Lets consider the importance of knowledge management. In today’s economy, driven by information, the organization sees much more value in its intellectual assets than physical assets. Knowledge management helps to maintain the knowledge that must be shared. Furthermore, knowledge management helps an organization to do the following:

”¢ To stimulate innovation. Knowledge management provides a framework of building electronic and social networks to develop new products or services, it promotes and provides access to diverse ideas, thus giving others the opportunity to benefit from them.

”¢ To promote co-operation. Knowledge management increases the opportunities for cooperation, it enriches the exchange of explicit and indirect knowledge between people, it also encourages the free movement of ideas.

”¢ Encourage the use of learning opportunities. Knowledge Management facilitates and accelerates the learning process, it creates opportunities for individuals and groups to use this knowledge in practice; helps to bring information to the right people in an understandable context, which is aimed at addressing problematic issues; it emphasizes the importance of individual learning and raises it to an organizational level.

”¢ Increase social capital. Knowledge management increases the amount of transfer of individual knowledge in the organization, it facilitates the process of exchange within and outside the organization, at different times and in different places; and it also connects people with the necessary direct and indirect knowledge, with those to whom such knowledge is needed to perform job duties.

”¢ To attract and retain human resources. Knowledge management increases the results of training by emphasizing the value and benefits of knowledge for employees; it helps to organize knowledge that people have, that is, their “know-how” and “know-what”; it contributes to a successful career.

”¢ Create and use the structural capital. Knowledge Management turns intellectual capital into structural capital, and it focuses strategic thinking on the use of knowledge, as opposed to concentration on a budget and profits.

”¢ Increase productivity. Knowledge management helps to rationalize operations and reduce costs, improves the effectiveness of training by eliminating unnecessary or redundant processes, it makes a direct contribution to the ultimate goal / mission.

”¢ Share best practices and processes. Knowledge Management helps to share best practices in the organization;  it provides a framework for knowledge and innovation; it establishes criteria for individuals and teams within the company and externally, and it helps new employees adapt quickly to the culture of the organization.

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