This chapter clarifies the relationship between information, knowledge, and competitiveness by introducing the model of the “knowledge ladder”. Based on the knowledge ladder, the terms, fields of action, and a maturity model of KM are explained. The reader will learn about the conversion of tacit and explicit knowledge according to the SECI-Model while a case study demonstrates the power of story-telling. The issue of structuring and valuing knowledge as part of intangible assets of an organisation is also addressed and a knowledge-based theory of the firm is introduced. The KM tool described at the end of the chapter is the “idea competition”.