Another aspect of the management-organization pillar is the
management of the value chain, which is a critical enabler for knowledge
management. The concept of value chain arises from the fact that organizations do
not exist in isolation. They form links joined together in value chains. In these value
chains every organization has customers while at the same time being a customer
of other organizations. Every organization has to manage the organizational
knowledge relating to its customers and suppliers. Such knowledge is generally
referred to as customer knowledge, which must be generated, organized, shared
and applied – in other words, managed. The main enabling practice with regard
to this type of knowledge is customer relationship management. Effective
management requires that a rich relationship with customers should be firmly
established. In terms of the knowledge management process, this means making
sure that the preferences of customers and the feedback that they provide are
known to all the relevant persons within the organization.