Whenever you decide on investing in a new strategy, program, process,
or project, you need to make sure that it is really worth investing
and value-adding. You also need to analyze the cost-benefits of
such an investment and the return or value that you get out of that
investment. These are some issues that need to be considered before
going in for knowledge management initiatives.
Today's increasingly difficult economic times pose the need for
cost-effective initiatives such as knowledge management programs
and practices. Organization heads always need a clear understanding
of the bottom line Knowledge management benefits before they invest
in such initiatives. The Knowledge management benefits can be categorized
into three which include knowledge benefits, intermediate benefits,
and organizational benefits.
A typical example would be of an organization such as a manufacturing
firm or an academic institution or a government agency which has
numerous physical files. Categorization and segregation into working
databases allows the employees who need specific information to
access the databases more efficiently through word or category searches
instead of having to sift through so many folders. Updating of these
databases will also result in having the most recent and relevant
information and knowledge stored and easily accessible by any employee
who may need any specific information. .
The category of organizational benefits includes better/faster
innovation, improved customer service, reduced knowledge loss, and
increased productivity/better performance. These are the benefits
which will have an impact on the way an organization thinks and
operates to achieve its objective, for example, to provide quality
education, quality products and services, or quality programs to
bring about the good of civil society.