Definition:
Knowledge applies to many aspects of a business. It is a mix of contextual information, trade secrets, standard operating procedures, HR policies, experiences, and values of an organization. Knowledge management involves identifying and organizing these practices and finding the best, most efficient way to apply, operate and continuously improve them across internal and external suppliers of human resources and managed services. In short, knowledge management targets the classic problem of “recreating the wheel” and uses people, process, and technology to save effort, improve quality, increase speed, improve governance risk management, and compliance (GRC), and reduce labor costs.
Technical Requirements:
In supply chain management, business organizations use knowledge management to populate “global resources” with “global knowledge” used in conducting “global business.” Internally, the organization needs knowledge management tools and practices such as employment manuals, employment agreements, patenting policies and licensing strategies to ensure that the employees develop and preserve their knowledge bases for the employer’s benefit. Externally, the organization needs non-disclosure agreements, technology licensing and technology transfer policies and procedures and strategies for isolating and protecting the rights of third parties (including outsourcers) and ownership rights in the organization’s proprietary rights licensed to third parties (such as outsourcers).
Early “lift-and-shift” outsourcing relationships used knowledge management to preserve and transfer process knowledge to the service provider, who then performed the process on an outsourced basis. In such knowledge transfers, the business organization risks losing persons capable of operating the process or improving it. This risk can be mitigated through appropriate organizational design (retaining competent people in various locations with knowledge management skills) and contract management (relating to intellectual property).
As service providers develop skills that are generic to an industry, they become repositories of “best practices” that compete with the internal repositories of business organizations. Service providers with such processes begin to act as software developers, not merely providers of staff augmentation or temporary labor. Such “office automation” challenges the business organization to limit investments in generic knowledge basis and instead promotes and challenges the organization’s investment in individuals skilled in doing the business and using the generic tools. In short, many administrative functions are being incorporated into a software-enabled service delivery model, and in-house personnel will no longer be performing repetitive functions that are purely generic, administrative, repetitive and do not generate top-line revenues.
Benefits:
Having other organizations run the knowledge management can present excellent benefits to efficiency and time management. Outsourcing will allow a company to obtain unique processes in Knowledge Management that in house management may not allow to be seen. It gives an organization the ability to obtain an outside prospective on their daily processes that may not be found when keeping it in house. Implementing outsourced knowledge management practices allows employees to obtain the information necessary for their job assignments, and with less hassle. It allows for transparency between the management of a company or organization, and the other employees.