Although UK companies realise the benefits of knowledge management they are failing on implementation says Cranfield School of Management in a new report.

Cranfield's survey found that while 80% of companies recognise the importance of using corporate data, it is on the boardroom agenda at only half. Just over a quarter of those surveyed had adopted company-wide knowledge management strategies.

The work was sponsored by Microsoft whose knowledge management manager, David Bridger, said: "The government has been talking about knowledge and skills and creativity as being very critical to the long term success of the British economy. The growth of the Internet is driving globalisation and increasing exposure to companies all over the world. If UK businesses are not using knowledge management effectively we will be hampered in our success as an economy."

Cranfield identified the financial sector as performing well whilst the public sector trailed. The report concludes that organisations which concentrated on customer care as opposed to cutting costs, produced better commercial results.

Richard Byatt