Why is knowledge management essential?

In a knowledge society in which the half-life of knowledge is becoming ever shorter, knowledge management is a crucial competitive factor. Companies without a clear strategy risk losing valuable knowledge through employee turnover or disorganized processes.

The importance of knowledge as a resource

• Increasing innovative strength: According to a study by, companies with structured knowledge management develop McKinsey (2020) have twice as many innovative products and services as their competitors.

• Avoid loss of knowledge: 42% of companies say that the loss of employee knowledge after layoffs or retirement is a major risk.

• Faster problem resolution: Access to documented knowledge reduces issue resolution time by an average of 35%.

Individual and structural knowledge in focus

• Individual knowledge: Competencies, experiences and intuitive know-how of individual employees. Challenge: This knowledge is often difficult to capture and share with others.

• Structural knowledge: Knowledge documented in IT systems, manuals or processes. It forms the basis for efficient collaboration and knowledge transfer.

Advantages of knowledge management in the company

Systematic knowledge management helps companies make optimal use of their resources, improve collaboration and secure competitive advantages. It not only reduces the effort involved in searching for information, but also enables innovation and protects against loss of knowledge.

1. Increased efficiency and time savings

By centrally organizing knowledge, employees save time and work more productively. According to one McKinseystudy, employees spend an average of 1.8 hours per day searching for information. That's an average of 9.3 hours per week. With a well-structured knowledge management system, this time can be significantly reduced.

2. Promote innovation

Targeted use of knowledge is the key to creative problem solutions and innovative ideas. Companies that use knowledge networking platforms report better results in product development and a higher rate of innovation.

Tip: Cross-functional teams that have different sources of knowledge achieve particularly effective solutions. Regular workshops or digital tools such as brainstorming platforms can support this.

3. Protection against loss of knowledge

Employee changes or retirement represent a challenge for many companies as valuable knowledge can be lost. Knowledge management offers solutions to minimize this risk, for example through structured documentation or knowledge transfer programs.

Example:
A medium-sized consulting company established a mentoring program in which experienced employees pass on their knowledge to younger colleagues. This meant that a large part of the specific specialist knowledge could be secured in the long term.

4. Stronger employee retention

Employees who have access to structured knowledge feel more competent and work more efficiently. This increases motivation and reduces fluctuation. A clear advantage for companies that rely on long-term retention of their talent.

Methods and models of knowledge management

Knowledge management in companies includes a variety of methods and models that can be adapted depending on the company structure, industry and objectives. In addition to proven concepts like that SECI-Modell and the intellectual capital statement, there are creative approaches that make the process easier and more attractive.

1. The SECI model: sharing and transforming knowledge

The SECI model developed by Nonaka and Takeuchi describes how knowledge is generated and passed on in companies. It distinguishes four phases:

• Socialization: Individual knowledge is passed on through exchange and joint activities.

• Externalization: Tacit knowledge becomes explicit, for example through documentation or training materials.

• Combination: Different sources of knowledge are combined and restructured.

• Internalization: Employees apply new knowledge and integrate it into their daily work.

“Knowledge is the only resource that increases through use.” – Karl-Ernst Schott

2. Methods for securing knowledge

Various methods are available to secure and pass on knowledge. For example, an overview could be presented in table form:

3. Creative approaches to knowledge management

In addition to classic methods, creative approaches are becoming increasingly important:

• Gamification: Playful elements such as knowledge quizzes or points and reward systems motivate employees to actively participate in knowledge management.

• Micro-Learning: Instead of extensive training, short, concise learning units are provided in video or text form that can be easily integrated into everyday work.

• Knowledge podcasts: Experts from the company share their knowledge in short audio formats that employees can consume flexibly.

Knowledge management models at a glance

In addition to the SECI model, there are other approaches that companies can use:

• Intellectual balance: Intangible resources such as knowledge, skills and networks are evaluated in order to measure the value contribution to the company's success.

• Knowledge Spiral: This model focuses on continuous knowledge building and continuous development through feedback loops.

Knowledge management systems and tools

Knowledge management systems are crucial for efficiently managing, sharing and disseminating the accumulated knowledge. Modern tools enable companies to store knowledge centrally, simplify access and promote collaboration.

Knowledge management systems: how they work and their benefits

Knowledge management systems provide a structured way to store, search and share information. They often consist of databases, document management systems and interactive platforms. A knowledge management tool can include the following functions:

• Document management: Allows you to store and organize documents and files that contain knowledge.

• Knowledge bases: A one-stop shop to find and search information on specific topics.

• Collaborative Tools: Forums, chat systems and virtual teams that promote knowledge sharing.

