Why knowledge management is important in an organization

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If you think you'd be a good fit, please click the button below to learn more and apply! What are the types of knowledge? Many factors affect how knowledge is used, including: where organizations are in their life cycle type of business core competencies leadership, culture infrastructure marketplace competition Effective knowledge management initiatives are designed to take critical tacit knowledge that is unseen and known by only one or a few individuals and turn it into explicit knowledge to be transferred to many.

Why is knowledge management important to your company? A successful knowledge management program should be based on the following: People - They are crucial in steering the organization to provide guidance with their knowledge. Here are a few more areas of your organization you can improve. By taking care of knowledge management, you create a centralized location for information, which remains available and continuously updated as employees come and go. Thus you eliminate an information gap your employees may not be able to bridge alone and you get covered against the loss of information.

When you prioritize knowledge management, this significantly increases the chances of achieving successful innovations. An integral part of knowledge management that fosters innovation is getting knowledge from external sources — the market, competitors, the industry leaders.

Employees at your organization might be very job-specific or wear many hats. In either case, a knowledge management system and the process will help your employees — and the company overall — get better transparency on what knowledge is available and reach better team productivity. Well-organized knowledge management will also contribute to staying aligned on company values, outcome-based expectations, and collaboration tactics.

Learn more about smartPeople with our free datasheet. Explicit knowledge within an organization is easy for employees to access and co-workers to exchange. Explicit knowledge can range from company handbooks, to sales scripts to how-to videos on a Learning Management Platform. Accumulating, storing and effectively sharing knowledge allows you to create a culture that can significantly improve efficiency and employee happiness. But ineffective knowledge management impacts the financial front and employee satisfaction levels.

This failure to document and store knowledge results in wasted time, recreated solutions, lost productivity, repeated mistakes and the same questions answered repeatedly. In comparison, however, effective knowledge management has quantifiable benefits. These are just a small snapshot of the benefits. According to a Gallup study, effective knowledge management boosts employee happiness and output. Plus, this wider spread of knowledge means more effective decision making from the top to the bottom of the organization.

There needs to be a knowledge management process in place that's followed organization-wide to unlock these and other benefits. Intelligent knowledge management platforms can provide access to the most powerful resource on earth, human intelligence. Implementing an intelligence platform is vital to gaining an edge on your competition, improving productivity and making your teams happier. Reduced risk of losing data and information that can easily be digitally misplaced or deleted.

This also decreases the amount of time spent rewriting reports or reevaluating data. Over the years, we carried out a series of projects for clients that required the availability of prior information. Because of the difficulty of obtaining this information, we noticed that most companies have a common problem: the decentralization of knowledge generated within the company.

We then built a solution factory that allows you to explore the actual value of digital tools. The service covers migration to the cloud, process automation, and integrated knowledge control to guarantee:. We also created a simple step-by-step guide that you can use to start implementing Knowledge Management in your company today! Some organizations include intellectual capital on their balance sheets, while others are leveraging the asset to generate new revenue forms, reduce costs, and innovate.

Knowledge is one of the key components embraced by ERP software implementations. Categories: Process Consulting. Topics in this article:. Stay current. Get our newsletter. Process Consulting.