Dr Ann Hylton is the founder and CEO of HyltonAssociates. She has developed the company's profile to address the urgent need for better knowledge management in any sized company. She believes that securing the knowledge in a business is one of the most important elements of any 21st century enterprise.

In her role as head of Hylton Associates, Dr Hylton networks tirelessly in the interest of building an increasingly strong team of associates and partners to move the company forward. Her hard work over the past year has yielded much, as HyltonAssociates can now boast a proud team of leading information and knowledge management and information security professionals.

Dr Hylton has a strong academic and working background, including a PhD in Systems Science. Her career path is rich and varied. She has held senior management posts in the areas of information & knowledge management, consultancy, research, project administration, public relations, and health information management. In addition, she has worked as a visiting lecturer, journalist and trainer. Prior to forming HyltonAssociates Dr Hylton was Head of Information for a Research Institute in the UK. 

HyltonAssociates CEO has profound knowledge and skills in Information Management and is highly versed in Information Technology. Over the past 10 years she has worked ceaselessly to develop her knowledge and skills of the information age and the ramifications of this knowledge driven economic era. In the last few years her interest in information and knowledge security has grown as a natural course.

In a rapidly changing global environment, Dr Hylton is never satisfied to rely on her impressive knowledge base. She is a natural knowledge-seeker, and continues to update her knowledge and skills on a daily basis and to build on her large reservoir of contacts through networking.

In the little spare time that she has, Dr Hylton is authoring a book on Knowledge Management, which she hopes to publish sometime soon.

Email - ann@hyltonassociates.com
website – www.HyltonAssociates.com

Smaller-sized Companies Also Need Knowledge Management
by Antoinette Hylton

Typically a knowledge management process involves: knowledge capture; knowledge organizing and knowledge storage; knowledge distribution; knowledge sharing. Ultimately, successful knowledge management results in the best possible means to apply and leverage the knowledge that has been captured, organized and stored, distributed and shared. It means that very little of the company's highly valued intellectual capital has escaped the knowledge management net. Virtually all the knowledge within the enterprise is harnessed, and will be used as part of the company's core business and competitive intelligence strategy.

Generally, knowledge management software developers and vendors do not target smaller-sized companies for their tools. The reason for this is purely market driven. Smaller-sized companies are apparently not a ready market, and the large companies' market is far from exhausted or saturated.  Most vendors, therefore, view smaller sized companies as the more difficult to penetrate markets. 

However, the lack of attention given to smaller-sized companies by knowledge management vendors is not in the least indicative of the urgent need for these kinds of tools and solution by these somewhat 'poor cousins' of the industry giants. It is obvious that the smaller-sized company also needs to capture and intelligently exploit its knowledge.  

Unequal Access to Knowledge Management Tools

Unquestionably smaller-sized companies need knowledge management just a much as the giant enterprises. The current demand for knowledge management services is the result of the high uptake by large businesses. Innovative large companies and organizations now place great emphasis on knowledge management as part of their core business processes. These corporate giants have embraced knowledge management as part of their business strategy, including examining how they can better manage their intellectual capital. 

When software vendors minimize or passively downplay the importance of smaller-sized companies by paying them very little attention, they are in effect denying them equal access to the sophisticated knowledge management tools and solutions on the market. They are helping to keep them out of the buoyant and business enhancing knowledge-driven market.

There is one overriding reason why corporate giants have implemented knowledge management strategies; it is essentially to gain a competitive advantage in the knowledge economy. They seek the best methods to audit and capture knowledge regarding both the explicit and tacit knowledge within the enterprise. They also want to improve their ability to acquire and create new knowledge quickly. 

The question again is "Why should anyone believe that smaller-sized companies are not equally in need of knowledge management for the very same reasons that the large corporate bodies need it?"

