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How a Knowledge Management System Helps an Organization in Decreasing Support cost?

In this blog, we will talk about how knowledge management systems help organizations and the benefits of a knowledge management system in your company. We will help you understand what exactly you stand to gain with a KMS in your company.


When you want to run a business efficiently, one of the most important things to understand is that you must save as much capital as you can. However, this does not mean that you restrict yourself from spending the cash where it is necessary. There are some investments that are worth it in the longer run. It is also necessary to make the most out of whatever you spend or invest in.

Cost savings is really helpful to companies in the future because it helps them accumulate money for the future. To help you understand better, the spread of this disease COVID-19 has had a deep financial impact around the world and has been bringing down a lot of companies. Yet there are many other organizations that are functioning normally (after adapting to a work-from-home culture). Despite losing clients, this second group of companies doesn’t feel the need to lay off their employees or to cut salaries. This is the result of effective planning and investing in future-proof strategies that reduce costs.

One such strategy is knowledge management. If this is a novel term for you, feel free to read our blog on the topic here: What is knowledge management?

What is the importance of knowledge management?

Importance of knowledge Management System

Knowledge management is an integral part of any organization because it helps in boosting the efficiency of decision-making abilities.

To make sure that all the employees have access to the knowledge and overall expertise of the organization, effective knowledge sharing is a crucial process. This leads to the formation of a smart workforce who are able to make quick decisions that are in the best interest of the company.

It is easier to encourage innovation and creativity in the organization with the practice of knowledge sharing. Customers also benefit from increased access to best practices, leading to improved customer support. This even helps the company to reduce the employee turnover rate.

Being so important to the management and knowledge workers in an organization, the importance of knowledge management keeps growing with every passing year. As the market for your industry becomes crowded, it is advisable to stay ahead of the curve. One way to stay ahead is to build your company in a flexible manner with the help of the right tools, knowledge management processes, and technology for understanding and bringing improvements to the way that you store information. This helps you spot issues before they arise and respond to them with new innovations and solutions.

Benefits Of Knowledge Management System In An Organization

Benefits of Knowledge Management System
In this section, we will talk about the various roles of a knowledge management system in an organization and how one can benefit from a proper knowledge base.

Here are some of the ways in which a knowledge management system should help an organization:

1. Employees spend their time on productive tasks

Most companies follow a hierarchy structure for their team. This means that most of the data with the higher value are also only with those at the top of the pyramid. If there is a lack of communication between those at the top tier and those at the bottom, then it will affect the quality of productivity and automatically reduce the number of sales too.

To avoid this, a content management software should be used to store everything that individuals in the company might need for various procedures and operations. This will help save time, offer the advantage of unrestrained and effective productivity.

This will also benefit the top-level knowledgeable employees in your company. How? Well, when they don’t have to spend a lot of time in guiding other people, they can utilize that time for focusing on their own tasks and being more productive.

2. Avoid burnout

Often, the most knowledgeable employees experience a burnout of sorts. This happens due to the extreme levels of pressure on them. When you lose an employee who has been with the company for years on end, it becomes problematic. There are many junior employees who are dependent on the person and it becomes difficult to replace such people.

This also costs the company a significant amount financially and there are other problems too. Moreover, whoever replaces the old employee, that person will also take a significant amount of time to adjust to his new position.

Of course, it is inevitable and unavoidable at times. People will quit but you can reduce the burnout for employees significantly by installing a knowledge management system.

3. Avoid recreation of existing knowledge

Many times, we create a document with some data and forget to update it. After some time, it feels outdated and we set out to recreate the same data in a new format. Employees spend a lot of their valuable time recreating resources rather than creating new ones. This is a wast of many resources like time, people and others.

To avoid this from happening, you need to install a good knowledge base management system in your company. With the help of a knowledge management system in place, you will be able to divert your resources to better tasks such as customer support, upselling, adding new information to the knowledge and much more. This will help you get ahead instead of being stuck in the same loop.

4. Reduce research time

One other way in which a knowledge management system benefits an organization is that it reduces the needless amount of time that people spend while researching for information. A lot of time is spent in the research work especially when the company lacks a centralized information resource.

With good knowledge software, you will be able to see how a knowledge management system helps an organization in saving time and thereby, saving money.

5. Lower costly mistakes

A company has many different aspects apart from the core tasks. Apart from the core tasks, the other important departments are accounting, human resources, management, quality assurance, and customer support. And although it is important to ensure that there are no mistakes in the core functionality of the company, it is equally important that there are no mistakes in the other departments. A major mistake in any place will cost your company dearly financially.

