Businesses have a huge amount of unstructured information that could potentially limit the profitability of this information. A knowledge management system, or KMS, is a way for businesses to structure their data and make use of its resources and information in full. Below are a few reasons why a knowledge management system is important for any business.
A business generates an ever-increasing amount of information from various online channels such as social media, emails, online conversations and more. Knowledge management systems enable businesses to categorize this data based on content and customized criteria, and make it usable. The first step is to categorize the data so that it can be easily found and retrieved. Then comes the classification of documents, which involves organizing information according to their content. Instead of collecting data but having nowhere to put it or not being sure of what to do with it, a knowledge management system enables businesses to make something of the data and create knowledge from it.
As methods and resources available continue to evolve and expand, the need to move from a data lake to an organized database is more recognized. With data categorization and organization, knowledge is easier to produce and extract. This means that the data will be maximized and the right information and knowledge will be delivered to the desk of the person who needs to access it. Governance of the data leads to governance of the results.
Faster and better decision-making
With the right information at the right time, collaborations are made easier and more efficient. A knowledge management system helps make for productive collaborations by providing relevant and useful information. Instead of decisions being made without a full picture, a KMS enables decision makers to understand and take into consideration: theories put to the test with large sample sizes, the results of trial and error, actual experience, and lessons that have been learned. Anything that helps a business be more efficient and help people make better-informed decisions is a plus. Having a system such as a knowledge management system that can truly help you make the most of a situation will only lead to better and better decisions as more experienced is gained.
Learning From Mistakes
Knowledge management enables us to learn from the business decisions that have and have not been made in the past. Instead of trying something out, it failing, and then another team trying the same thing again 6 months later only to find the same results, you can share your experiences and results so that you and others can learn from mistakes. This certainly requires people to be open about things that have gone wrong, as a knowledge management system can only collect information and produce knowledge if we feed it the right insight to do so. For example, if you make a business decision, such as an estimate for a new project and end up underestimating it by a large percentage, you can learn from your mistake and be better prepared for next time. Your team can also learn from the numbers and what went wrong. This also filters into faster and better decision making. The more experience you have and the more lessons you have learned, the more you will be able to support your next steps through knowledge and understanding (natural and system made).
Instead of only utilizing traditional methods to gain knowledge, knowledge management systems will continue to gain popularity, as people understand just how much they can benefit from using them. A team can make use of latest cloud computing technologies to manage things better. Imagine an inspirational business practice that you want to learn more about. Perhaps you have seen a new building technique that could stand a better chance against natural disasters? Learning from experience and data and then taking the knowledge learned to make better decisions down the road, such as more sustainable building, is beneficial for all. Instead of making the same mistakes or missing an opportunity for gained success, knowledge management systems give you a chance to perform better, to do better.