Analysing the value of knowledge management leading to innovation

In today's fierce business competition, innovation fuels organisational growth, drives future success and is the engine that allows businesses to sustain their viability in the new knowledge-based economy. Innovation does not require genius, but it does require a system-wide dedication to pursue unique opportunities. Since the specific requirements and critical factors needed to support innovation are only recently being explored, this paper seeks to analyse the value of effective Knowledge Management (KM) leading to innovation. KM has recently received considerable attention in the computer information systems community and is continuously gaining interest in industry, enterprises and academia. As we are moving into an era of ‘knowledge capitalism’, knowledge management will play a fundamental role in the success of today's businesses, This paper presents the key aspects of the role of KM in the enterprises, explores the relationship between KM and innovation, and gives answer to the difficult question: ‘Can effective KM create more successful innovation and how?’