If you want to find a way to avoid these costly errors, you can set up a knowledge management system that has step-by-step guides of tried and tested methods in your company. However, you need to ensure that the information in the knowledge management systems in fresh and up to date at all times so that the relevancy and accuracy are maintained.

6. Develop standard workflow

Often, companies that shirk away from using standardized workflows and processes tend to lose money when they are working on the production. A knowledge management system allows you and your company to identify as well as establish an effective method for every task.

For example, you can have a defined method or the best way to sell your services or products. This will be formed on the basis of the experience and knowledge of your employees. Then, the same information will be used in your company to encourage employees and asking them to use the right resources at the right time.

7. Get more customers easily

If your company is offering or planning to offer services on a monthly basis, then it becomes important for you to focus on keeping the customer base with yourself. This means that while you are busy acquiring new customers and turning new leads, you will have to provide the older customers with the right kind of customer service to make sure that they stay with you. By focusing on delivering a great experience and keeping customers happy, the chances of increasing your retention rates become stronger with time and experience.

Moreover, knowledge management systems encompass internal as well as external resources. They play a major role in customer satisfaction too. Would you like to know how? The thing is that internal knowledge management gives your agents the power to deliver fast service and the right answers to customer queries. But with the help of external information management, your company will be able to ensure that customers can solve the majority of their queries without additional help.

8. Faster Training and Onboarding Processes

The training and onboarding process for employees is different from the onboarding processes for the customers. Both of them represent a gap in the profit of your company. Because while these processes are ongoing, there is no productivity and income generation. Companies sometimes try to cut short this period of un-productivity by reducing the time of training or onboarding. Although this will help your company start yielding the benefits earlier, it will be problematic in the longer run.

But the good news is that knowledge management systems do help in speeding up the training and also the onboarding processes. This is applicable for both the employees as well as the customers of a company.

If you provide the information that they need in one place, then you will be able to help all the new employees in hitting the ground at a speed. This is coming from an operational perspective. Also, customers who have access to accurate knowledge management systems, they will have smoother transitions. It will also make them more likely to purchase your products or services and make optimum use of the same.

9. No need to hire external consultants

When you are hiring an external consultant, the company will need to make a bigger investment in usual cases. Although this is a shortcut, it is not the ideal way of consultations. It is definitely not recommended if your company is looking to cut back on costs and also doesn’t want to make a compromise on the quality of the products or services.

Based on what the issue is, knowledge management systems do help in changing your company’s or your team’s thought process. It will help you in producing the same effect that you might experience when hiring an external consultant or specialist. And the best part about it? You will not need to spend a large chunk of money on any expensive consulting services or external consultants.

10. Increased collaboration

With office politics and a negative workplace, it becomes difficult for all the employees to collaborate with each other. There is a lot of hoarding of knowledge and not enough sharing of it.

However, if there is a mandatory collaborative knowledge database or a content management system for the entire workplace, then it might help in increasing the collaboration between various teams. This might even enhance the communication and make it smoother. When people contribute their knowledge and data to one content management software then they tend to work as a team and not as individuals. This will help them solve most issues internally and without the need of an external party. It will help you save time and resources, while ensuring that everyone works in harmony.

11. Building a content database

Many times when someone calls us to ask for some important bank details or a phone number, we rush to check our notes for the information. Earlier, these notes used to be in a physical form and now they are digital. We are surrounded by information that we need on a daily basis. And we need a way to store the information more efficiently.

Especially when you are running a company, it becomes important to have all the data on hand. If the information you need is accessible in just a few clicks of your mouse, then it tends to save a lot of your time. You also come across as efficient and professional to outsiders.

If you want to save your time, money, and other resources, while working in the most efficient manner with an increased productivity and improved quality, then knowledge management systems are the answer. They will help you with all the benefits that we have mentioned above and will also make it easy for you to keep a track of everything.

You will have all details with you about every employee, every piece of machinery, all the products or services that you offer to the customers and who is doing what. If what they say is true about knowledge being power then having a knowledge management software system is one of the best things you can do for your company.


1. What are some examples of knowledge management systems in organizations?

Answer: For examples of KMS in organizations, you may refer to our blog: Examples of knowledge management systems. We have mentioned several examples in it that will help you understand this better.

2. What is the process of creating a knowledge management system in an organization?

Knowledge Management System Process

Answer: The process of knowledge management is pretty simple for any organization. It follows six simple steps:

  • Data collection
  • Organization
  • Analysis
  • Checking accuracy
  • Knowledge sharing


At The Cloud Tutorial, we love to share our expertise and experience in the field of knowledge management and KM systems. If you are interested in knowing more about us, you can get in touch with us by contacting us at any time. Feel free to suggest topics that you wish to know more about or drop reviews for this blog.

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