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Why Knowledge Management Is Important

        posted by , March 22, 2013

Never miss a good chance to profit from knowledge.

In a knowledge driven economy it only makes sense to manage knowledge.

Knowledge management isn't a passing management fad. It's a fundamental business practice that only grows in importance as knowledge becomes critical to competitive advantage in every industry.

There are seven reasons knowledge management is important.

1. Transform Data Into Knowledge

Data isn't knowledge — not even close.

Many organizations are flooded with data that they know has value. However, it's a challenge to realize that value.

The knowledge management process identifies, assesses and continually improves information. Information is communicated and socialized to identify actionable knowledge and insights.

2. Prevent Knowledge Loss

Many organizations are run by the knowledge in people's heads. When people leave, critical knowledge investments go with them.

Too often organizations fail to capture the knowledge generated by programs, projects, processes and conversations.

Knowledge management continually surveys the organization for knowledge retention opportunities. This ensures that critical knowledge is identified, captured and used.

3. Prevent Duplicate Effort

It's amazing how often projects and initiatives create duplicated knowledge within an organization.

Knowledge management improves access to knowledge so that the same document isn't produced multiple times.

4. Communicate & Socialize Your Knowledge

Knowledge is useless sitting on a shelf.

Knowledge management facilitates communication and socialization of knowledge. This helps to ensure that knowledge is used.

5. Continually Improve Knowledge

Knowledge has to be improved, challenged, and increased constantly, or it vanishes.

~ Peter Drucker
Knowledge doesn't age like a fine wine. When it's hidden in a cool, dark place it quickly loses value.

Knowledge management ensures that knowledge is continually improved. For example,
communication and socialization processes are used to grow and improve knowledge.

6. Measure Knowledge

Firms carefully measure and monitor their capital investments. However, some firms fail to track knowledge investments.

Knowledge management enables measurement of knowledge assets.

7. Knowledge Runs Your Business

Knowledge is used in strategy, decision making, research and development, communications and business processes.

Knowledge is key to new product development. Knowledge is often a product itself (or a component of a product). Knowledge also supports business metrics, reporting, audits and compliance activities.

In short, everything your business does is supported by knowledge management.

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