Value of Knowledge Management Systems: A Review Paper

One of the basic knowledge management questions is how organizations can turn the knowledge that they have into something that adds value. While there is general agreement on the importance of value creation through knowledge generation, diffusion and utilization, the concept of value in the context of knowledge management has not been defined. This fundamental issue is complicated by the different paradigms underlying KM such as information management, strategic management, business process re-engineering, philosophy and economics. Defining value in the context of KM will lead to better understanding of the potential sources of value creation from knowledge management and better management of knowledge assets. It will inform the measurement of knowledge and its impacts on organizations. It will lead to recognition of the contribution of knowledge assets to organizational success. This paper provides a comprehensive literature review reporting on prior research on value creation and how this can improve the understanding of value in the context of knowledge management. The subject of value is very complex due to its subjective nature, multiple levels of sources and users and a multitude of underpinning disciplines and perspectives. Current research has called for the need for integration of these perspectives and greater understanding of the value dimensions at different levels. This paper presents a preliminary holistic framework of value dimensions in order to gain better understanding of the value created from KM initiatives from multiple perspectives at organizational level. This framework can be used to map out specific value priorities for organizations and align them with measurements that are set for evaluation of KM initiatives.