The difference between an information value chain and a knowledge value chain is that an information value chain views that technological systems are the key components of an organization. Value chains also view employees as passive processors that implement best practices in information data bases. The knowledge value chain views employees as key components that are involved in continuos assessments of information that are developed in technological systems. Employees in this view of the knowledge value chain are constantly making decisions on what the best practices to implement in order to stay successful. What practice was used yesterday to complete a task might not be the best practice to use tomorrow.
Human knowledge is what needs to be used in order to compete in a competitive market.
The most important issue for an organization to consider is to focus on the creativity of its employees. Employees that continuously interact with the external environment understand what changes are taking place and what needs to occur within the company to stay successful. Knowledge management is a continuos process of learning and unlearning and what best practices will be used within the company. If an employee can understand the knowledge management process on what the best practices are, then the process of reengineering, down sizing and makeovers of an organization will be minimized. Knowledge management is the process of using human innovative ideas to make change and keep a company successful.