Smaller-Sized Companies Are Not Blame Free

Software developers and vendors are somewhat justified in their "deliberate" shunning of smaller-sized companies. After all smaller-sized companies themselves are often not seeking knowledge management tools and advice.  Many do not even know that KM exists.  Of those who are aware of the power of knowledge management, very few feel they have the necessary "infrastructure" to implement the KM systems and many feel they have far more pressing priorities and needs. 

Foremost in the minds of senior managers of smaller-sized enterprises is the financial feasibility. Most smaller-sized companies feel that the knowledge management return on investment [ROI] figures do not generally add up, so knowledge management is relegated to the level of a "luxury item," and therefore something to be considered in the future. 

Knowledge management is still very much viewed by smaller-sized companies as a "big boys thing," or even as a fad, that only the giants can afford to indulge in. One can perhaps empathize with the "poor cousin" smaller-sized companies who adopt the "wait and see" position with regards to the uptake of knowledge management. It is often a case of "Let the rich big boys test the waters, and when they have validated it's worth to all businesses, including smaller-sized ones, then we will act."   In the meantime, they continue in the way they know best: losing vital knowledge capital and competitive advantages daily. 

Such a position by senior management of smaller-sized companies is likely to have strong support from finance directors/managers. For, many say, "If validation of the usefulness of knowledge management as a business enhancer never comes, then at least we did not waste money, lots of money, on something that would not really add value to our business or give us any measurable competitive advantage."   On the other hand, "If the big boys do give it the green light, then we can jump right on the train, knowing that we are adopting a tried and tested solution, while having saved a lot of money by not having come on board too soon. We all know that software price plummets drastically with age and increased uptake."  Is this really the wisest position? 

The questions we might raise is: "Is this sound and valid reasoning? Does it make sound business sense for the smaller-sized company or is it one cautious stance too many?" 

There can hardly be many business intelligence practitioners and consultants who subscribe to the "wait and see" position that many smaller-sized companies have taken. Why? Because it does not make good business sense in what is essentially a knowledge driven economy. Smaller-sized companies should adopt the policies and practices of the larger, more prosperous companies. They have to begin to understand the importance of substituting intellectual capital for "normal balance sheet alternatives." They should understand that they need knowledge management just as much as the larger companies do, and they need it now, not in the distant future. They must have it NOW.  

Their phantom barriers against the implementation of a knowledge management system in smaller-sized companies is shrouded in one factor: their  cultural resistance to change.

Knowledge Management Is Not New To Smaller-Sized Companies

Contrary to the popular modern stance, smaller-sized companies were the forerunners of knowledge management, as they have been practicing knowledge management since ancient times. History shows that as small business moved towards growth, and the eventual development of ancient international business activity, 0.

knowledge of foreign markets, customs, customers, trade winds, and pirates, were what distinguished winners from losers.  This was knowledge management in action. And this was knowledge management initiated, implemented and practiced by smaller entrepreneurial businesses. 

Knowledge management is currently being marketed as a "new" business intelligence-enabling tool. We are led to believe that knowledge management is an invention of the last decade, but in fact it has been part of the core business process/strategies as far back as one cares to venture. Academics and other knowledgeable persons will verify that knowledge assets within a companies and organizations have been long considered vital and these assets should be formally and strategically managed. 

The important difference with modern day, 'new style' knowledge management is the changed environment in which businesses operate, and the high technology enabling tools that is available to help the knowledge management process.  

Knowledge assets are essentially the knowledge regarding markets, products, technologies and organizations that a business owns or needs to own and which enable its business processes to generate profits and add value. It therefore, comes as no surprise that managing these assets have been key priorities for all business models over the centuries.  

Knowledge Management Model is Already Well-suited to Smaller-sized Companies

Modern day knowledge management has been targeted at large companies and large organizations. However, in practice, knowledge management within giant enterprises has been mainly departmental. The general practice has been to adopt knowledge management to individual, often autonomous, departments, with the intention or hope of making the tried and tested departmental model applicable enterprise-wide. Most often the size of and style of operations mirrors that of a smaller-sized company. 

