Knowledge management is an important process and corporations can take advantage of to maximize their potential. Many organizations have a well of knowledge at their disposal, but they can't readily tap into it because it's not well managed and distributed. Insights become difficult to track or gain because trends from past employees, processes, and departments are not properly stored for future use.

Having the right management structure in place will ensure that knowledge becomes easily accessible throughout the organization.

This article discusses what knowledge management entails, the importance, benefits, and more.

What is Knowledge Management?

Knowledge management (KM) refers to the process of collecting, retaining, managing, and sharing knowledge and information within an organization. It typically involves a multidisciplinary approach to achieve company objectives by utilizing the available information within an organization.

More often than not, the knowledge and experience of employees (past and present) can help to tackle future projects. But when such information isn't kept and managed efficiently, the necessary insight will not be available to solve the problem at hand. Then, the organization will have to work on the solution from scratch instead of simply using a copy/paste approach. In short, KM can make an organization faster and more efficient in problem-solving and decision-making.

KM aims to make information and institutional knowledge readily available to staff or whoever needs it.

KM is broken down into three stages:

• Knowledge acquisition (or creation)
• Knowledge Storing
• Knowledge Sharing

By gathering and storing employees' knowledge, organizations retain what has made them successful in earlier times. In addition, sharing this information can help other staff boost performance, thereby improving the entire organization.

The importance of Knowledge Management

The importance of KM to organizations is that it makes them more efficient and aids decision-making.

Decision-making becomes faster since insights from past successes and staff knowledge are available.

Note that the use of KM is not exclusive to executives. Employees looking for information on how to execute a task will have access to the entire institutional knowledge. The result is that the overall expertise of every staff within the organization is at the disposal of each employee. The workforce becomes smarter.

In addition, innovation can grow within the organization since old practices can be identified and built upon.

In essence, KM is a way to share expertise within an organization.

Benefits of Knowledge Management

Some of the common benefits of KM include:

●      Sharing of expertise

●      Quicker problem solving

●      Quicker decision making

●      Reduced time to find information

●      Employee growth and development are fostered

●      The staff becomes more competent faster

●      Improved business processes

●      More innovation

●      Overall time savings

●      Overall organizational agility

Worthy of note is that how well the knowledge is managed plays a role in how much benefit is realized. Therefore, it becomes critical to design and implement an efficient infrastructure to make information readily accessible to every staff within the organization.

Thanks to cloud-based services, anyone can access information from their devices, right from their workstation, without moving an inch. You'd most likely need a managed IT services team to set up and maintain your network infrastructure, manage cloud configurations, and move data to the cloud. Managed service provider definition comprises many tech-related services, so you would have to make a clear agreement based on your unique needs.

Types of Organizational Knowledge

Three types of knowledge flow within an organization:

1.    Explicit knowledge

This is any information that can be easily put in systematic or mathematical form, written, taught, and shared. For example, how to set up billing/invoice, FAQs, instructions, etc. It's a formalized documentation of knowledge that can be used to make decisions, execute a job, or educate an audience.

2.    Implicit Knowledge

Implicit knowledge is gained by applying (or implying) explicit knowledge to a given situation. For instance, you can review FAQs and mathematical formulas to gain insight into the best approach to solve a new challenge. Other examples of implicit knowledge include an employee's ability to prioritize tasks and beat deadlines.

Most times, implicit knowledge has to do with the experience of implicit knowledge.

3.    Tacit Knowledge

Tacit knowledge is intangible and difficult to explain or codify -- it is experience built over time. It usually involves things that we can understand without being said. While tacit knowledge may be challenging to capture and implement, having appropriate structures in place can facilitate sharing experiences between old/retired staff and younger/newer ones.

The Bottom Line

Employees will retire, and some will move on to other ventures. It wouldn't be best to allow their experience and expertise to go out the door with them. With KM, you can share all relevant information organization-wide. So whether staff gets promoted, retired, or transferred, their knowledge can help new replacements easily fill those roles.

At the end of the day, your organization becomes smarter, agile, and more efficient.

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Over the years, businesses of all sizes realize the value of knowledge and information. Not surprisingly, a knowledge management system is a norm for large companies and small enterprises. A KMS is a tool that helps an organization capture, organize, and analyze pertinent information. It facilitates improved collaboration, better decision-making, and time management among employees. Moreover, it empowers the team to deliver a more efficient customer experience. Typically, a KMS includes company documents, product development data, product feature breakdowns, presentation decks, case studies, and best practices. Building it seems like a humongous task, but you can build it within a budget. Let us explain how.

