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46 Chapter 2

Knowledge Organizational
production knowledge

Broadcasting

Searching
Knowledge
integration
Teaching

Sharing

Figure 2.8
Knowledge integration processes in the McElroy KM Cycle

and customers for them, it must have resources (people, capital, facilities), and it must
have the ability to act. The third point is emphasized in the Wiig KM cycle.
Knowledge is the principal force that determines and drives the ability to act intel-
ligently. With improved knowledge, we know better what to do and how to do it.
Wiig identifi es the major purpose of KM as an effort: “ to make the enterprise intelli-
gent-acting by facilitating the creation, cumulation [ sic ], deployment and use of
quality knowledge ” (Wiig 1993, 39). Working smarter means that we must approach
our tasks with greater expertise — that we must acquire as much relevant and high-
quality knowledge as possible and apply it better in a number of different ways.
Working smarter “ involves making use of all the best knowledge we have available ”
(Wiig 1993,51).
Wiig ’ s KM cycle addresses how knowledge is built and used as individuals or as
organizations. There are four major steps in this cycle, as shown in fi gure 2.9 :
1. Building knowledge
2. Holding knowledge
3. Pooling knowledge
4. Applying knowledge