**5.2 Concept of "crucial knowledge"**

In this subsection, we suggest the following definition of "crucial knowledge." Crucial knowledge is knowledge that, regardless of its nature, is tacit (embodied within the head of a person or embedded in an artifact) and explicit (incorporated into a document or another physical support):


Crucial knowledge supplies essential resources that are used by value-added processes activities of an organization. Value-added processes are derived from the value chain described by Porter [25] who identifies nine value-added activities that he classifies into two main categories. The "primary activities" are (1) inbound logistics, (2) operations, (3) outbound logistics, (4) marketing and sales, and (5) services. The "support activities" are (1) business infrastructure, (2) human resource management, (3) technological development, and (4) supplies. In this way,

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*Toward Management Based on Knowledge DOI: http://dx.doi.org/10.5772/intechopen.86757*

essential factors of performance.

*Management based on knowledge: the core MBK processes.*

**Figure 2.**

We describe these processes below.

value-added processes represent the organizational context for which knowledge is

The core MBK processes answer the problem of capitalization on company's knowledge. Thus, we have identified four core MBK processes corresponding to the resolution of the categories of problems: locating core MBK process, preserving core MBK process, enhancing core MBK process, and actualizing core MBK process. Each of these core processes contains sub-processes designed to solve all the problems involved. These sub-processes are integrated into the overall management

The following description of the core MBK processes is not necessarily cyclical in nature. Each category contains, in itself, a set of problems that can be addressed in a different order depending on the situation and context of each organization.

• The *locating, core MBK process***,** deals with the location of crucial knowledge, that is, knowledge (explicit or tacit) essential for decision-making processes and for the progress of the value-added processes. It is necessary to identify it, to locate it, to characterize it, to make cartographies of it, to estimate its economic value, and to classify it. One can mention our approach named GAMETH® [45] (pp. 271–285), specifically aimed to support this process.

• The *preserving, core MBK process***,** deals with the preservation of know-how and skills: when knowledge can be explicit, it is necessary to acquire it with the bearers of knowledge, to represent it, to formalize it, and to conserve it. This leads to knowledge engineering activities notably described in Schreiber et al.

**5.3 Core MBK processes to capitalize on company's knowledge**

based on knowledge processes implemented in the organization.

<sup>5</sup> The expression "capitalization of knowledge" is strongly influenced by knowledge engineering in the early 1990s. We transformed it in 1993 following our meeting with Professor Shigehisa Tsuchiya [20]. Until that time we were talking about "capitalization of knowledge," and we changed to the expression "capitalization on knowledge." In fact, the technological approach to the knowledge engineering considers knowledge as an object, which is a reality external to the individual in the form of concrete and perceptible things. This is implicitly inferred by the expression "capitalization of knowledge." Subject to conditions specified in Section 2.3.1, we changed the paradigm considering that in organizations, knowledge created and used is above all a knowledge related to action that is specific to people and cannot be thought of as an object, hence the expression "capitalization on knowledge."

*Toward Management Based on Knowledge DOI: http://dx.doi.org/10.5772/intechopen.86757*

**Figure 2.**

*Current Issues in Knowledge Management*

increasing the organization's capital" (p. 141).

into a document or another physical support):

uted, inimitable, and difficult to transmit.

3.Has a high cost and/or high acquisition time.

**5.2 Concept of "crucial knowledge"**

**5.1 Capitalization on knowledge problem within organizations<sup>5</sup>**

In what follows, we propose to define the problem of capitalization on knowledge within organizations, irrespectively of the different currents of influence that contributed to the emergence and propagation of the concepts of "capitalization of knowledge" and "knowledge management." So, we define the concept of capitalization on knowledge as follows [44]: "Capitalization on knowledge within the organization means considering some knowledge used and produced by the organization as a storehouse of riches and drawing from these riches interest that contributes to

Several problems co-exist. These problems constitute a general problem focused on crucial knowledge. They are recurring problems with which the company was always confronted. We classified them into four categories and their interactions, which are represented in **Figure 2**: Locate crucial knowledge, preserve crucial knowledge, enhance crucial knowledge, and actualize crucial knowledge*.*

In this subsection, we suggest the following definition of "crucial knowledge." Crucial knowledge is knowledge that, regardless of its nature, is tacit (embodied within the head of a person or embedded in an artifact) and explicit (incorporated

1.Contributes to the added value and performance of organizational and production processes or to the innovation of products and services or to the

2.Is vulnerable, that is, rare, specific and unique, inaccessible, poorly distrib-

4.Can cause an unacceptable risk for the strategy and life durability of the firm, by weakening its core competencies, endangering the performances of its busi-

Crucial knowledge supplies essential resources that are used by value-added processes activities of an organization. Value-added processes are derived from the value chain described by Porter [25] who identifies nine value-added activities that he classifies into two main categories. The "primary activities" are (1) inbound logistics, (2) operations, (3) outbound logistics, (4) marketing and sales, and (5) services. The "support activities" are (1) business infrastructure, (2) human resource management, (3) technological development, and (4) supplies. In this way,

<sup>5</sup> The expression "capitalization of knowledge" is strongly influenced by knowledge engineering in the early 1990s. We transformed it in 1993 following our meeting with Professor Shigehisa Tsuchiya [20]. Until that time we were talking about "capitalization of knowledge," and we changed to the expression "capitalization on knowledge." In fact, the technological approach to the knowledge engineering considers knowledge as an object, which is a reality external to the individual in the form of concrete and perceptible things. This is implicitly inferred by the expression "capitalization of knowledge." Subject to conditions specified in Section 2.3.1, we changed the paradigm considering that in organizations, knowledge created and used is above all a knowledge related to action that is specific to people and cannot be

thought of as an object, hence the expression "capitalization on knowledge."

ness units, and reducing its market share, in case of possible loss.

maintenance and improvement of a competitive position.

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*Management based on knowledge: the core MBK processes.*

value-added processes represent the organizational context for which knowledge is essential factors of performance.
