Knowledge Creation Explained: How The Knowledge is Created?

Organizations need to be aware of the learning organizations to achieve the business’s primary goals. Knowledge creation is concerned with learning from others or grabbing the knowledge information from outsiders but is built using communication and people interaction among each other in the organization.

What is Knowledge Creation?

Knowledge creation is the process of creating new knowledge and acts as the heart of an organization’s competitive advantage. Knowledge creation serves as a building block in problem-solving. And competitive advantage is nothing but the technique a company must have over the edge of its competitors concerning their specific products or service offerings.

Knowledge creation is an essential aspect of decision-making and a key driver of innovation and progress in various fields. There are different types of knowledge creation, some of them are:

  • Exploration: This process to create knowledge entails obtaining information and data through a variety of techniques, including experimentation, analysis, and observation.
  • Innovation: The innovation process of knowledge creation involves utilizing existing knowledge in an innovative way to develop new products, processes, or services. Innovation requires methods, processes, high ambitions, and hours of collaboration across disciplines.
  • Combination: This knowledge creation involves combining previously acquired information  or ideas from several sources to create new insights or understanding.

Overall, knowledge creation is crucial because it helps individuals and organizations to understand and solve complex problems, and make better and more formal decisions over time to drive innovation and progress.

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First, we need to understand what’s the difference between the terms “knowledge” and “knowing” in terms of knowledge creation?

A product that works as an interplay between the knowledge and knowing is nothing but the knowledge creation. It was initiated by the innovators named Cook and Brown in 1999.

The shifting process between the knowledge owner and related act of knowing initiates using common practice, relevant action, and inspiring interaction among each other for the creation of new knowledge in the organization.

Finally, knowledge creation and knowledge sharing support hand-in-hand strategy. It means that knowledge provides an effective solution by using efficient practice, interaction, and, most importantly, education. In addition to it, the complete support of data and information that account for impressive improvements on decisions to build or create new knowledge or products.

The Role of Knowledge Creation

Role of Knowledge Creation
  1. Enabling and Encouraging Knowledge Sharing

    The formation of the knowledge typically included two sides. There is the tactical side, and on the second side, there is the strategic side.

    Tactical primarily deals with understanding the management concerning where and what forms knowledge to a great extent.

    An accurate and efficient emphasis on informal communication occurs with tacit knowledge, whereas a specific focus on a variety of IT systems identifies explicit knowledge. People work as a network to bring out the best radical ideas in each other through interactions.

    From the strategic perspective, the management must design the perfect environments and responsive processes that offer more readiness to occur in real-time.

  2. Appropriate Work Environment Creations

    The knowledge creation process provides an inspiring notion to create an interplay between the term knowledge and knowing. It specifically relates to appropriate training and education, but it helps the organization apply new knowledge using significant invention, good practice, and experimental methodologies.

    It leads to the theoretical concept that points to multiple work environments that do not strictly follow the rules and procedures. In addition to it, the accepting solution and support for environments require more trial and error facilities to gain unstructured interaction.

    In 2008, Botha et al., based on his prior experiences on computer science, pointed to the importance of the knowledge creation process using tacit knowledge and understanding the work environment’s primary need.

    By taking an example of innovation theory, one can quickly adhere to the team’s establishment to solve complex problems with ease. The best alternative is to opt for the cross-platform project teams in the organization.

    Such project teams are nothing but a group of experts that work together to solve a common problem in the organization, and the project leader handles all of them. If these teams get the freedom to work or experiment in their environment, it leads to a more significant catalyst for perfect innovation and new knowledge creation and invention using social media products and Social software products for better performance.

    On task completion, the members return to their previous role in the organization by keeping the aim to have knowledge sharing among the community of practice. The leaders of the project team itself can benefit by creating a bridge between different practice communities, and at multiple times serves as a good way to extend them on a large scale.

    These overall concept variations become a primary factor in innovation theory, most notably in project teams’ hypertext organization.

    Ikujiro Nonaka, Takeuchi initiated the hypertext organization, and Konno allows the businesses to make more interest in dealing with the structural and behavioural concepts of taskforce structures of service offering to a great extent.

  3. System Allocation To Support the Work Process

    There exist groupware systems that help the organization to facilitate communication to a great extent. The major constraint is that there should not be any interference with innovative processes or even communities of practices that encourage theoretical aspects.

  4. Providing Knowledge Workers with Accurate Data

    A specific, virtually identical IT system implementation can perform the storing, retrieving, organizing, and presenting the knowledge information and data smoothly in this competitive market.

