Knowledge management and business growth

Business knowledge is an important strategic asset. It includes the skills, experience and insight your business builds and uses. It supports all your business activities and helps you operate effectively.

Types of business knowledge

Knowledge can exist in many forms, but usually falls under one of three main categories:

Tacit knowledge

This is personal know-how or skills rooted in experience or practice (eg aesthetic sense or intuition). Tacit knowledge is difficult to write down, visualise or transfer.

Explicit knowledge

This is articulated knowledge recorded in documents, memos, databases, etc. Explicit knowledge is easy to store, distribute and communicate.

Embedded knowledge

These are skills and understanding locked in processes, products, rules or organisational culture (eg informal routines, codes of conduct, organisational ethics).

Knowledge can belong to individuals or groups within your business, or exist at the organisational level. You can also share it with different organisations.

You can apply business knowledge in many organisational areas and competencies, from financial management and organisational governance to market analysis, strategic planning, and human resources.

Examples of business knowledge

Examples of knowledge that already exists in your business include:

• the skills, competencies and experiences of your workforce
• the designs and processes for your goods and services
• the industry or market data you've gained from research
• your files or documents (electronic or otherwise)
• your customer data or information on suppliers and stakeholders
• your plans for future activities, such as ideas for new products or services

Importance of business knowledge

Knowledge has great value since it is inherently unique to your organisation. It shapes and drives your business activity, your ability to sell or do more, and stand apart from your competitors.

Individual knowledge is easily lost, especially when key employees leave. Make sure that your employees share knowledge and skills, and pass them on to their successors wherever possible. For example, you can:

• hold brainstorming sessions
• organise training courses
• maintain up-to-date documentation about processes and procedures

See more on sharing knowledge in business.

What is knowledge management in business?

Knowledge management is a structured way to capture and use your business’s knowledge to create value. It helps you create, share and apply knowledge across your organisation. 

Your knowledge base includes what you know about customers and your employees’ skills and experience. Using this knowledge well can improve efficiency, reduce risks and help you make the most of opportunities. This is known as the knowledge advantage.