It is difficult to develop knowledge based network, as such networks are based on the data, information and the processed data that is available pertaining to any company. The systems are very complex as they have to take into consideration and account the experience based knowledge of the workers as well. Basically then include the data and the information per employee ion the organization, which is easy to codify into databases and stored electronically. However it is not possible to accurate or precisely code experienced based logic.
Therefore the tacit knowledge also has to be taken into account for the development of the knowledge management systems. Aside from this the knowledge management systems have to be able to store large amounts of information which can easily be accessed through a common portal and can be secured form third parties as well. Moreover these systems have to take provide daily learning and uploading capabilities as well as a communication service like messaging or emailing amongst the users. All these functionalities and characteristics of the system make it a difficult complex system to develop which is expensive investment for the company.