Define the KMS goals

Implementing a knowledge management system gets easy if you identify your unique needs and goals in the first place. Customer-facing companies require it to help support teams to solve problems, up-sell products, and enhance customer experiences. Likewise, remote teams can leverage a KMS to enable efficient and user-friendly workflows. Your employees feel empowered with information, making them better and more productive in their roles.

Choose an apt knowledge management platform

Choosing the relevant knowledge management platform is another critical factor when it comes to implementing a KMS on a budget. Evaluate the user base and pick a platform they can use comfortably. After all, the last thing you want to do is spend a fortune to train employees for accessing information from the system. Providing them with a platform with intuitive features for search, editing, and content creation helps with easy buy-in and long-term savings.

Outsource development

Outsourcing development services to create and implement your knowledge management system is the best way to stick to your budget. You can check reputed Staff Augmentation Companies with relevant expertise and experience to hire resources for the project. The model is far cheaper than onboarding an in-house team, as you may not even require them after the deployment stage. You need not retain outsourced employees for the long run but can bring them back for upgrades or maintenance in the system.

Facilitate integration

Ease of integration is another factor that makes a KMS budget-friendly. You will not want a system that requires a change in the other elements of your business ecosystem. Look for one that can capture knowledge and expertise and create a robust repository for future use. Additionally, it should integrate seamlessly with the tools and apps your teams already use. Seamless integration ensures productivity and quality outcomes without spending a fortune.

Continue to improve and update

Continuous improvement makes your KMS relevant and valuable, so do not take a set-and-forget approach after it is up and running. Your needs evolve down the line as your processes change, product lines grow, teams add up in size, and economic and other external factors alter. The information increases, and you need a bigger and better KMS to handle and manage it. Stay regular with updates in the system to ensure relevance and value.

A KMS is the most valuable investment for a business as it empowers your team, so you should not skimp on it. But you can actually spend less to get more out of the system with these simple measures.

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People say that knowledge is power, but that adage is far more than an easy axiom. It’s also a bedrock truth. Perhaps no one knows that better than business leaders and decision-makers, those who deal every day with the management of knowledge.

The simple reality is that knowledge is the grist that keeps the wheels of your business turning. Lack of knowledge can lead to devastating errors, misjudgments, and mismanagement. Conversely, the theft of sensitive information can destroy your company’s reputation and threaten its very survival.

What this means, ultimately, is that knowledge management is about far more than developing sound operating practices, promoting efficiency and productivity, or galvanizing growth and profitability. Rather, the effective control of information is also an aspect of risk reduction. Indeed, risk mitigation may well be the most important, if frequently overlooked, attribute of knowledge management.

Connecting Knowledge Management and Risk Mitigation

Ours truly is the age of information. The success of any modern enterprise, regardless of the industry, directly and inextricably links to the production and flow of knowledge. Thus, the principal form of currency in modern business isn’t money — it’s information.

Just as you would safeguard your financial assets as a function of your risk management processes, so too must you safeguard the creation and circulation of knowledge within your organization if you intend to effectively mitigate the risks to which your organization is exposed.

The Rise of 5G, the IoT, and Smart Tech

Now more than ever, much of the work people do is performed remotely, via smartphones, tablets, and other connected devices linked to the Internet of Things (IoT). These technologies give workers unprecedented power to create, access, and disseminate knowledge whenever they need it and wherever they may be.

This on-demand access to information not only helps to support efficient workflow, but it reduces the risk of work stoppages, delays, or operational errors. For example, IoT devices can be used by farmers to monitor growing conditions in real-time, shippers to track shipments worldwide, and warehouse and inventory managers to continuously assess and regulate product and supply stocks, transport, and storage. Ultimately, this reduces operational risks relating to common threats such as lower-than-expected crop yields, shipment delays, and inventory mismanagement.

Best of all, the extraordinary speed of information flow promises only to increase as technology advances and the 5G network expands worldwide. Indeed, the proliferation of 5G is expected to bridge the digital divide, connecting once inaccessible spaces to the world wide web while offering unprecedented speed and security.

This means that not only will knowledge flow faster, more freely, and more securely around the world, but also that business leaders worldwide will have more power than ever before to reduce their strategic, financial, regulatory, and operational risks. And such risk avoidance not only benefits the organization, but also employees, consumers, and local, national, and global economies in general.

Curtailing Information Flow

As critical as the dissemination of knowledge may be to productivity, efficiency, and strategy, there are, of course, a myriad of reasons why information access is a threat. Some data simply are not appropriate for public consumption, and the failure to protect such sensitive information can have profound consequences for your company.

