- The financial models used by the organizational for business purposes are
unable to reflect upon the dynamics of knowledge. - IT alone cannot support in strategic management within the organization.
Holbech (1999) comments that “technological capital consists of techniques, copyrights,
patents and other technological innovations developed over time”. According to Holbech
(1999), the Human capital is the capabilities of the individuals required to provide
solutions to customers. Scarborough and Carter (2000) explains that knowledge
management is in fact organized activities by the management to create, communicate
and exploit knowledge to strengthen the organization (quoted in Armstrong, (2006)
Customer capital is the depth and width, the attachments and the profitability of
customers. Holbech (1999), comments that “Structural capital is the resources,
infrastructure and capability of organization to meet market needs to pre-empt
innovations and societal change processes”. Explaining the importance of intelligence
systems for the organizations Holbech says-
Any organization operating in the current turbulent business environment
would require robust intelligent systems. The internal systems are
sometimes not enough. External intelligence systems which usually get
overlooked could be an important source for capturing and synthesizing
industry reports, business trends, market information, etc. All this could be
highly valuable to an organization; Internet, news-clipping services,
clipping services for providing articles. (1999)The different types of knowledge embedded in different sources of the organization
require to be linked in a way that will support in development and implementation of the
organizational strategies.
There are two types of knowledge that include explicit and tacit knowledge.
Explicit knowledge is the one that exists in the form of recorded data/information. It
could be accessed and understood easily. It provides hard facts for decision making or
planning. The tacit knowledge is the undocumented/unrecorded information that exists in
the minds of the individuals. It is based on individuals’ perceptions, beliefs, values and