1.0 Introduction. Nowadays, Knowledge is important because it can control access to opportunity and advancement. Knowledge management is important because it is an effective application can be used to make a good decision and a source of business success. Knowledge management is important as a concept of organizational knowledge in order to make a good and quality decisions. People play a main role in this concept. By gaining a new knowledge, it is not only can improve the performance of the organizations, but it is also helping the organization create a new business and gain more profits.
Knowledge is the most important factor of capital, land labor and production process in the organization. Knowledge management becomes more essentials for the sustainable development of organizations. Knowledge Management helps the organizations to generate their intellectual capital and knowledge-based assets. The value can be obtained by sharing information with people in the circle of organization such as share partner, customer and the employees itself. One important thing for the companies need to know is to understand of what they know.
This paper also discusses about 4 types driving force of Knowledge Management which are Increasing Domain Complexity, Accelerating Market Volatility, Intensified Speed of Responsiveness, Intensified Speed of Responsiveness and Employee Turnover.2.0 Definition of KM. Knowledge Management also define as the capturing, organizing and storing of knowledge and experiences of the individual workers and groups within the organizational and making this information available to others in the organization. It may include strategies, process designed to identify, structure, capture, value and share an organization’s intellectual assets to enhance the performance and competition among the competitors. Besides, Knowledge can be shows during the entire workforce to achieve a specific organizational aim, objectives, and target. Knowledge Management focused on managing important knowledge that may reside solely in the minds of organizations’ experts. 2.1 Knowledge Management using the power of mind and brain. Knowledge Management is about using a power of mind, thinking and brain in order to make sure the organization in a systematic, structure, and on track to achieve the effectiveness and gain a competitive advantage among the competitors and encourage more innovations (Serban and Luan 2002). Some of the reason why Knowledge Management is needed to increase the organizational performance by designing and implement the tools, processes, and also culture to improve the creation, sharing by using a different type of knowledge which are critically used for a decision- making (Depres and Chauvel 2001). Furthermore, knowledge management is based on organization’s most valuable resource of information and knowledge in their organization. 2.2 Knowledge is a way for understanding all information and data. Beckman (1997) found that knowledge is way for understanding all about information and data to actively enable company performance, problem solving, decision-making, teaching and learning others. Since nowadays a successful company has its own ability to learn faster, to change to be a better and gained experience quickly turned into action for the organization. By doing this, the organization can provide a good advantage over the competitors and survive in the market. (Trninic, 2008). In organization also, Knowledge Management is an integrated medium approach to develop, discover, deliver and absorb the knowledge inside and outside the organization itself through an appropriate manner management process to meet current and future needs (Ouintas et al. 1997) 2.3 Knowledge Management is a process of transform data into knowledge and capital. The advances of information technologies helps and encourage the development of efficiency Knowledge Management as a tool of using databases and collaborative software (Hassanian et al. 2015).Knowledge Management also related to the concept of intellectual capital. It is considered as the most precious asset. There have three types of intellectual capital which are human capital, such as knowledge skills and capabilities of the individual itself. Next, organizational capital such as the institutionalized knowledge and codified experience residing in database and lastly social capital or the knowledge embedded in relationships interactions among individuals. (Subramaniam and Youndth 2005). 2.4 Tacit Knowledge and Explicit Knowledge. In an organization, knowledge is divided into two types of knowledge which are Tacit Knowledge and Explicit Knowledge (Nonaka, 1991). Tacit knowledge consists of the hands-on skills, experiences, something that cannot be copy and else. (Polanyi 1973). Tacit knowledge approach Knowledge Management to focus on understanding the kinds of knowledge that individuals have within a competitive agency, moving individuals to transfer and manage the knowledge creators and carriers. While explicit knowledge, is a data and information encoded, something than can be copy and documented as content component of the explicit knowledge (Mahmood et al.2011). Explicit knowledge approach to Knowledge Management emphasizes the processes for articulating knowledge held by employees at a competitive agency, approaches for creating a new knowledge and the development of systems to disseminate articulated knowledge within the competitive agency (Smith 2001). For effective Knowledge Management in the competition agencies, both Tacit and Explicit Knowledge approaches should be considered. Based on S.Gueldenberg and H. Helting had expressed that both Tacit and Explicit knowledge are related. Furthermore, both types of knowledge are important in knowledge process and creation (Gueldenberg and Helting 2007).