  5. Ease in Dealing with Project Management

    Project management often referred to by the term “management of projects,” captures the cognitive framework to define and deliver the project or products on a large scale. It is gaining much more popularity using its own practitioners level, usually seen by various leading academics as a significant production management growth.

    The recent emergence of the projects contributes specifically to the society and GDP to recognize essential metrics like innovation vehicles, organizational changes, and even knowledge creation.

    However, any organization’s vital and innovation challenges are to provide optimum solutions to deliver the projects on time, and most importantly, budget-friendly.

    Generally, the project-based organizational learning offers an innovative opportunity for the individuals to perform adequate recognition of the robust process.

Knowledge Creation Process

The knowledge creation process is a multi-step process that includes the following:

  1. Exploration is the first stage to create knowledge that involves gathering information through various means, such as observation, experimentation, and analysis.
  2. Incubation is taking a break from active exploration and allowing the mind to process the collected information.
  3. Insight is where new understanding or insight emerges from the information gathered and processed.
  4. Evaluation is evaluating the new insight and determining its feasibility and potential impact.
  5. Implementation is the creative process that involves putting creative ideas or solutions into practice.

In general, creating new knowledge comprises acquiring and analyzing information, developing fresh insights, and applying those insights. For the creation of complete and inclusive knowledge, it is crucial to integrate personal knowledge and other’s perspectives.

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Use of IT in Knowledge Creation

Information Technology (IT) and knowledge sharing follow the same concept to support a varied degree of support to transfer various knowledge transfer among the organization. By utilizing IT, the period of time required for knowledge creation can be significantly decreased, resulting in quicker and more efficient decision-making.

The leading aspect is that the support is the best metric, and it should not conflict with any casual alliance.

The best example is the groupware systems that enhance the vital communication between the teams or individuals. Such communication support metrics, including video, audio, and text messages as per the individual consulting firm’s needs.

Use of IT in Knowledge Creation

IT systems typically deal with the latest data and information trends and provide a persuasive presentation to the senior authority. Now, the manager is solely responsible for better decisions applying to offer the inspiring knowledge creation process in order to create new knowledge.

Innovation processes and tools that do efficient service offerings or product design are also possible using IT tools, but it points to outside the scope of knowledge management.

To enhance business performance, the organization typically conducts experiments for creating new knowledge, particularly for project-based learning. It works by adding some arguments or testing assumptions to such lessons learned in the system, adopting some kind of database and new thinking capabilities to share the new mental models’ reference.

  1. Adapting Organizational Learning

    According to Davenport and Prusak, for companies interested in dealing with the new knowledge economy, the creation of knowledge and learning needs to apply parallelly.

    They typically use a competitive advantage source that allows the IT business to differentiate from other companies based on different dimensions like numbers of employees, consulting firm size, and even low-cost labour. The best organization possesses learning theories that include the development of knowledge to fetch appropriate learning with limitations.

    Such a field of knowledge still resides on responsive data, significant debate, and good controversy. There exists a distinction from multiple viewpoints of theoretical concepts on organizational learning approaches.

    In 2001, Antal, Child, Dierkes, and Nonaka came up with three models. The starting ones possess robust feedback loops between the business and its related working environment. At the same time, others define learning in necessary steps or phases. The steps usually start at knowledge acquisition and work towards more action and storage.

  2. Project-Based Learning

    The systematic and newest approach to collecting the knowledge or information from projects, including “post mortems functionality” and “lessons learned reviews,” are the significant factors of the excellent practice that helps multiple organizations motivate mid-project reviews.

    As per the recent literature research, most of the working orders include the standard approach to collect information exchange during the project initiation. It is represented by the term “Box 1” publications and highlights the importance of something that reflects more in the findings’ context to a great extent.

    Box 1 includes the operations to deal with the learning scenarios for project-based organizations using various best practices.

    Let us take a simple example. The performance of the project or application quickly improves using the following items:

    • Structured learning collection on the projects (According to Dixon)
    • Time-to-time project reviews
    • Understanding the tacit and explicit knowledge differentiation
    • Using repositories for person recognition for subject-matter areas
    • Making use of information management tools for information processing tasks
    • Dealing with the discipline to access knowledge to project repository teams before project task beginning

      Project management involves a robust process to deal with effective decisions for any case. It becomes the organization’s sole responsibility to define context and judgment for performing the perfect optimum solution.

      In addition to it, there exist multiple features of using the creation of knowledge invention in project-based practices to deal with the challenges specific to approaches related to knowledge management and project management.

