Knowledge a combination of instincts, ideas, rules, and procedures that guide actions and decisions. The success of knowledge in explaining the way things work is an important criteria in the validity of knowledge. The transfer of knowledge is important in the maintenance of any organizational structure. Some knowledge may be codified and explicitly laid out, such as procedures and instructions to accomplish tasks. This knowledge is based on past experiences applied to similar current problems.
Some knowledge is intuitive and based on socialization.
Used when problems to be solved are unique. Any organization thinking about downsizing, needs to also think about how to ensure that knowledge transfer that had been accomplished by middle-managers will continue in their absence. People using an information system must have enough knowledge to use the information that the system produces. Knowledge can be built directly into the system's procedures, forcing the people using the system to conform to certain standards. Expert Systems, Neural Networks, Fuzzy Logic, Natural Language Processing and other types applications classified as artificial intelligence can be described as narrowly focused knowledge systems.