7 benefits of knowledge management in companies

Knowledge management in companies is based on the concept that knowledge is present in the minds of employees.

These, organized into groups, teams and departments, generate even more knowledge, in the form of processes, management models, methodologies and projects.

However, in order to take advantage of all the benefits of knowledge management in companies, it’s necessary to assume that this knowledge is not an exclusivity of each employee or team that developed it, but a company equity that must be shared.

As a result of this collaboration and exchange of knowledge, all employees will be able to enjoy the knowledge present in the organization as a whole, generating much more efficiency and productivity.

The management of knowledge in companies is nothing more than the promotion of mechanisms for the dissemination and exchange of knowledge in organizations.

Check out this informative infographic:

benefits of knowledge managementSource: Aurum

See more: Knowledge management tools in companies, which ones should you use?

Objectives, tools and benefits of knowledge management in companies 

Before we analyze the benefits of knowledge management in companies, it’s necessary to define some important concepts.

The difference between information and knowledge

Information is a message that will help others or the group reach a goal. In the definition given by Peter Drucker, information is interpreted data, endowed with relevance and purpose

Knowledge derives from information, and because it’s difficult to explain it in words, it should, when possible, formally structure it in manuals, schematics, tables and other forms.

In addition, it evolves, in the same way as the people who own it, as it interacts with the environment and other people, who can complement that knowledge.

Knowledge is further divided into 2 types:

  • Tacit knowledge: the personal knowledge of each individual, linked to their experience. This type of knowledge is the most important, although less objective and difficult to articulate in words in a formal way, because it involves intangible elements such as values, beliefs, emotions and intuitions. It manifests itself through effective action.
  • Explicit knowledge: this is formalized in documents, phrases, rules and other codes, so that it can be easily transmitted, including through courses and training.

Objectives of knowledge management in companies

For all its value to the organization, it’s very important that you can use this intangible asset in the best way to achieve the following objectives:

  • Organizational Memory Management: the necessary conditions to identify all the knowledge the company has accumulated and where it stores it.
  • Company organizes data logically so that it can transform it into useful information to use for knowledge development.
  • Make information flow properly and be accessible to all, with the help of technology, allowing your business to find results.
  • Promote the generation of new knowledge from the dissemination of this information, which leads to the achievement of competitive advantages.
  • Increase organizational competitiveness by using this knowledge in a strategic way that unfolds in tactical objectives and operational actions.

Also see: Where to get support and who to use for digital transformation

Tools for knowledge management

But how do you achieve these important goals? Ideally, your organization should use the following techniques:

Competency management

One of the foundations of the new strategic HR model, competency management consists of deeply analyzing the organization’s objectives to clearly define what its knowledge, skills and attitudes are. In other words, what competencies the company employees need to possess or develop to achieve those goals.

Organizational learning

This is a process of encouraging collective learning, which provides an environment that stimulates innovation and, consequently, risk. Where the organization doesn’t perceive errors as failures, but as part of a process of continuous improvement in search of new knowledge.

Corporate education

A more formal process that includes courses, training, workshops, incentives to take courses outside the company and even the creation of a corporate university.

Information management

Supported by technology, it seeks to systematize and organize company information for it to flow to those who need it. This will facilitate more agile and assertive decision making.

Competitive intelligence

In this case, an organization must constantly monitor the market to find out if it’s lagging in terms of knowledge, especially at a strategic level. This facilitates the discovery of opportunities and anticipates risks.

Benefits of knowledge management in companies

After all we’ve said about it, it should be much easier to understand the benefits of knowledge management in companies:

  • More effective strategic management thanks to the knowledge of the best strategies, techniques, practices and solutions.
  • Increase efficiency and productivity, with more collaboration and use of the most appropriate processes.
  • Increased teamwork, innovation and the search for creative solutions.
  • Decrease in the learning gap and the increasing accumulation of knowledge in a systematic way.
  • Accelerating the productivity curve of new employees through assertive training and access to the data, information and knowledge they need.
  • Process standardization and more agile access to information, leading to smarter decision making.

Also see: People, processes and technology in knowledge management

How does your company share and store information about your business processes?

With HEFLO, intuitive and cloud-based BPM software, along with modeling and automating your processes, you can store them in a repository and share them remotely with all your employees.

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