What is Knowledge Management?

What are the Types of Knowledge?

The definition of knowledge management includes three types—tacit knowledge, implicit knowledge, and explicit knowledge.

Tacit Knowledge

Tacit knowledge is acquired through personal or professional experiences, often without conscious awareness. It is highly intuitive and difficult to articulate, as it is shaped by an individual’s perceptions, emotions, and learned behaviors. This knowledge is often transferred through direct interaction, mentoring, or hands-on practice rather than formal documentation.

For example, an experienced sales professional may instinctively know how to handle different customer personalities based on years of client interactions. Because tacit knowledge is so personal and context-dependent, organizations must capture and transfer it through mentorship programs, storytelling, and collaborative learning.

Implicit Knowledge

Implicit knowledge is understood and applied in practice but isn’t formally documented. Unlike tacit knowledge, which is largely subconscious, you can verbalize and share implicit knowledge.

For instance, an employee working on a project for several months may develop insights into more efficient workflows or better ways to approach a task. These insights exist in their mind and influence their actions, but they are not yet written down or shared with others. Organizations can encourage the capture of implicit knowledge by promoting regular debriefings, feedback sessions, and open communication channels.

Explicit Knowledge

Explicit knowledge is formalized, structured, and documented knowledge that can be easily stored, accessed, and shared. It is the most tangible form of knowledge, often found in manuals, databases, reports, training materials, and knowledge repositories.

Examples of explicit knowledge include a project manager documenting lessons learned from a completed project, an employee handbook outlining company policies, or a knowledge base containing FAQs and standard operating procedures (SOPs). Since explicit knowledge is easy to store and retrieve, organizations should invest in knowledge management systems (KMS) to ensure that valuable information remains accessible and current.

What is the Knowledge Management Process?

The typical knowledge management process is comprised of the following steps:

Discovery

Managing knowledge begins with discovery, extracting information from data that can benefit your organization.

Capture

Knowledge capture relates to the knowledge that your organization already possesses. This knowledge may be held by individual employees, teams, documents, or processes. Knowledge capture documents this knowledge to be shared and communicated across the business.

Organization

Knowledge organization refers to the classification, categorization, and indexing of information. Knowledge organization enables easy retrieval, navigation, use, and sharing of information among employees and teams.

Assessment

Knowledge assessment verifies and validates information to ensure that it is accurate, consistent, and up-to-date. Knowledge assessment requires reviews by internal experts. Integrated validation features within knowledge management systems also perform the assessment.

Sharing

Knowledge management does not provide any benefit without knowledge sharing. An organization’s culture plays a key role in information sharing. Effective knowledge management systems also enable knowledge sharing with employees and users who need it to benefit the organization.

Use

Knowledge is used when an individual or team takes expertise and applies it to communicate more effectively with colleagues or customers, enhance efficiency, improve business operations, or complete a strategic task.

Creation

Implementation of effective knowledge management processes drives knowledge creation. Individuals and teams build on knowledge shared by others within the organization and, in the process, create knowledge. This is an example of a self-reinforcing feedback loop: higher knowledge-sharing levels lead to higher knowledge creation.

Why is Knowledge Management Important?

Consider the following example: a company employee spends many months working on a project. During the project, the employee develops an insight into a particular issue. This insight is based on experience and is not immediately apparent to other employees. This insight enables the employee to make vastly better decisions.

If the employee were to keep the insight to himself, other employees could not benefit from it. This is especially true if the employee leaves the organization soon after. If this were to happen, then valuable organizational knowledge would be lost.

A better way is to ensure the insight is recorded and shared with other employees in the organization. This is where knowledge management helps organizations capture, distribute, and use organizational knowledge.

Knowledge management protects your business and creates opportunities for enhancing the workforce’s capabilities. Making key information widely available helps employees improve performance and make better decisions. This ultimately leads to an improved bottom line for the business.

What are the Benefits of Knowledge Management?

Knowledge management offers multiple benefits for organizations.

Creation of a Collaborative Knowledge Sharing Culture

Easy-to-use and effective knowledge management systems foster a culture of knowledge transfer and sharing, which leads not only to knowledge retention but also to knowledge creation.

Preservation of Organizational Knowledge

With successful knowledge management, organizational knowledge is maintained and secured. Without knowledge management, organizational learning is lost if it is not captured and documented or employees move to other organizations or retire.

