Knowledge management (KM) is an integral part of any organization to achieve strategic objectives. It is a branch of management that aims to improve business performance by enhancing an organization’s capacity to learn from problems, develop new processes and at the same time, provide solutions as well. Effective use of an organization’s knowledge resources creates a more competitive advantage and drives lot of benefits that include one or more of the following:
(a) Promotes innovation acquired through the free flowing of ideas. (b) Improves customer service as it streamlines response time. (c) Enhances employee retention rates by giving more value to people resources. (d) Increases revenue by seeing to it that products and services get to the market as quick as possible. (e) Streamlines business operations, and at the same time, reduces production costs as brought about by the elimination of unnecessary or redundant processes.
Behind these great advantages of KM are challenges that should be taken into consideration to ensure continual business growth and development. Some of these include the following:
(a) It is clearly emphasized that employee knowledge is valued and rewarded in a KM environment. But then again, it would take some time before a culture of dependability that fosters information sharing is established. Making a plan to address this situation is indeed very critical. (b) KM is a constantly evolving business practice and therefore, there is a need to keep on updating, amending and deleting the contents of a KM program regularly.
With an excellent KM program in place, absolutely nothing could go wrong. Taking a more creative approach on understanding KM processes can definitely yield favorable results on any practically any business function.