Knowledge Management in Companies: Definition, Importance and the Key Methods

1. Knowledge Management - A Definition
2. What does knowledge management have to do with transparency?
3. What are the goals of knowledge management in companies?
4. Knowledge Management Methods
5. Excursion: What new opportunities does AI offer for successful knowledge management?
6. How is successful knowledge management achieved in companies?
7. What tools enable successful knowledge management?
8. Conclusion

Knowledge is initially always tied to individuals. This can become a decisive factor for business success in companies, especially when critical business know-how is not shared within the company. This often leads to unwanted dependence on single persons and their resources. Therefore, knowledge management that overcomes these dependencies gains enormous strategic relevance from a company's perspective. In this article, you will learn which methods of knowledge management are particularly suitable in this respect, how to implement them in the form of automated solutions in companies, and what prerequisites must be fulfilled.

Knowledge Management - A Definition

Knowledge management is defined by the acquisition, development, transfer, storage and use of knowledge, as outlined in the Gabler Business Encyclopedia. The core tasks of knowledge management are thus: Acquiring knowledge, Collecting knowledge and Sharing knowledge. We learn in all areas of life with the goal of anchoring new knowledge beneficially - professional life is no exception. On the contrary: Here especially, it is necessary to anchor and standardize crucial knowledge and skills at the organizational level.

What does knowledge management have to do with transparency?

Knowledge is power. Entire business models and thus company success are based on knowledge. Yet building and maintaining knowledge is a great challenge for many companies. The currently high personnel turnover and the shortage of skilled workers put companies under enormous pressure. The reason: Knowledge has become an extremely scarce and therefore increasingly valuable resource. But how can knowledge be reliably maintained in companies?

A key prerequisite for this is: Transparency. Because only when knowledge in companies is systematically shared between employees and other knowledge providers, is it possible to build your own central knowledge database that all employees can access.

Transparency opens up a whole range of advantages for companies. In knowledge management, it is a crucial factor, as it facilitates access to information, promotes trust and cooperation, avoids redundancies, reduces errors, and creates a working atmosphere that fosters innovation. A positive side effect: Transparency also helps in identifying knowledge gaps and facilitates knowledge transfer. Companies can promote transparency through the use of knowledge management tools, clear guidelines, and a collaborative culture.

What are the goals of knowledge management in companies?

With transparent knowledge management, essential corporate goals can be achieved much more efficiently, especially as it focuses on the continuity of employee knowledge, the use of this knowledge for current business processes, its continuous further development and distribution throughout the company, and the promotion of innovation.

But the key point is: Efficient knowledge management reduces costs, provides valuable support for risk management, improves customer relationships and creates long-term competitive advantages, as it significantly ensures compliance with regulations and quality standards through documentation and monitoring of processes and procedures.

Knowledge Management Methods

There are various methods by which intact knowledge management can be installed in the various phases of the knowledge lifecycle. These include:

Planning Methods:

• Knowledge Strategy Development: determining the strategic goals and priorities for knowledge management.

• Knowledge Audit: evaluating existing knowledge and identifying knowledge gaps.

• Knowledge Management Roadmaps: creating plans and schedules for implementing knowledge management initiatives.

• Balanced Scorecard: using key performance indicators to measure the success of knowledge management initiatives.

Presentation Methods:

• Documentation and Knowledge Databases: creating written or digital resources for storing and distributing knowledge.

• Trainings and Workshops: imparting knowledge and skills through trainings and interactive workshops.

• Expert Interviews and Expert Directories: identifying and utilizing expert knowledge within the organization.

• Best Practice Documentation: (Use-case) collection and distribution of proven practices and experiences.

Creativity Methods:

• Brainstorming: generating new ideas and solutions through group discussions.

• Design Thinking: a creative approach to problem solving and idea development.

• Innovation Competitions: promoting creative ideas and solutions through competitions and rewards.

• Collaborative Tools and Platforms: using online platforms and tools for collaboration and idea generation.

Dialogic Methods:

• Community of Practice (CoP): groups of people with common interests and expertise who exchange ideas regularly.