Better and Faster Decision Making

As the saying goes, you don’t have to reinvent the wheel. Once an organization and its employees learn the best way to make decisions in a particular scenario, capturing that knowledge and sharing it throughout the organization increases the probability that future decisions in similar situations will be taken faster and will lead to the desired outcomes.

Improved Efficiency

By reducing the time spent searching for relevant information, knowledge management empowers employees and helps businesses operate more efficiently.

Increased Innovation

Innovation doesn’t only come from building on existing ideas or products. It also comes from new ways of thinking and new approaches to problem-solving. For example, a new approach used by a team, if shared across the organization, can lead to innovative solutions for problems being worked on by other teams.

Enhanced Customer Service

With fast access to relevant information, customer support staff can serve customers better and faster. This leads to improved customer satisfaction and loyalty.

What are the Challenges of Knowledge Management?

Challenges related to knowledge management include:

Motivation

Employees are often set in their ways. Therefore, team leads and managers need to motivate employees to share their knowledge with others. Organizational culture impacts whether knowledge management is successful or not.

Technology

Technology and tools used for knowledge management are constantly changing. Keeping up with the changes is a challenge that requires constant learning and re-skilling.

Security

Knowledge sharing offers numerous benefits for organizations. However, access to sensitive information must be controlled by implementing processes and procedures.

Accuracy and Relevance

Information changes rapidly: what was relevant yesterday might not be applicable today. It is, therefore, necessary to implement checks to ensure the accuracy and relevance of information and knowledge.

Knowledge Management Best Practices

Implementing knowledge management best practices can put organizations on the road to success by ensuring that knowledge is effectively captured, shared, and utilized. By following structured approaches, businesses can foster innovation, improve efficiency, and maintain a competitive advantage.

Assess Organizational Culture

Before implementing a knowledge management system, organizations should assess their culture, employees’ needs, and capabilities. A company’s openness to collaboration, willingness to share information, and existing communication structures all impact the success of knowledge management initiatives. Conducting surveys, interviews, or focus groups can help determine how employees currently interact with knowledge and identify potential gaps.

Implement Strategically

Employees often resist changes to the existing company culture, making a well-planned rollout strategy essential. Implementation obstacles should be anticipated, and proactive measures should be taken to address them. Providing adequate training and support ensures employees feel comfortable using new systems, increasing adoption rates. A phased approach, starting with pilot programs before full deployment, can help ease the transition.

Motivate Employees

Since employees may be hesitant to change their habits, managers must actively encourage knowledge sharing. Recognizing and rewarding employees who contribute to knowledge-sharing initiatives can reinforce positive behaviors. Creating a culture where employees see the value in sharing information leads to greater participation and long-term success.

Implement Knowledge Ownership

Attaching employee credit to knowledge documents motivates employees to contribute and provides accountability. When knowledge has clear ownership, others can seek clarification or additional insights. This also enhances trust in the accuracy and reliability of shared information.

Create Knowledge Exchange Policies

Clear knowledge exchange policies ensure employees can access the correct information when needed. Policies should outline procedures for sharing knowledge when employees leave, onboard, or work on cross-functional projects. A structured approach to knowledge exchange prevents information loss and facilitates continuity within the organization.

Knowledge Management Tools

Knowledge management tools help streamline the creation, storage, and dissemination of knowledge within an organization. These tools ensure information is captured efficiently and remains accessible for future use. Organizations can use various tools to enhance collaboration and improve decision-making.

Document Management Systems

A document management system (DMS) defines the processes and procedures for handling documents throughout their lifecycle, including storage, access, and distribution. Modern Electronic Document Management Systems (EDMS) offer workflow automation, controlled access, version tracking, and advanced search capabilities, making document retrieval fast and efficient.

Content Management Systems

Content management systems (CMS) allow users to create, manage, and modify digital content without requiring specialized technical skills. They provide a structured framework for organizing knowledge, enabling organizations to publish and update information seamlessly. CMS platforms are widely used for knowledge bases, websites, and internal communication portals.

Intranets

An intranet is a private network accessible only to employees of an organization. Corporate intranets facilitate information sharing, collaboration, and communication across teams. They serve as central repositories for policies, procedures, and company news, helping employees stay informed and connected.

What is a Knowledge Management System?

A knowledge management system is a set of procedures, processes, and tools to implement knowledge management in an organization. Modern knowledge management is implemented through dedicated software systems optimized for capturing, organizing, storing, and sharing knowledge.

