In a world in which state-of-the-art technologies become obsolete in a matter of months and the most efficient systems may be easily used by competitors, there is just one area where a company can hope to establish and maintain a competitive edge: it is its people, who are the bearers of the intellectual capital. As a matter of fact the degree of any sector s competitive edge hangs on managements ability to manage company's intellectual capital, which in practice translates into an ability to manage people who are equipped with knowledge. The paper aims to show that management of knowledge will in the future play a crucial role in corporate activities, as it already does today, since knowledge is fast becoming a key resource in any company. The application of the latest methods, techniques and instruments to manage knowledge in a 21 century organization allows it to adapt to the fast changing environment and gain a competitive advantage. However, IT systems are merely a tool supporting knowledge. The key to efficiently and successfully managing knowledge lies not so much in corporate restructuring as in reprogramming the basic mental processes in executives and workers alike, which boils down to no less than a turnabout on corporate organizational structure.
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