• Peer Assist: exchange of experience between colleagues for problem solving and knowledge transfer.

• Lessons Learned Workshops: reflection and documentation of experiences and insights after project completions.

• Storytelling: using stories to pass on knowledge and experiences.

These methods can be combined and adapted according to specific requirements and goals to ultimately install a success-oriented knowledge management system in companies. Companies thus create a broad knowledge pool. However, there is still the risk of bias. This crystallizes around the question of who the information and knowledge come from and how they are passed on?

Background: There is indeed a real chance that subjective bias in the recording and dissemination of knowledge could possibly solidify undesirable thought patterns - knowingly and unknowingly. These thought patterns can manifest themselves in the generally accessible knowledge base throughout the company. This, in turn, jeopardizes the absolutely necessary neutrality of knowledge.

Excursion: What new opportunities does AI offer for successful knowledge management?

Bias risk can be mitigated by using data. That is to say: In knowledge management, data represent the new gold of the 21st century. The knowledge drawn from data brings a new kind of neutrality, reliability, precision, and speed to corporate decision-making processes.

Project Management Example: Projects are often planned and budgeted on a gut level. Misplanning is a common result. This often leads to unnecessary overload for employees, processes and resources. Why? We generate immense amounts of data every day using digital tools. Why don't we use this data to gain insights, i.e., knowledge, that leads to more sound decisions in less time?

There are a number of tools and knowledge management platforms that facilitate decision-making processes like project planning and budgeting through AI. They transform data into knowledge and make automated decisions based on this knowledge.

How is successful knowledge management achieved in companies?

To genuinely implement successful knowledge management in companies, companies should initially promote a culture of knowledge exchange and sensitize their workforce to it. They should

• develop a clear strategy,

• identify sources of knowledge (e.g., through the application of a knowledge map),

• use appropriate tools,

• provide training and incentives,

• protect information,

• assign responsibilities,

• measure success,

• integrate external knowledge, and

• embed knowledge management in the business strategy.

Only when a collaborative knowledge culture has become embedded in employees' minds can employees and companies fully benefit from a concrete knowledge management solution.

What tools enable successful knowledge management?

Knowledge management software is generally distinguished by its very high performance. It not only captures, identifies, and searches for information and knowledge resources, but also enables their shared use. These tools are capable of processing different types of data, text documents, presentations, audio, video, or image data, and much more.

The main task of knowledge management software is to ensure that employees, business partners, and customers of a company can access this information at any time and benefit from it. We are happy to introduce you to the top-rated tools:

Notion

Überblick

Confluence

Microsoft OneNote

Among the best-known tools are USU Knowledge Management, Notion, Asana, Confluence, neuroflash, the OpenAI chatbot, Google Bard or conversionmaker.ai. An overview can be found on our overview page from the category Wissensmanagement.

Conclusion

Knowledge drives innovation in companies. It has the potential to create a decisive competitive advantage. In today's work world, the partnership between humans and artificial intelligence is indispensable. To successfully conduct knowledge management in companies, careful planning and implementation is required. The aim is to create a centralized, accessible knowledge pool that is as broad as possible. However, due to the possibility of subjective distortions in the perception of knowledge, there is a risk of bias in the knowledge base.

Data and artificial intelligence (AI) help to reduce bias. They improve the neutrality, reliability, precision, and speed of knowledge processes. And that leads to better decisions. For example, AI can be used in project management to turn data into knowledge automatically and support planning or budget decisions. Various AI-based project management tools and platforms are available for this purpose.

To successfully implement knowledge management, companies should promote a culture of knowledge exchange, develop a clear strategy, and sensitize employees to this issue. Trainings and the creation of incentives can help. Only then should the corresponding tools be installed.

Overall, successful knowledge management requires a holistic approach that links technology, culture, and strategy to ensure efficient and neutral knowledge management. In this way, companies free themselves from unwanted dependencies that deprive them of valuable knowledge - either due to the shortage of skilled workers or the currently high staff turnover.