How Can Your Business Benefit From Knowledge Management?

Knowledge management has been an established discipline of study since the early ‘90s. Since that time, it has gone in and out of fashion, but now it is back, and with a vengeance. The amount of information in the world is growing exponentially, and to survive companies need to have a secure handhold on the information that is most relevant to them and be able to apply that information to their daily activities.

Here are five business problems that a knowledge management strategy can help solve.

Too much information

Solving this problem is the overarching function of knowledge management—there is simply too much information out there for any one person, or one business, to absorb. According to Google CEO Eric Schmidt, we now create as much information in two days as we did from the beginning of civilization until 2003, and the pace is increasing. Although businesses certainly don’t need all of this knowledge, the amount of data generated on a daily basis through customer service calls, social media outlets, and other activities is still immense. Knowledgebase management is an effort to collect, store, share, and use information to advance an organization’s collective knowledge in service of the company’s goals.

Falling behind the learning curve

In the past, knowledge was much more static—you could learn something once and have that learning carry through your entire career. This is no longer true. With the rate at which information and technology currently changing, lifelong learning is becoming a trend not only for people, but for businesses as well. Having a knowledge management strategy, in which employees are encouraged to contribute, seek, and share their knowledge on a regular basis, helps create learning organizations where learning is a routine and expected part of the job.

Poor decision-making

Making poor decisions is costly for businesses. One of the top reasons leaders make bad business decisions is that they rely too much on past experiences that are no longer relevant. Effective knowledge management systems allow leaders to assess current data and understand the present situation, as well as run predictive analytics, so they can make better decisions about the future.

Lost revenues

You might not know it, but not having a knowledge management strategy is costing your company money. In 2004, a study by International Data Corp. found that “failing to share knowledge” is costing Fortune 500 companies alone at least $31.5 billion every year.

Lack of innovation

These days, the mantra of the business world is “Innovate or perish.” But meaningful innovation comes only from collaboration and sharing across an organization. Companies that keep their knowledge siloed within departments, or in the hands of an elite few, give up on the substantial benefits they could realize from fostering an environment of communication and collaboration.

In a knowledge economy, knowledge management is no longer a choice—it is imperative for businesses that want to both survive and thrive in decades to come.

Explore your options today to see what a well-designed knowledge management strategy can do for your organization.