• Reporting and analysis tools: Functions that make it possible to monitor and evaluate the use of knowledge.

Important knowledge management tools

Choosing the right knowledge management tool can make the difference between an inefficient work environment and a highly productive one. Different tools offer different features that facilitate knowledge sharing, training, and access to critical knowledge. Here we present some of the best-known tools that help companies take their knowledge management to the next level.

1. Bounti

2. Confliuence

3. SharePoint

4. Slack

5. Notion

1. Bounti: The tool for effective employee training and knowledge transfer

Bounti is a popular solution for companies that want to efficiently train their frontline workers and involve them in knowledge sharing. The mobile platform offers a variety of functions that optimize the onboarding and continuous training of your employees:

• AI-powered course creation: Bounti automatically creates customized training tailored to employee needs.

• Checklists and playful learning: Gamification elements and interactive checklists enable employees to learn quickly and effectively.

• Linguistic flexibility: Bounti supports over 100 languages, enabling companies to train global teams without language barriers.

• Accessibility: Because Bounti is available as a mobile platform, employees can access training content anytime, anywhere.

Advantage: Bounti not only saves time and money creating and delivering training, but also increases employee productivity and engagement. It is an extremely efficient tool, especially for companies with many frontline workers.

Example:
An international retail company used Bounti to train its sales staff. Thanks to the mobile learning platform and advanced onboarding software, employees were quickly trained in their new tasks, resulting in a 100% faster onboarding time.

2. Confluence: The wiki solution for teams

Confluence is a popular tool for documentation and knowledge organization. It provides an easy way for teams to create, share and store information. With Confluence, companies can create wikis, centrally manage documents and share information in a collaborative work environment. The tool is particularly suitable for documenting processes and collaborating on projects.

Advantage: Confluence allows teams to work together on projects while accessing a central source of knowledge.

3. SharePoint: document management and internal communication

SharePoint is a Microsoft solution that helps companies manage and store documents. It allows for easy intranet creation, document sharing, and project collaboration. SharePoint is particularly suitable for large companies that have many documents and complex workflows.

Advantage: SharePoint enables effective document organization and promotes knowledge sharing through seamless integration with Microsoft 365 applications.

4. Slack: Real-time communication and knowledge sharing

Slack is a popular communication tool that is particularly used in agile companies. It promotes rapid knowledge sharing through chat and channel features where teams can share information and ideas instantly.

Advantage: Thanks to the high flexibility of use (channels, direct messages), companies can use Slack effectively to spread knowledge directly and in real time.

5. Notion: All in one – notes, tasks and knowledge organization

Notion offers an all-in-one workspace solution where employees can combine notes, to-do lists and knowledge bases in one tool. It is particularly suitable for smaller teams or companies looking for a flexible and simple solution to organize and share knowledge.

Advantage: Notion allows for a customized knowledge base that can be easily structured according to the needs of the team.

Knowledge management process in the company

The knowledge management process is crucial to systematically capture, store, share and apply the accumulated knowledge. A structured process ensures that knowledge continuously grows, is maintained and is quickly accessible.

Without a clearly defined process, valuable knowledge could be lost or used inefficiently. In this section we will discuss the most important phases of the knowledge management process and explain how companies can implement it effectively.

1. Identify and capture knowledge

The first step in the knowledge management process is to identify the knowledge that is important to the company. This can include both structured knowledge (e.g. documents, processes) and individual knowledge (e.g. employee experiences and specialist knowledge).

Methods for identifying and recording knowledge:

• Interviews with experts: Interviews or regular exchanges with experts help to identify and document valuable knowledge.

• Brainstorming sessions: Workshops or meetings where employees jointly develop ideas and solutions to challenges help to extract knowledge.

• Automated tools: Tools like Bounti or Confluence make it possible to systematically capture knowledge and store it centrally.

2. Store and organize knowledge

The stored knowledge must be organized in such a way that it is easily accessible and transparent. Structured storage of documents, data and other sources of knowledge ensures that employees can quickly access the information they need.

Methods for storing and organizing knowledge:

• Knowledge bases: A central database in which knowledge is categorized and organized by topic or department makes it easier to find relevant information.

• Tagging and categorization: Adding keywords or tags to documents and articles helps make them more discoverable.

• Versioning: Versioning of documents ensures that the latest version is always available and older versions are archived.

3. Share knowledge and communicate

The next step in the knowledge management process is to share knowledge within the company. This not only promotes collaboration, but also ensures that all employees are up to date and can use existing knowledge efficiently.

Methods of knowledge transfer:

• Wikis and documentation: A central location where employees can contribute and access existing knowledge makes knowledge sharing easier.