      Knowledge management systems play a vital role in many organizational learning concepts. In simple words, knowledge transfer works in synchronization with knowledge generation.

  3. Integrated Conceptual Model

    In 1998, Boisot from the computer science department came up with an idea or invention to affect the learning and learning process in codified or uncodified knowledge. Furthermore, he suggested the literature review and grounded theory stage to help the IT systems improvise a business performance by applying his idea management skills on services or products.

    The organization’s project-based learning and grounded theory’s primary goal is to significantly form the essential factors that impact substantially individual and teams’ growth.

    In 2001, Byosiere & Toyoma initiated the “sense-making” approach to perform the robust exploration of the issues from the literature and field-based work environment. George Von Krogh’s approach supports the integration of the creation of knowledge theories to make it easy for individuals to accept or integrate new knowledge at an incredible pace.

  4. Understanding Core Elements for Organizational Learning to Happen

    Organizational learning typically occurs at the project-level by considering the several items relating to learning at an enterprise level. And also it can happen vice-versa.

    • Project Orientation: This element includes the organization’s basic operations and outstanding leadership team to support and control the overall project.
    • Learning with Sense-Making Relationship: It is nothing but the relationship between strategic experiences and frameworks to make sense in a specific order for project learning activities. In other words, it points to the interpretation of user experiences to provide the correct path with the primary intent of organizational perception.
    • Using Interface Environment for the knowledge creation process: This innovative element is derived from the SECI model. It contains various components for the particular knowledge creation process.

      Various forms of knowledge assets are discussed below that link organizational learning or knowledge creation for enhancing business productivity.

    • Experiential: Shared tacit knowledge using practical experience between company’s community members, suppliers, and customer demand
    • Conceptual: Uses images, language, and symbols to represent the explicit knowledge
    • Systemic:  Transferable knowledge is more explicit as it contains data or relevant documents through various combination effects.
    • Routine: Knowledge with backgrounds of the sense-making approach derives the narrative of the organization.

      These knowledge assets do not offer a relevant aspect to understanding the perfect business nature. It becomes quite apparent to measure the essential dimension of the knowledge mechanism to be invoked.

      As per the research on the hypothesized models, the knowledge creation process involves four stages in the SECI knowledge spiral in a balanced way.

  5. Stage Two Research Methodology

    A large number of propositions were developed to create the main base for stage two research ideology. The primary proposition inherits from the term “externalization,” which is element evidence of knowledge evolution in weakening learning and the knowledge process impacts on consulting service offering.

    In stage two techniques, a computable survey operation includes multiple questionnaires to form the conceptual model. The main purpose of such questionnaires is to search the leading modes of knowledge conversion terminologies for the organization. The questionnaires allow the individuals to perform variations in multiple responses, whether; it may be positive or negative.

    Such questionnaires data share among the discussion groups of members for the specific project in the organization. In addition to it, it also includes several workshops and online meetings to get the research team and their leaders available to perform the particular task and other attributes relevant to the business.

    The researchers can quickly view various project purposes and accurate discussion team discussions with each other to gain proper insights by the learner into the organization. These discussions with others help the organization research the courses that satisfy the individuals to create a feature-rich understanding like writing reports as per the business needs. Finally, it includes the research findings method that has various modes of knowledge conversions. Using such modification, an accurate analysis can identify an individual or company’s characteristics as whole project management.

  6. Business Categorization Analysis

    The perfect analyses of the research findings in complete detail can be easily performed using business basis categorization. These analyses’ main intent is to identify the knowledge conversion fit within the literature review and framework derived from grounded data as per the stage one research.

    • Business Type: Construction Company
      Consider the scenario that a new business owner has taken the responsibility of running a construction company. The new owner has a notable change in leading perceptions and attitudes that come into action using appropriate knowledge management. 


      It works as per the belief that it is more expensive and effective technology-based solutions in the working environment. To gain a competitive accomplishment and spile the organization’s knowledge, a process-driven solution helps to enhance business developments and effectiveness to a great extent.

      A system with multiple customer projects takes place to put people in parallel with expert professionals within the company. Based on the organization’s community feedback and the time taken to resolve that particular issue decides the consulting business performance.

      Such a system follows the tacit knowledge principle; the real question arises to perform the codification process of converting the tacit into explicit knowledge. The best recommendation that needs to follow is performing personal conversations and using appropriate incentives for better response.

    • Business Type: Pharmaceuticals Business in the Division of Facilities
      The company includes various project management guidelines and excellent tools to use internal and external sources during the research time. It incorporates the view of the company as a part of world-class project management facilities. 


