Knowledge Management and its Benefit to Business Assignment

Knowledge Management and its Benefit to Business - Assignment Example 2. Background Knowledge management is defined as a concept through which a business or an enterprise collects, organizes, distributes, and analyzes individuals and groups’ knowledge within an organization in ways that affect the performance of the business directly (Oliver & English, 2007). Knowledge management has also been defined as the process of identifying and analyzing available, relevant, and required knowledge processes and assets within an organization with the primary aim of achieving organizational goals and objectives. Over the years, knowledge management has proved to be an effective tool in enabling organizations to achieve their objectives (Pauleen & Gorma, 2011). There are numerous benefits that are associated with knowledge management. The first one is that it helps to ensure that right information gets to the right individuals at the appropriate time in order to facilitate making of the right decisions. Besides, it has been associated with increasing efficie ncy in the organizations, and this is critical in improving organizational productivity and performance (Davidson, 2002). Also, knowledge management tends to promote growth and learning among employees. Employee learning and growth is not only crucial in boosting employee satisfaction but also in enhancing their productivity at work (Collins et al., 2010). Since knowledge management helps in making better decisions in the organizations, it enables organizations to reduce costs because decisions on cost-related issues are appropriate and aimed at reducing costs in order to increase profitability. Along with that, it helps business avoid unnecessary cost because people involved know what the right cost is to incur through knowledge management process (Esposto & Abbott, 2011). Moreover, knowledge management is beneficial in the sense that it improves team communication. The process of collecting, sharing, and analyzing knowledge with the organization promotes communication among those involved, and this significantly contributes towards improved team communication (Pauleen & Gorma, 2011). In addition, it reduces the time taken in problem solving process in the business because there is knowledge of what the problem may be in the business and what the possible solutions should be. More importantly, knowledge management enhances customer satisfaction and participation. Knowledge management involves collecting, sharing and analyzing knowledge on a lot of issues including those about customers. The knowledge analyzed regarding customers can be used to create ways through which customer participation and satisfaction can be improved (Collins et al., 2010). Additionally, it can help a business have a better understanding of the market; this is important in helping business to devise ways through which a business can increase its market share in order to increase its profitability. Furthermore, improved profitability is another benefit associated with knowledge manageme nt. Since knowledge management provides business with ways of reducing its costs, increasing market share, enhancing customer satisfaction, and improving team communication, business performance is bound to improve and, therefore, lead to improved profitability (Oliver & English, 2007). While it is understood that knowledge management is of great value and benefits, it appears that people have