Why is Knowledge Management (KM) important for Organizations?
In today’s digitally connected world, the demand for Knowledge Management as a service is growing.
Statistics estimate that poor-knowledge-sharing practices cost Fortune 500 companies $31.5billion annually. Knowledge Management remains an important parameter in the overall business strategy of a company to succeed in today’s competitive market landscape.
Importance of Knowledge Management (KM) in Organizational Success
1. Speed up the Access to Information
KM helps in easier information retrieval and reduced work duplication. It helps in building a robust central repository for information storage and retrieval.
2. Improve Decision-making Process
KM system improves the quality and speed of decision-making by accessing the organization’s important information when required. It facilitates knowledge sharing and work collaboration.
3. Promote Innovation and Information Sharing
KM enables an environment of collaboration and teamwork. It stimulates research, development, innovation and storing information more effectively.
4. Improve the Efficiency of Business Units
Using KM System, the organization performance and business productivity are enhanced. The social collaboration enables to work efficiently and boost overall work productivity.
5. Increase Customer Satisfaction
KM helps in enhancing the value added to the customers. KM helps to know the customer better as the CRM system retrieves information quickly. It allows the front-end representatives can address customer requirements more efficiently.
The Enterprise Social Networking is now integrated with Corporate Chat Software for the employees and teams to collaborate on projects efficiently. As the latest innovation, the chat conversions during various project implementations are archived and using AI technology is processed into informative insights.
For example, Comm100 is an AI-powered tool that captures customer feedback in real-time with AI-powered chat technology. It is aimed at enhancing customer experience and work productivity.
Knowledge Management is still in a very infant stage in many organizations in the UAE and globally, it has immense opportunities and assured business results if implemented and practiced well.
8 Steps in Implementing a robust Knowledge Management System
1. Goal Setting
The program objectives need to be defined before the KM implementation. Formulating both short-term and long term objectives helps in implementing the KM system effectively. Goal setting helps to progress in the right direction with the KM system implementation and gain the desired result.
2. Organizational Culture
KM fosters an open work culture and information sharing. The management must be involved and supportive of the concept of knowledge sharing and exchange of information. Hence, awareness training and changing organizational values are required for the successful implementation of KM System.
3. Process Overview
Providing an overview of the Knowledge Management process will help in streamlining the KM system performance. To get 100% benefit from the KM process, organizations must define the process steps clearly along with the execution timelines.
Knowledge Management process must include answers to how is knowledge identified, captured, categorized and disseminated. The KM System must facilitate organization best practices like formulation of knowledge management strategy, knowledge creation, identification, categorization, management, reporting, etc.
4. Prioritize Technology Needs
Knowledge Management system scope varies across the company based on various size, the complexity of the business, information requirements, teams, and projects handled.
A cost-benefit analysis must be conducted before implementing Knowledge Management to be sure of the expected results and feasibility.
5. Current State Assessment
Assessing the current business operations, level of IT support, employees, management culture, etc., is critical for the success of the KM system. The KM system must be implemented accordingly. The gaps between the current and desired business objectives are to be addressed by KM system implementation.
6. Implementation Roadmap
Having a detailed implementation roadmap is essential for the success of the KM program. From the current state analysis and goal setting, a clear direction and process flow of the KM system is obtained. Now it’s time to create an implementation roadmap.
It includes formulating a robust KM Strategy to meet the gaps and a detailed roadmap with the project milestones. It will help in implementing the right KM system and gain business benefits for the organization.
7. Implement the KM System
Once, you have determined the KM process, roadmaps, end goals, and desired outcomes, it is the final step of implementing the KM System in your organization.
Based on the determined business objectives, the KM system is implemented and the employees are provided with training to gain maximum benefits out of the KM system.
The key to the success of a KM system is the continuing usage of the system by the employees and the periodic measurement of the efficiency of the system.
8. Measure and Improve
Once the KM system is up and running, measure the effectiveness by comparing it with the expected results. It helps in determining the scope of improvement, shortfall, and action plan to enhance its performance to achieve the desired result.
The Knowledge Management system performance results are not instant; it would take time to get the expected results. As the system gets matured and the employee utilizes it to the maximum there will be a significant increase in employee productivity and overall business growth.
For any query on Knowledge Management Services, have a free chat with us right away!
Contact: Aurion Business Consultants