Knowledge Management and its Benefit to Business Assignment

fellowship Management and its Benefit to Business - assigning Example2. Background Knowledge management is defined as a concept with which a business enterprise or an enterprise collects, organizes, distributes, and analyzes individuals and groups companionship within an organization in ways that affect the consummation of the business directly (Oliver & English, 2007). Knowledge management has also been defined as the work at of identifying and analyzing available, relevant, and required fellowship 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 earns 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 makin g of the right decisions. Besides, it has been associated with increasing efficiency in the organizations, and this is critical in upward(a) organizational productivity and performance (Davidson, 2002). Also, knowledge management tends to promote yield 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 signifi tintly contributes towards improved team communication (Pauleen & Gorma, 2011). In addition, it reduces the time interpreted in problem solving process in the business because there is knowledge of what the problem whitethorn 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 end 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 place this is important in helping business to devise ways through which a business can increase its market share in order to increase its p rofitability. Furthermore, improved profitability is another benefit associated with knowledge management. Since knowledge management provides business with ways of reducing its costs, increasing market share, enhancing customer satisfaction, and alter team communication, business performance is bound to improve and, therefore, lead to improved profitability (Oliver & English, 2007). While it is understand that knowledge management is of great value and benefits, it appears that people have