      The explicit form of knowledge and learning approach particularly identifies the importance of tacit knowledge to a great extent. It possesses a role that helps people to play an essential impart in project management knowledge. It also includes the whole range of knowledge asset types, and respondents together form new standards and rollout activities.

      The essential strategy to disseminate the knowledge on project management typically uses the various modes of knowledge conversion. The stage one conceptual model follows the disconnect hypothesized edge between project-level learning and strategic level learning making the individuals perform participations for team colleagues.

      The knowledge creation process includes a strong indication of sense-making capabilities for the project-to-enterprise levels—a beneficial impact on the project performance for research indications to enhance business productivity globally.

    • Business Type: Consulting Engineering Company
      For multiple years, the organization to develop a knowledge management function helps the staff access the organization’s wisdom. Such information can either be explicit or specific to engineering and tangible information that helps the people or individuals handle the situations. 


      An inspiring result is a portal-based implementation to access corporate databases and data specific to the project. It also holds various communities of practice and leading subject-matter experts.

      It creates an edge between the supplier and the customer input more smoothly and with minimal interface numbers. Such a concept can eventually affect the organization’s working process with an inspiring outcome.

      The accessibility and flow of information, which are essential for efficient knowledge creation can also be influenced by organizational design.

      This type of strategy would easily prefer the likelihood as a balanced possession for knowledge conversion operations. But it is nothing but creates a strong bias against ‘socialization’ and ‘externalization.’

    • Business Type: IT Services ProviderMultiple organizations support full integration with foreign owners’ enterprise-level governance modification, project structure, and work culture. It involves various informal ways to lose people-interfaces, making the businesses make additional changes as the most significant organizational learning determent.The vital element of this working culture in knowledge management emphasizes a strong emphasis on the efficient support for the project’s sales, marketing, and delivery activities.
    • Business Type: Project Service for International Bank
      More attention is explicitly given to drive ownership and responsibility to serve different project areas having a review library to improve project management. It includes innovative professionalism programs that support a series of knowledge assets to handle several expertise tools and templates. 


      To create working in the virtual model, a deliberate strategy forms to deal with the working culture’s IT nature without any prior development efforts.

    • Business Type: Information Arm of Energy companyIt is the best example of a project-oriented concept that views knowledge management that spans boundaries like the learning, training, and human resources department.The primary perspective is to provide equal importance to the people, process, and technological advancement.

      To achieve such matters, networks and communities of practice play a vital role in potential knowledge providers to a great extent.It usually relates to multiple organizations’ learning processes to capture and share the repeat business life cycle’s day-to-day business. Thus, it becomes to fetch the correct behaviors and enhance the knowledge transfer process to gain customer relationships.Typically, people prefer to talk more rather than dealing with movement from externalizing learning to Nonaka Spiral that makes forward steps toward socialization mechanisms.

    • Business Type: Aerospace Company
      It eventually uses a Tier 2 supplier that deals with product development and performing accurate R & D. It follows a significant effort to make a project-oriented approach in the company and believes that the project’s management of knowledge enhances business effectiveness and thereby, gross profit margin. 


      It uses incentive systems to provide inspiring support solutions for learning activities and is led by the real weakness of the people who are learning daily.

    • Business Type: Government Department
      Such types of organizations are geographically decentralized. They possess a strong potential to handle multiple implementation issues. It is entirely dependent on knowledge among individuals that create explicit learning materials that the organization uses in-groups discussions numerous meetings, and appropriate tools to improve the conversations to a great extent.


Generally, knowledge is created through daily practice, participation, interaction, and education as there are different knowledge types that are shared and converted. The process of knowledge creation takes a period of time, as it involves several steps
Knowledge creation in research is nothing but a transfer combination or conversion of various types of knowledge as users practise, interact, and learn. It is a product of the shift between knowing and knowledge.
As we just checked what is knowledge creation and now it is about knowledge capture. Knowledge capture is a patent disclosure process that converts knowledge from tacit to explicit form and vice versa through sub-processes of externalization and internalization.
Within an organization, the knowledge creation process and distribution are critically impacted by organizational design. According to Ikujiro Nonaka, there are mainly four types of knowledge creation processes, including socialization, externalization, combination, and internalization.


In this blog post, we have gone through knowledge creation, from what is knowledge creation to the role of knowledge creation, and use of it in the IT industry. We have covered in-detailed information about this topic, giving examples of how it is useful for the organization or any company.

Not only this we have also answered some of the common queries that various organizations might have related to knowledge creation.

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