Company that wanted to be success must manage their knowledge management actively for these 3 reasons:
i) Facilitates decision-making capabilities.
Achieving great and high-quality decisions can be erupted by the overwhelming processed information. A company needs to plant a knowledge management system as to help the members of top management to share the information, cut through the noises that erupts the dissemination of information as well as improve the decision-making process. All in all, specifying a place for the knowledge management system can aid in producing a more informed and better decisions for the managers.
ii) Builds learning organization by making learning routine.
“To move ahead, one must often first look behind” (Garvin, 2000. p.106). by this quote it means that in order to move forward, a company must make learning a routine to improve themselves. This can be done through the assesments that is being done after an activity or event have taken place within the organization environment. The result of this assesment is that the company gets to identify areas for improvements as well as identify the success and/or failures of the activities/events.
iii) Stimulates cultural changes and innovation
A very well managed and active organizational knowledge can stimulates the cultural change and innovations of the organization itself by motivating its members to have a free flow of ideas. With a proper management of knowledge, managers are able to accept changes as well as develop ideas and insight which later on, on most of the time, lead to the developing the current ideas or we know it as innovation.
This is a reviewed article. The original article can be retrieved from: http://www.forbes.com/sites/lisaquast/2012/08/20/why-knowledge-management-is-important-to-the-success-of-your-company/