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Introduction to Knowledge Management 21

Intellectual capital
Increasing complexity

Political negotiation
Strategic Mainly subjective

Tactical

Technical integration
Operational Mainly objective

Figure 1.5
Three levels of intellectual capital

Capabilities are potential core competencies and sound KM practices are required
in order for that potential to be realized. A number of business management texts
discuss these concepts in greater detail (e.g., Hamel and Prahalad 1990 ). It should be
noted that the more valuable a capability is, and the less it is shared among many
employees, then the more vulnerable the organization becomes should that employee
leave.

Organizational Perspectives on Knowledge Management
Wiig (1993) considers knowledge management in organizations from three perspec-
tives, each with different horizons and purposes:
Business perspective Focusing on why, where, and to what extent the organization
must invest in or exploit knowledge. Strategies, products and services, alliances, acqui-
sitions, or divestments should be considered from knowledge-related points of view.
Management perspective Focusing on determining, organizing, directing, facilitating,
and monitoring knowledge-related practices and activities required to achieve the
desired business strategies and objectives
Hands-on perspective Focusing on applying the expertise to conduct explicit knowl-
edge-related work and tasks