There are several benefits of knowledge management (KM) if it is pursued and maintained effectively. Overall, it can help an organization to make the optimum use of its gathered knowledge. Specific benefits of knowledge management include reduction of wasted resources, greater customer satisfaction, better ability to compete in the marketplace, and increased effectiveness in planning for the future. How exactly KM can affect a particular organization depends upon whether there is a general focus or if the effort is centered on specific areas such as ecology, technology, or organizational design.
One of the primary benefits of knowledge management is better utilization of all of the resources in an organization. This can include everything from the knowledge employees possess to reports on sales, marketing, and customer satisfaction. By maintaining and using this information effectively, past experience and current personnel qualifications can be used in the most efficient manner to elevate and advance the organization.
The ability to solve problems by learning from past mistakes is one of the other strong benefits of knowledge management. By carefully tracking successes and failures, an organization can create an effective list of best practices. This can help an organization in every area, from customer satisfaction to improved productivity.
Another solid benefit of knowledge management is that it provides materials for training personnel. Both new and current employees can benefit from the accumulated knowledge of an organization. They can also develop an understanding of the organization as a whole and learn more about its inner functions and how it interacts with the outside world. This includes learning from mistakes and building on past success.
With a centralized database such as can be compiled with KM, it is also possible to create better consistency across an organization. It is a resource that can help employees on every level to align themselves with the core values of the organization and best practices for the future. Strong knowledge management can improve communication within and among departments and help to unify all employees.
Another benefit of knowledge management is that it can help managers and executives to direct work to the proper resources in the organization. With detailed information about employee capabilities and records of what efforts have and have not worked, it can be possible to find the best way to save time and resources. This knowledge can also help an organization to avoid hiring or maintaining too many personnel for its needs.