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The Importance of Knowledge Management for Small Businesses

Knowledge Management refers to explicit management of important information and knowledge individuals possess so that the knowledge is shared effectively and utilized by other people in the organization. It involves accessing, storing and transferring information. Today, technology permits these processes to take place more efficiently and effectively. However, every organization will have distinctive information technology needs. Knowledge management technology that has been carefully chosen for instance software will be able to meet the organization needs as well as knowledge management initiative goals.

With the ever-growing affluence of information available fast to anyone having an internet connection, today knowledge management is very important to small businesses. One of its major benefits to small businesses is better utilizations of resources available. This may include knowledge employees have to sales reports, marketing as well as customer satisfaction. By effectively maintaining and utilizing this information, past experience and also current personnel qualifications may be utilized in an efficient manner to promote and advance the business.

The ability to resolve problems through learning from previous mistakes is a strong benefit of knowledge management to small businesses. By tracking carefully successes and failures, small businesses may create an effective listing of best practices and this may assist them in every aspect from improved productivity to customer satisfaction.

If individuals can be able to access and share the knowledge, it offers a competitive advantage. Some of the areas where it provides a strong advantage include improving the quality and cost of existing services or products and speeding up new product development.

Knowledge management also connects individuals with information by classifying and coding the contents of a document in a meaningful manner. Knowledge that is effectively managed improves decision making, risk management, skill transfer and strategic planning. Considering knowledge as a business resource means putting importance on gathering, sharing as well as protecting it.

Knowledge puts information and data into context which allows people to use it in various useful ways. For instance having knowledge regarding a competitor assists to understand their plans as well as provides a chance to offset their disruptive activities. Utilizing knowledge from previous projects assists to improve effort level estimates and decrease problems that may occur on future projects.

Knowledge management in small businesses may be utilized to make the business more efficient by giving the leaders of the company current and better information.

It can also be used to support the growth of the business. By using the knowledge, existing employees are able to offer better services to customers and as the business grows, it provides an important resource for inducting as well as training new employees. Also, it reduces the possibility of lost knowledge and skills when the employees leave the company.

By having a centralized database, it is possible for better consistency to be created across the organization. It is also a resource that may assist employees on each level to be aligned with the organizations’ core values as well as its best practices. A strong knowledge management may also improve communication among and within departments and assist to unite all employees.

About the author:
Danny Duric holds a bachelor’s degree in Business Management. He likes to upgrade his knowledge and to share interesting things with others. He is writing for a company that provides BPO services.

Post By Praveen Rajarao (468 Posts)

Praveen Rajarao is a Software Tech Lead and in his spare time blogs on his website –http://www.dailymorningcoffee.com and http://www.techivy.com. His topics range from blogging to technology to affiliate programs and making money online and how-to guides. Daily Morning Coffee is also accepting Guest Posts from Professional Bloggers at this time, take a look at “Write For DMC” page for more details on the same.

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1 Response to " The Importance of Knowledge Management for Small Businesses "

  1. The ability to take care of problems through learning from past errors is a strong benefit of knowledge management to little companies. By monitoring properly achievements and breakdowns, little companies may create an effective record of best methods and this may assist them in every element from enhanced efficiency to client care.

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