| Whenever you decide on investing in a new strategy, | | | | knowledge loss, and increased productivity/better |
| program, process, or project, you need to make sure | | | | performance. These are the benefits which will have |
| that it is really worth investing and value-adding. You | | | | an impact on the way an organization thinks and |
| also need to analyze the cost-benefits of such an | | | | operates to achieve its objective, for example, to |
| investment and the return or value that you get out of | | | | provide quality education, quality products and services, |
| that investment. These are some issues that need to | | | | or quality programs to bring about the good of civil |
| be considered before going in for knowledge | | | | society. |
| management initiatives. | | | | In a constantly evolving and competitive environment, |
| Today's increasingly difficult economic times pose the | | | | organizations are faced with the problem of having to |
| need for cost-effective initiatives such as knowledge | | | | continuously improve in the area of creating innovative |
| management programs and practices. Organization | | | | products and service that would meet the constantly |
| heads always need a clear understanding of the | | | | evolving needs and wants of their customers. |
| bottom line Knowledge management benefits before | | | | Patronage from customers is the only way ahead for |
| they invest in such initiatives. The Knowledge | | | | the success of any organization both small and big. |
| management benefits can be categorized into three | | | | Considering the huge number of physical files in an |
| which include knowledge benefits, intermediate | | | | organization example, as the databases are organized |
| benefits, and organizational benefits. | | | | the decision maker has the necessary information and |
| A typical example would be of an organization such | | | | knowledge to substantiate or justify research and |
| as a manufacturing firm or an academic institution or a | | | | development initiatives that leads to more innovations |
| government agency which has numerous physical files. | | | | which in turn leads to the creation of new products |
| Categorization and segregation into working | | | | and services. |
| databases allows the employees who need specific | | | | These initiatives may seem a bit costlier for the |
| information to access the databases more efficiently | | | | company in the beginning stages. But if these initiatives |
| through word or category searches instead of having | | | | when looked at on a long-term perspective help the |
| to sift through so many folders. Updating of these | | | | organization to create products and services and then |
| databases will also result in having the most recent | | | | sell them to a market that needs or wants them. This |
| and relevant information and knowledge stored and | | | | helps the organization to actually reap the rewards of |
| easily accessible by any employee who may need | | | | satisfied customers translating into increased sales |
| any specific information. . | | | | revenues which helps offset the initial capital sunk into |
| The category of organizational benefits includes better | | | | the research and development initiatives. |
| faster innovation, improved customer service, reduced | | | | |