Knowledge Management or KM introduces the idea of taking knowledge and systemising it for the benefit of all users. It is defined by David Snowden as "The identification, optimisation and active management of intellectual assets". Hugh Wilmott comments: KM is a slippery term. It has become widely used but lacks any unified, consist- ent meaning. Nonetheless, knowledge is being identified as a key asset, and changing methods and forms of work organisation are transforming the way in which knowledge is produced, shared and valued.
In the 1960s Peter Drucker talked about the "knowledge society". He said in future the basic economic unit will be knowledgE Nonaka and Takeuchi looked at two types of knowledge, tacit and explicit, based on experience in the job (uncodified knowledge) and written process knowledge (codified). They also said that knowledge was the key asset for the future. More recently, Thomas Stewart believed t at intellectual capital is the hidden asset that comes from knowledge. e are three types: a) human capital - managers' talent; b) customer tal - trademarks/brands, relation- ships, databases; and c) structural cap su as process know-how. The drive for knowledge ma er nt comes from the pace of change, the need to reduce supply chaiyco�ough know-how, the growth of IT as an enabler, and the reco the value of the past in predicting future success of projects.