Higher education institutions are in the knowledge business, since they are involved in knowledge creation and dissemination and learning. Examines the applicability of the concepts of knowledge management to higher education institutions in the United Kingdom. Identifies a number of existing facilities, systems or projects which contribute to knowledge management in higher education, such as libraries, and electronic collections of learning materials, networks for e‐mail communication, and management information systems which provide data on the student profile. Then considers the challenges associated with the creation of a knowledge environment in higher education, and explores the opportunities offered by viewing knowledge as an asset. Concludes by noting that although knowledge based organizations might seem to have the most to gain through knowledge management, effective knowledge management may require significant change in culture and values, organizational structures and reward systems. The management of the relationship between knowledge and power is crucial.
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