The strategic value of knowledge management lies in its effective organization of the learning processes from data extraction to data utility. Actually, form extraction to utility, knowledge undergoes significant valuation based on the amount of thought process spent to create utility for the data. This means that knowledge management is not just harnessing intelligence and distributing it in the enterprise.
More so, knowledge management is the effective utilization of captured intelligence to strengthen the market position of enterprises. This means stronger customer loyalty, highly efficient customer services, high productivity, and increased dominance in their niche. These can be achieved because knowledge management increased the capabilities of companies to correctly define its business objectives, enhance its market insights, and create flexible business models.
The value of knowledge management is more pronounced in service oriented companies and information vendors. However, any company that wishes to benefit from increased intelligence can utilize the knowledge management systems. Specifically, effective KM implementations can impact on the way companies deal with concerns of their clients. The increased knowledge of personnel can enable them to respond fully to the demands of customers.
That is why the number one value result of KM is customer loyalty. So if loyalty has been clinched, the consumer base of companies will now have a basis for growth. This could result to increasing levels of corporate income which is a good indicator of growth. That is why it is very important to implement knowledge management not as a stop-gap measure but as strategic tool for enterprise operations.