Reasons Why Knowledge Management is Necessary

Knowledge is power and being able to use that power for the good of an organization its a chance no company should lose.

In this short article we try to explain why good knowledge management can be a game changer for any company, and why it is a must to have a knowledge management tool to let your team be better, sell more and have better customer service and satisfaction.

So… let’s go!

1- Fast access to information and knowledge

In his famous quote, Lew Platt, former CEO of Hewlett-Packard, once said: “If HP knew what HP knows, we would be three times more productive.
In other words, knowledge management makes it easier to find the information or the people who hold the information you need. It increases efficiency and productivity and allows you to work better, reducing the tendency to “reinvent the wheel.”

 

2- Much easier decision-making processes

Teams can improve the quality and speed of decision-making by accessing the knowledge of the entire organization when they need it. When making decisions, knowledge management sharing tools facilitate the access to opinions and experiences of different people, which may contribute additional perspectives to the choices made.

 

3- Break data silos and facilitate innovation.

Enable and encourage the sharing of ideas, collaboration and access to the latest information contained in different data sources. Data silos make employee’s lifes a nightmare since they spend too much time looking for the information they need.
Knowledge management enables individuals to stimulate innovation and the cultural changes needed to evolve the organization and meet changing business needs.

 

4- Improve the efficiency of an organization’s operating units and business processes

With faster access to information and resources across the organization, knowledge workers can act quickly. A study conducted by McKinsey & Co, wherein more than 4,200 executives were interviewed worldwide, showed that the use of social collaboration technologies has improved business processes and the organization’s performance in general.

5 -Increase customer satisfaction

The sharing of knowledge and cross-collaboration help to increase the value offered to customers. The organization is able to give faster answers or shorten the time it takes to improve a product or service.
According to a study by Gartner (Knowledge Management Will Transform CRM Customer Service), improving access to contextual knowledge by an employee or a client reduces the time that a provider requires to give an answer by 20-80 percent, increasing customer satisfaction. Also, an organization can reduce the cost of customer support by 25 percent or more, when using appropriate knowledge management software.

Scroll to top
Get the guide "5 ways guide to overcome information chaos at work"

"Average knowledge worker must process, consciously or subconsciously, the equivalent of 174 newspapers of information every day"

Sheena Iyengara,
professor at Columbia Business School