees must be willing to share their personal tacit knowledge. To encourage this behavior, organizations must create a knowledge management culture that rewards employees who add their expertise to the knowledge base.

Second, the organization must continually maintain and upgrade its knowledge base. Specifically, it must incorporate new knowledge and delete old, outdated knowledge. Finally, companies must be willing to invest in the resources needed to carry out these operations.