Practitioners of knowledge management within large companies and organizations would ideally want to take a more holistic and enterprise-wide approach. But practicality often dictates otherwise. Thus, traditionally, the systematic capturing, transferring and sharing of knowledge have primarily been practiced in what is essentially a smaller-sized company environment.  

Within the smaller-sized company, and departments within large companies, it is perhaps significantly easier to gain a valuable understanding of the formal and informal knowledge communities, than it is within the much larger, and more complex companies. Smaller-sized companies are already likely to actively have in place a culture that is more in tune with knowledge sharing, and sharing of resources in general.

Smaller-sized Companies Understand the Importance of Social Capital

The notion of social capital is currently receiving great attention in knowledge management circles. People are now beginning to realize  that wealth can be derived from contacts, connections, and the ability to work well with others. Often an organization's most valuable knowledge resides not in explicit forms such as documents, database records and web pages, but in employees' experiences and know-how.  

This is very much in line with the smaller business practices, where growth and prosperity is, in large part, due to the tight, honor-based relationships between employees and external contacts and partners such as other small firms and sub-contractors. Technology, by itself, is merely an enabler. The real revenue comes from a change in mind-set, organization, and culture. 

Whether they realize it or not, smaller-sized businesses have a head- start on larger companies where social capital is concerned. The all-important human aspect of knowledge is embedded in social relationships, and traditionally employees within smaller-sized companies tend to have greater and more genuine social relationships than is found in large enterprise. Large companies, can, indeed, learn from them.  Smaller-sized companies are well poised to extend their knowledge processes to customers and suppliers without feeling that their business intelligence is threatened. 

There seems little doubt that smaller-sized companies have an intrinsically great appreciation of knowledge as a corporate asset. Traditionally their business practices have had a greater reliance and dependency on tacit knowledge than larger businesses. In this modern, knowledge-centric business environment, smaller-sized companies have to embrace knowledge management tools that will help them leverage that tacit knowledge within the business.

Smaller-Sized Companies Must Have Knowledge Management

While it is true to say that smaller-sized companies have traditionally had a great understanding of the importance of tacit knowledge for their business enhancement, they have fallen behind when it comes to managing or leveraging the knowledge assets they possess. They have failed to fully exploit these highly valued knowledge assets, in order to help their businesses gain the kind of competitive edge that is so vital in this fast-paced knowledge-driven economy. This is the reason that smaller-sized companies must get back on the knowledge management track, as large companies seek to tighten their control of the knowledge market. 

The challenge for the smaller-sized business of deploying the knowledge assets of the company to create the necessary competitive advantage has become increasingly business critical. The knowledge driven, rocket-paced, global marketplace in which the smaller-sized company must operate is more vibrant and competitive than at any previous time in recorded history. In addition, technological innovation improves at such a rapid rate, that to remain viable in the market place, smaller-sized companies must quickly capture, assimilate and use effectively 'just in time' knowledge.

Smaller-Sized Companies Must Follow Where Larger Companies Lead

It is no longer the case that smaller-sized and larger-sized companies operate in vastly different market places. The phenomenal growth and uptake of the Internet/world wide web has narrowed the gap-differences significantly. Some might even ask, "What gap-differences?"  

 Here are just a few of the reasons why smaller-sized companies must walk along the same path as the bigger and 'wiser' enterprises. 

· Large corporations now operate as customer/client-centric businesses, and have organized their operations with focus on creating customer/client value. The smaller-sized business must do the same. 

· Large companies are replacing the informal knowledge management of the staff function with formal methods in customer aligned business processes. Small companies must do the same.  

· Knowledge is perishable. The shelf life of expertise is limited because new technologies, products, and services continually pour into the marketplace. No one company or individual can hoard knowledge. People and companies must constantly renew, replenish, expand, and create more knowledge. 

· Knowledge within companies resides in many different places such as: on computers in databases, filing systems and in the heads of employees. Very often one part of an enterprise repeats work of another part simply because it is impossible to keep track of, and make use of, knowledge in other parts. Within most smaller-sized companies this is indeed a problem area. 