• Training and workshops: Regular training and workshops on specific topics ensure that knowledge is continuously passed on to new employees.

• Mentor programs: Experienced employees can act as mentors for new colleagues and pass on their knowledge directly.

4. Apply and improve knowledge

The goal of knowledge management is not only to store and share knowledge, but also to apply this knowledge to improve company processes and strategies. The knowledge gained should be integrated into daily work to increase efficiency and minimize errors.

Methods of applying knowledge:

• Best practices and process optimizations: Applying best practices identified through knowledge management can help standardize and improve processes.

• Feedback loops: Through continuous feedback, companies can ensure that the knowledge applied actually leads to the desired results.

• Innovation through knowledge: Companies can use the collected knowledge to develop new products, services or business models.

5. Continuously update and maintain knowledge

The knowledge management process does not end after the knowledge has been applied. To ensure that knowledge remains current, it must be continually checked and updated.

Methods of knowledge maintenance:

• Regular reviews: Regular reviews and updates of knowledge bases ensure that outdated knowledge is sorted out and new knowledge is added.

• Feedback from employees: Employees should be regularly encouraged to share their knowledge and make suggestions for improvement.

Common challenges and solutions in knowledge management

Knowledge management can bring with it a variety of challenges. These range from overcoming resistance among employees to dealing with huge amounts of data. But there are also proven solutions for these challenges that can ensure the success of knowledge management in the company.

Employee Resistance: How to Use Change Management Effectively

One of the most common stumbling blocks when introducing a knowledge management system is employee resistance. Many are used to sharing their knowledge in informal networks and are reluctant to document it in a central database. To overcome this resistance, it is crucial to implement change management methods.

• Solution approach:
  Well-thought-out change management includes clear communication that illustrates the benefits of the knowledge management system for employees. Training and workshops help to reduce uncertainty. In addition, knowledge management should be presented as a valuable tool and not as an additional burden. Employees need to understand that they benefit from the central source of knowledge because it makes their daily work easier and helps them find solutions more quickly.

Overwhelming amounts of data: Create structure through categorization and prioritization

With the continuous collection of knowledge, the amount of information also grows. These huge amounts of data can seem overwhelming and make it difficult to keep track. A structured approach is required here.

• Solution approach:
  An effective method is to categorize and prioritize knowledge. Create a clear system for classifying data so employees can access the information they need. Knowledge can be organized by introducing tagging, metadata and a clear folder structure. Additionally, prioritize knowledge based on urgency and relevance so that the most important information is accessible more quickly.

Missing resources: How to implement knowledge management on a small budget

Another common problem in many companies is the limited resources for knowledge management initiatives. Small and medium-sized companies in particular may lack the financial resources and personnel to implement a comprehensive knowledge management system.

• Solution approach:
  It is possible to establish effective knowledge management even with small budgets. Start with simple and inexpensive tools, such as internal wikis or cloud-based platforms that require little investment. Additionally, promote a culture of knowledge sharing by motivating employees to actively share their knowledge. As the company grows and more resources become available, you can gradually expand the knowledge management system.

Conclusion: Knowledge as the key to success

Knowledge management is much more than just a collection of information – it is a strategic approach to unlocking the potential of the entire company. Through the targeted use of knowledge, companies can not only increase their efficiency, but also promote their innovative strength and secure their long-term competitiveness.

Implementing knowledge management is an ongoing process that requires patience, adaptability and continuous improvement. However, it is the key to sustainable success, as knowledge is now considered one of the most valuable resources in a company.

Use the advantages of well-thought-out knowledge management to future-proof your company and optimally support your employees. Because the knowledge you build today will ensure your success tomorrow.

FAQs: Knowledge management in the company

What is knowledge management in a company?

Knowledge management in companies refers to the process of identifying, recording, storing, disseminating and using knowledge within a company. The goal is to use knowledge effectively to increase performance and innovation and achieve competitive advantages.

What methods are there in knowledge management?

• Knowledge sharing: Sharing knowledge between employees to promote collaboration.

• Knowledge retention: Documenting knowledge in a structured form to make it accessible in the long term.

• Knowledge acquisition: Collection and use of external knowledge, e.g. through training or partnerships.

• Knowledge transfer: Passing on knowledge to other employees to expand their skills.

How does the knowledge management process work?

1. Collection of knowledge: Knowledge is collected through employees, data and experiences.

2. Categorization and structuring: The knowledge is categorized, stored and organized.

3. Distribution and accessibility: Knowledge is made available to the right employees at the right time.

4. Application of knowledge: The knowledge is integrated into daily work and used to improve work processes.