Executive Summary

The purpose of the research report is to study the importance of knowledge management in business. Synthesis of relevant information using literature review is methodology for this study. Main conclusion is that knowledge management is important in today’s business climate.

Table of Contents

Page
Preface ii

Acknowledgements iii

Executive Summary iv

1 Introduction vi
1.1 Purpose of Research vi
1.2 Purpose of Research vi
1.3 Research Methodology vi

2. Knowledge Management in Business vi
2.1 Overview of Knowledge Management vi
2.2 Knowledge Management as a Strategic Tool vi
2.3 Critical Success Factors of Knowledge Management vii
2.4 Knowledge Management as an Advantage viii

3. Conclusions viii

4. Recommendations ix

References ix

1. Introduction

1.1 Purpose of Research
Knowledge is the most strategically significant resource of an organization. Knowledge management has become increasingly important and a hot topic in recently years. The purpose of this research is to provide an overview of knowledge management concepts and processes in business practices.

1.2 Scope and Limitation
Knowledge Management (KM) is a pretty broad subject area. Therefore this research will look at some basic ideas about KM. We will not focused on the specific software and hardware used for KM activities (which would be more of an engineering/IT approach to the subject.

1.3 Research Methodology
In this study, information related to KM will be firstly gathered through various sources such as books, papers, reports, and articles in the Internet. The information obtained will then be analyzed and the findings from the analysis will be discussed and summarized. Conclusions will be drawn from the findings identified and recommendations will be given in the end.

2. Knowledge Management in Business

2.1 Overview of Knowledge Management
The notion of knowledge management is nothing new. Corporations have always had some process to synthesize their experience and integrate it with knowledge acquired from outside sources (Sarvary, 1999). However, not until recently have scholars and practitioners alike become increasingly attracted to the science of applied knowledge within organizations. This movement is unique in combining information technology theory with pioneering work on models of learning organizations (Senge, 1994).

2.2 Knowledge Management as a Strategic Tool
The fundamental objective of any corporate KM program is to support the achievement of strategic business objectives. In other