Knowledge Management System Examples

Lessons Learned Database

A lessons-learned database contains information from lessons learned during past projects and from business practices. The database includes information gathered from people who have tackled problems. It includes defined issues or situations, actions, outcomes, and results. Lessons learned help to

• Prevent people from repeating mistakes made by people in similar situations in the past.
• Optimize decision-making when current scenarios mirror scenarios faced by others in the past.
• View current problems “with a new set of eyes”.

Communities of Practice

Communities of practice are individuals who discuss problems, opportunities, lessons learned, and other information gained from users. A good knowledge management system allows these groups to share information.

Knowledge Base

A knowledge base is a library of information about products and services. It typically includes answers to frequently asked questions, how-to guides, and troubleshooting instructions. Its purpose is to make it easy for people – within and from outside the organization – to find solutions to their problems without asking for help. Knowledge bases use a combination of text, image, and video-based content.

Internal Knowledge Base

An internal knowledge base is typically utilized to allow employees to collaborate and share all company knowledge and information internally. When creating an internal knowledge base, you can include anything for internal use. It is internal because it is intended to be used only by the employees of an organization.

This system is usually accessible via an organization’s intranet or an employee-only website that requires a secure login. Some companies use a curated, searchable collection of company policies and procedures stored in a content management system (CMS) that employees can access at any time.

External Knowledge Base

An external knowledge base – a customer-facing knowledge base – is where customers can learn anything they need to know about a company’s products and services. It is usually public to everyone and can be easily found online. If you browse through any software’s Help and Documentation section, that’s their external knowledge base.

Feedback Database

Feedback from actual users provides valuable insight that can help you improve your products and services. You can have a database that collects feedback from customers and employees. The gathered input is accessible to the design department and other interested departments.

Research Database

You can use a research database to

• Track customer data results collected via quantitative and/or qualitative research.
• Track data about products and services offered by competitors.

This database can help your design and marketing teams develop products that provide a great customer experience and beat competitors in price, features, and benefits.

How to Build an Effective Knowledge Management System

You can take the following steps to build an effective knowledge management system.

Establish Goals and Objectives

The most important part of any initiative is to list the short-term and long-term goals. Without clarity, it becomes hard to distinguish between what’s important and what’s not. Some examples of your goals could be improving the customer experience, taking advantage of AI, and improving the rate of innovation.

Select Information that the Knowledge Management System Will Capture

You can select the types of information your knowledge management system will capture based on your goals. This will help you choose the sources of information and data. To help you decide what to include in the system, you can:

• Discuss with your teams about issues that come up frequently.
• Analyze the types of problems frequently reported by customers.
• Use analytics to find what customers search for on your site.
• Search for and analyze what customers say about you on social media.

Organize the Knowledge Management System

The next step is to organize the knowledge management system so that users can easily find the information they are searching for. An information architect can help you design a system that will help you achieve your goals.

Continuously Update the Knowledge Management System

Analytics and user feedback can help you pinpoint what is working and what is not. You can then make improvements to the system. This is an ongoing process that will continue for as long as you maintain the knowledge management system.

FAQs

Here are the most frequently asked questions about knowledge management.

What are knowledge management strategies, and why are they important?

Knowledge management (KM) strategies are systematic approaches organizations use to capture, organize, share, and utilize information effectively. These strategies help businesses improve decision-making, enhance collaboration, and retain institutional knowledge. By implementing strong knowledge management strategies, organizations can ensure that valuable knowledge is easily accessible, reducing redundancy and fostering innovation.

How can a knowledge management team improve information sharing?

A knowledge management team plays a critical role in organizing, maintaining, and facilitating the flow of information within an organization. This team is responsible for implementing best practices, ensuring knowledge is properly documented, and encouraging employees to share insights. With a dedicated knowledge management team, companies can create a culture where knowledge is preserved and easily transferred, improving overall efficiency and productivity.

What are knowledge management initiatives, and how do they benefit organizations?

Knowledge management aims at specific projects or programs designed to enhance the creation, storage, and dissemination of information within a company. These initiatives can include the development of knowledge-sharing platforms, training programs, and implementing knowledge repositories. By investing in knowledge management initiatives, organizations can ensure that valuable knowledge is retained and leveraged to drive business success.

How can organizations protect and utilize valuable knowledge?

Valuable knowledge refers to critical insights, best practices, and expertise contributing to an organization’s success. To protect and utilize this knowledge, businesses should implement robust documentation processes, encourage open communication, and adopt digital tools that facilitate knowledge sharing. By preserving valuable knowledge, companies can prevent knowledge loss due to employee turnover and maintain a competitive edge.