Some of the tangible benefits of knowledge management are directly related to their bottom line savings. In today’s information-driven economy, companies continuously tap most of the opportunities and ultimately derive most value from intellectual rather than physical assets. According to many experts, to get the most value from a company’s intellectual assets, knowledge must be shared and served as the foundation for collaboration. Consequently, an effective KM program should help a company leverage the assets and provide the following benefits:
- Fostering innovation by encouraging free flow of ideas
- Improving customer service by streamlining response time
- Boosting revenues by getting products and services to market faster
- Enhancing employee retention rates by recognizing the value of employees’ knowledge and rewarding them for it.
- Streamlining operations and reducing costs by eliminating redundant or unnecessary processes.
- A creative approach to KM can result in improved efficiency, higher productivity and increased revenues in practically any business function.
Knowledge Management’s (KM) role is to connect knowledge owners with knowledge seekers. The knowledge of one is transferred to the mind of the other, so that a new decision can be made or situation can be handled. KM provides a means to capture and store passing knowledge and broker it to the appropriate individuals.