KM is at the basis of developing corporate competencies. A company’s competence is a combination of ‘knowledge assets’ and ‘knowledge processes’ that allows it to carry out its business processes. The effectiveness and efficiency of the company’s business processes depend significantly on the company having and being able to utilize its corporate competencies. As a result of having effective and efficient processes, business performance of the company will be greatly improved and there should be an increase in value generated for shareholders. In short, implementation of KM projects will help to improve the value-generating capability of a company.

 

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