·Large companies have honed in on the fact that it takes a long time for employees to gain the level of experience of the company's key processes to be able to translate them into valuable explicit and tacit knowledge. They also realize that their employees no longer have the luxury of time to acquire the knowledge. Smaller-sized companies must also hone in on these basic modern day truths. 

· Even within large, "stable" companies that offer much opportunity for personal development, the job for life culture is fast disappearing. Highly experienced and knowledgeable employees are taking advantage of the new opportunities, in a globally shrunk, highly accessible market place. The knowledge loss resulting from this culture change is phenomenal, and large companies are taking action to capture and store the knowledge assets of their employees before they leave the company. Smaller-sized companies must follow this example.  

Smaller-Sized Companies - No More Excuses Please

Smaller-sized companies can no longer excuse their tardiness or procrastination where implementation of knowledge management is concerned. Larger companies have done most of the groundwork for them. They have invested heavily in research and trials, including pioneering knowledge management software. Smaller-sized businesses had better start moving toward the open gate now, as in all likelihood, if they delay the gate will shut on them, and they will be permanently locked out of the global knowledge-led business market. 

There is no foreseeable movement away from the knowledge driven economy, so very few of those companies that do not place knowledge management high on their business agenda will live to tell the tale.

The Practical Benefits to Smaller-Sized Companies of Knowledge Management

Among the core benefits to a smaller-sized business development and improvement of an enterprise wide knowledge management system is a greater level of awareness of the company's knowledge. This improved awareness goes a long way towards saving time and effort, business entities that carries a premium price in today's fast-paced working environment.  

Linked closely to the improved awareness is greater accessibility among the staff. This allows virtually all individuals within the company to combine knowledge and experience in the context of their own roles. Knowledge within the company also becomes more easily available, and this knowledge can be used when and where it is needed. Information technology tools now make it easy for employees to work away from the office, or base, just as effectively as they would on-site. With good knowledge management, 'just-in-time' information and knowledge is available whenever and wherever needed.

And Finally Why Smaller-Sized Companies Need Knowledge Management

Smaller-sized companies need knowledge management for virtually the same reasons that larger ones do. The world has changed, and continues to do so. There are more contenders for every dollar of profit, which puts great pressure on companies, large and small, to innovate and to develop products rapidly. Both innovation and rapid development require accelerated use of knowledge. 

Business intelligence practitioners worldwide generally agree that In this knowledge-driven global economy, knowledge itself is a commodity that offers the only sustainable competitive edge. 

Economists, business strategists, and business school professors are more and more united in the belief that what you know and how you use what you know are the deciding factors for successful companies. They are realizing it's not technology or the quality of management they need to remain competitive. Companies have to know something and then coordinate and use what they know. They also have to know new things quickly. 

Smaller-sized enterprises also need to know what their knowledge assets are then how to manage and make use of these assets to get maximum return. If smaller-sized companies are slow on their feet they will fail to respond competitively to the new global markets. 

Conclusion

There are a plethora of knowledge management tools on the market. While most tools seem to be targeted at the large companies, there is no shortage of software that is suited to any smaller-sized company.

A smaller-sized company must begin by employing the services of a consultant that understands the difficulties and constraints facing business that do not have large budgets. 

Unfortunately there are not many consultants who specialize in knowledge management for the smaller-sized enterprise, as a single unit, and these would be the preferred advisors. However, any knowledge management consultant who has consulted on the implementation of solutions in departments within large enterprises should be able to adequately serve the smaller-sized business market. The problem often centers on the fact that smaller-sized companies are not willing to pay the premium rates offered by large companies, which limits their choices. However, it is assumed that as more smaller-sized companies choose to include knowledge management as part of their core business, then more consultants will become interested in serving that market, and more knowledge management tools will be targeted at the smaller-sized enterprise. There is much room for optimism.