Healthcare organizations that fail to secure patients’ medical information, for instance, may face costly lawsuits and severe damage to their reputation. Under extreme conditions, they may even be subject to compulsory shutdown by regulators.

For this reason, it is imperative that business leaders prioritize not only the production of knowledge but also the protection of it. Unfortunately, this is not always an easy proposition. For example, you likely already have a clear and rigorous policy for shredding documents containing sensitive information, such as financial or medical records.

However, information leaks can come from even the most seemingly innocuous sources. For instance, bad actors may be able to use something as simple as a birthday card to begin gathering the personally identifiable information (names, birth dates, relatives’ names, etc.) they need to hack company accounts.

This is why, when it comes to knowledge management, it’s probably not possible to be too proactive. In other words, sweat the small stuff. Install virtual private networks (VPN), firewalls, and other advanced security technologies and ensure they’re always updated. Engage in rigorous and ongoing information security training for all employees and partners and provide timely security alerts. Institute policies for destroying all potentially harmful information, no matter how seemingly innocuous.

This should also include, for example, securing all devices potentially containing work product, and ensuring that devices no longer in use are destroyed rather than simply wiped or scrubbed. Even common office equipment such as printers and scanners can retain sensitive information and, thus, should also be professionally destroyed.

The Takeaway

Knowledge management is about far more than using information to optimize operations and drive profitability. Knowledge management is also likely your best weapon against risk. With the appropriate technology, sound information production and dissemination practices, and rigorous data security, you can safeguard your company against the myriad risks that threaten it.

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Are we continuing to build for the future without really looking back?

Today a large number of product companies focus on ensuring their products are revolutionary and are game-changers - something that the larger universe desires. For these product companies there are a large number of investors who are backing their idea and pending financial viability there is a good consensus that the market would respond. However, how desirable is the product - that's the big question.

If you look at the above, there are three important criteria for every solution at the heart of innovation. Reference from The Sweet Spot for Innovation | Medium.

• A desirable solution, one that your customer really needs
• A feasible solution, building on the strengths of your current operational capabilities
• A viable (profitable solution), with a sustainable business model.

If we relate KM as a product to the above and run a survey, then most of our user's would call out 'desirability' as critical. So, is the COO of every company trying to mimic its competition and build advanced KM products aligned to this, is the larger question. The answer is most leaders do what is important for the business and hence are designing their KM products with a balance of the organizations' core operational strength, its mix of existing people, processes, and technology.

Further, as the organization grows, so does its nature of business change, and so do our practices & processes evolve to ensure we are contributing to community and society. Does KM remain the same, or does it evolve?  That might be something interesting to think about.

If you are looking at the below graphic, you could do some sense-making with the above design thinking, product-based mindset. Then we need to develop a model that imbibes 80% of our existing operational construct of the org + 20% builds new capabilities for the future.

Below is a simplistic technique where one can combine the existing people practices, current processes, and build for the future.

Automate where behaviours are known, not just repeatable practices & processes

1. Make downloaded material interlinked with the KM system so it expires every X week and the user must download again
2. Give insights to the user on areas where they utilized KM systems
3. Make KM the 1st entry point in the day

Backup in-line with the defined km policy

1. A KM audit to be done and in-line with KM policy and content for archival defined
2. Past project artifacts are archived before a resource is tagged to a new project  

Combine KM practices with existing people practices & org-wide processes

1. Make KM a mandatory section in leadership reviews so its habitual to the leaders
2. Managers get variable pay salary only for completing all pending reviews on KM portal

Divide how KM is accessible and introduce right steps for governance

1. Make all organizational announcements mandatory accessible through the KM portal
2. On entry user's provide justification and on exit must rate downloaded information 

Eliminate old practices and introduce new ways of thinking

1. Make all artifacts viewable only if linked to active users for managing content quality
2. Conduct certificates for exit employs to be granted against declared artifact checklist  

In-Summary

The ABCDE technique will ensure we can link the below five success factors and ensure KM as a Product is well acknowledged as below.

1. Exist in the “Natural Flow” of our Processes (Automate)
2. Increase Discovery to Real-time Information (Backup)
3. Improve Cross-Functional Decision-Making (Combine)
4. Enhance Enterprise Collaboration (Divide)
5. Show Value Through KM measures linked to key business objectives (Eliminate)

Knowledge Management: Key Questions and Answers

Do you understand the difference between information and knowledge? In a business context, information gathering happens at all levels of an organization. It can include everything from customer interactions to internal company meetings. On the other hand, knowledge is what every member of an organization understands and uses in their everyday activities. 75% of companies realize that knowledge management is crucial for their success. Let's look at knowledge management and its benefits to your workplace. 

