Though companies function as a single entity, there are multiple silos within every organization. The purpose of knowledge management is to unite these valuable yet fragmented pieces of information together and make them accessible to all the employees of an organization in a streamlined and organized manner to achieve goals and objectives.
According to a survey, Fortune 500 companies lose around $31.5 billion (about $97 per person in the US) a year by failing to organize and share knowledge. Though knowledge remains as the number one asset of an organization, companies are not doing enough to preserve and share it. Having a good knowledge management system will help companies in the following areas.