Why is knowledge management important?

Knowledge management

The knowledge management (KM) category represents solutions that streamline the process of capturing, distributing, and effectively using knowledge. When an organization is able to easily access, share, and update business knowledge, it can become more productive and cost-efficient. The ability to access the right knowledge at the right time, via a robust knowledge management system, informs accurate decision-making and stimulates collaboration and innovation.

A McKinsey Global institute reports indicates that a robust knowledge management system can reduce information search time by as much as 35 percent and raise organization-wide productivity by 20 to 25 percent. Findings culled from the International Data Corp also corroborates the value of a knowledge management system.

As your enterprise grows, so too will the need to access a reliable knowledge database in order to effectively run your business, serve your clients, and increase revenue. Without a knowledge management system in place, your employees will be forced to learn and relearn processes and information. That’s an inefficient and costly practice. Plus, you may also run the risk of losing those processes or information if a knowledge leader or legacy employee leaves your company.