What is Knowledge Management? 

So, what is knowledge management? IBM defines knowledge management as a way to identify, organize, store and share information. A knowledge management system is a platform that gathers business information to help streamline operations such as:

- Recruitment
- Training, and
- Communication

Additionally, knowledge management can foster better:

- Transparency
- Accountability, and
- Collaboration

Each of which helps improve employee satisfaction and retention.   

What are the Goals of Knowledge Management? 

Knowledge management serves several key goals in an enterprise. The goals of a knowledge management system are to: 

• Keep knowledge in an easily-accessible form
• Share knowledge with the right people at the right time
• Break down information silos 
• Maintain knowledge if valuable employees leave the company
• Create a culture of continuous learning 

What are the Benefits of Knowledge Management? 

The main benefit of knowledge management is efficient business operations. A knowledge management system makes a business more agile because it: 

• Improves the quality of business data
• Boosts collaboration within your team
• Identifies skill and competency gaps for training opportunities
• Enables faster decision-making at all levels 
• Increases data security for intellectual property 
• Creates standardized business processes 

What are the Challenges of Knowledge Management? 

Like every business process, knowledge management can present challenges to an organization. Here are four of the top challenges organizations face when it comes to knowledge management:

• Some employees may hoard their knowledge to maintain their positions in the company
• Knowledge sharing is not a priority for employees because of their existing workloads
• Knowledge management systems need proper configuration with the right permissions. The aim is to protect sensitive business information
• A knowledge management framework takes more time and human resources to update and maintain

What are the Types of Knowledge in an Organization? 

Three main types of organizational knowledge drive your knowledge management process: 

1. Explicit knowledge

Documented information like policies, product specifications, service functionality, and other business-generated content.

2. Implicit or embedded knowledge

Information about business processes such as:
- Recruitment or merit systems
- Routines
- Manuals, and 
- Organizational culture

3. Tacit knowledge

This is practical know-how about business operations gained through experience. This includes subject matter expertise held by certain employees.

Practically speaking, these types of knowledge come from: 

• Organizational documents like reports, business records, and market research 
• Structural information such as:
  • Company hierarchy charts
  • Handbooks
  • Presentation formats workflows
  • Best practices, and 
  • Business strategies
• Group data like mentorship programs, project teams, and training groups
• Individual knowledge like customer inquiries, notebooks, or even a team member’s memory

Knowledge Management Use Cases

A knowledge management framework finds value in the following business processes: 

Onboarding

New team members can quickly search and find what they need on a centralized knowledge management system. This significantly reduces training time and increases competence levels. 

Customer support

Customer service teams can find quick references and answers for inquiries. 

Internal communications

Teams can seek out knowledge directly from the system and save emails and chats for priority queries. 

Inventory updates

All departments get notified of product changes like prices, upgrades, or shortages. 

What is the Knowledge Management Process? 

To manage knowledge in your organization, first you must understand how knowledge arises in business and how to make it work for you. 

The ideal knowledge management process has six steps: 

1. Knowledge discovery

Figure out your organization's implicit, explicit and tacit sources of knowledge.  

2. Knowledge auditing

Check that all your information is relevant, up-to-date, and error-free. 

3. Knowledge structuring

Organize your information into a searchable, accessible knowledge management database. 

4. Knowledge sharing

Grant your team secure access to your knowledge management system. Encourage them to contribute and share their knowledge on the platform and create an incentive program to promote the sharing process. 

5. Knowledge application

Reward team members who use the knowledge to improve their performance. 

6. Knowledge creation

Keep gathering and updating your knowledge management system according to the outlined steps. 

What are Knowledge Management Tools? 

Anything that captures business information and generates insights is a knowledge management tool. That qualifies your basic spreadsheets as one. However, knowledge management tools can be highly specialized to match your industry. The most common tools include: 

• Content management systems (CMS) for online publishing
• Intranets for sharing business information securely within an organization 
• Data warehouses that use machine learning and artificial intelligence (AI) to aggregate and analyze data
• Feedback databases for project management communications 
• Document management systems for hosting all digital business documents 

Conclusion 

Your knowledge management process depends on your company's size and structure. Smaller companies can build a goldmine of business data and scale up over time. Larger companies can put in place a system for digital transformation and business forecasting. Implement a knowledge management strategy to improve your business outcomes today!

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