Knowledge management (KM) is the management of information within an organisation so that its intended users can effectively use it.
Knowledge management (KM) is an intentional and systematic strategy for building and sharing the knowledge base of an organisation. It is a field that encompasses both information technology and intellectual capital.
The core goal of knowledge management is to deliver the appropriate knowledge to the appropriate person at the appropriate time. This might not appear complicated on its own, but it implies a strong connection to corporate strategy, awareness of where and how it exists, processes that cross organisational departments, and assurance that efforts are approved and supported by organisational members.
It is possible for knowledge management to only concentrate on the development, storage, and refining of existing knowledge. The main goal of knowledge management is to produce value and to leverage, enhance, and hone the firm’s competencies and knowledge assets to accomplish organisational goals and targets. It is crucial to keep this in mind.
What is knowledge?
Knowledge is a complex and multi-dimensional construct, and KM solutions come in many flavours, ranging from collaborative tools to social software. But as it relates to business, people, and organisational processes. It is about sharing and organising business knowledge — that is, all the tacit knowledge about what you do and why you do it.
Knowledge includes storing, organising, and using information and implementing policies and procedures to support knowledge management. Knowledge can be considered a body of information that a company can use to improve its operations. Organisations must have a system to manage this information if they want to stay ahead of their competition.
How is knowledge created?
Knowledge management is creating, using, and sharing knowledge to improve organisational performance. It encompasses everything from creating a centralised depository for all know-how to developing effective communication and collaboration tools to ensure everyone in an organisation has access to the right information at the right time. Knowledge management is essential for organisations that want to keep up with changes in their industry and make informed decisions about where to allocate resources.
The benefits of knowledge management
Most people think knowledge management is about collecting and putting information into a library. While these are important knowledge management functions, information and intellectual property management are also key parts of a knowledge management system.
Organising and sharing knowledge allows you to take advantage of the latest advances in your profession or organisation. You can do what you do better because you have better information and knowledge about what you do. Knowledge is the basis for innovation. Innovations happen when organisations make mistakes. And learning is improved when people share their mistakes and successes to understand the problem better and come up with solutions.
An effective knowledge management system can provide several benefits for businesses, including:
Improved Training and Faster Skill Development
Organisations strengthen their learning cycles when they capture and share insights consistently. The Toyota Production System at Toyota operates through a system which requires employees to document their work-related knowledge at the end of each shift.
New employees learn procedures faster because they rely on updated process notes rather than outdated manuals. Research from industry training associations shows that structured knowledge practices can cut onboarding time by nearly 30%, which helps teams maintain consistent performance.
Research conducted by industry training associations shows that organized knowledge management systems reduce new employee training periods by about 30% which creates steady performance results for work teams.
Stronger Customer Service Through Shared Solutions
When support teams access reliable internal knowledge, customer issues get resolved more quickly. For example, Amazon maintains a vast internal wiki system which contains answers to common questions that customers frequently ask. Support agents refer to this database during their customer interactions which leads to shorter resolution times and better customer satisfaction results. Organizations that establish effective knowledge-sharing systems experience 35% faster problem resolution rates which demonstrates how information exchange leads to measurable performance improvements.
Better Innovation Through Access to Past Insights
Innovation deepens when employees build on previous experiments. The internal archives at Google engineers contain test results and failed prototypes and performance logs which they access for their work. When a team begins a new project, it examines this database to understand what worked earlier. The method helps to avoid duplicate errors while producing superior product results. It also invites an important question: how much creativity remains unused when valuable insights sit hidden in isolated folders?
Knowledge Continuity During Employee Transitions
Structured knowledge systems protect organisations when key individuals move on. The global knowledge base of Deloitte contains client information and project details as well as industry knowledge which the company maintains. The stored information becomes accessible to the following team member who uses it to maintain project continuity after a consultant departs. According to a PwC workforce study organizations that maintain strong knowledge continuity achieve a 25% reduction in transition delays which preserves client trust.
Competitive Advantage Through Global Collaboration
When companies distribute their knowledge between various departments and geographic locations they develop stronger proposals and superior products. IBM developed a worldwide knowledge system which linked its consultants to share their professional expertise with colleagues who worked in different parts of the globe. The partnership between these organizations produces precise valuable solutions which meet the demands of their customers. The company maintains its position as a top enterprise service provider because customers value its ability to deliver consistent worldwide expertise.
Conclusion
Knowledge management is the process of turning what people already know into information that can be used and of making it easier for people to learn and teach (knowledge creation and transfer). Knowledge management (or KM) is an increasingly accepted concept in various industries. Businesses that have seen the benefits of knowledge management know that there is a direct link between knowledge management and increased productivity, efficiency, and customer service. An effective knowledge management system can help organisations be more efficient overall. When all of an organization’s information is easily accessible and organised, it can run more smoothly. This can save the organisation time and money in the long run.
