With rapid development of economic globalization and information technology, businesses are facing increasing competition and challenges. How to understand dynamics of market, meet customer needs, and improve product quality and efficiency have become urgent problems to be solved in development of enterprises. As a new method of management, knowledge management is gradually attracting attention of enterprises. This article will discuss importance of knowledge management in enterprises from following aspects.

1. What is knowledge management

Knowledge Management (KM) refers to effective management and use of internal and external resources in an enterprise through a range of processes and practices such as identifying, creating, adopting, sharing and protecting knowledge assets in day-to-day operations. and experience. Knowledge includes experience, skills and knowledge of organization's people, industry and market information and trends, and needs and feedback of customers and partners. The purpose of knowledge management is to increase innovative capacity and competitiveness of an enterprise through effective use and renewal of enterprise's knowledge assets, and then ensure sustainable development.

Second, why do businesses need knowledge management. 1. Increasing ability to innovate.

Knowledge management can help businesses improve their innovation capabilities. In a rapidly changing market environment, only continuous innovation can win market share and customer reputation. Innovation comes from knowledge, and it is through effective management and use of internal and external knowledge and experience that an enterprise can increase its innovation potential.

2. Increasing production efficiency

Knowledge management can also help businesses improve production efficiency. By effectively sharing and leveraging knowledge, duplication of efforts can be avoided, errors reduced, and development cycles shortened, thereby increasing productivity and reducing costs.

3. Increase employee cohesion

Knowledge management can also increase employee cohesion. Through exchange and dissemination of knowledge, a sense of teamwork can be established, cooperation and communication between departments can be strengthened, and a common cultural atmosphere can be formed, thereby strengthening employee cohesion.

4. Improve customer satisfaction

Knowledge management can also improve customer satisfaction. By managing and leveraging customer feedback and needs, combined with in-house knowledge and experience, products and services can be continuously improved to better meet customer needs and expectations and increase customer satisfaction and loyalty.

Third, practice of knowledge management.

In order to realize goal of knowledge management, enterprises need to perform a number of practical actions, including following aspects:

1. Create a knowledge management platform.

The knowledge management platform is foundation upon which businesses can implement knowledge management. Enterprises need to implement appropriate software or systems to create their own knowledge management platform, including a number of functions such as defining, creating, storing, sharing, distributing and protecting knowledge.

2. Create a knowledge management culture

Knowledge management is not only a tool or a technology, but also a culture and a concept. Businesses must establish knowledge management awareness and translate it into concrete actions. Everyone, from senior management to employees, must be aware of and pay attention to importance of knowledge management.

3. Create a knowledge sharing mechanism

Knowledge sharing is foundation of knowledge management, but it's also hardest part. Businesses need to establish a complete set of knowledge sharing mechanisms, including encouraging employees to share knowledge, building knowledge bases, building expert databases, and holding internal showrooms and discussions.

4. Establish a knowledge management evaluation mechanism

The effect of knowledge management implementation needs regular evaluation and improvement. EnterprisesA complete set of knowledge management evaluation mechanisms needs to be established, including evaluation of value of knowledge assets, evaluation of effect of knowledge sharing, and evaluation of practical results of knowledge management.

4. Conclusion

As a new method of management, knowledge management is playing an increasingly important role in modern enterprises. Only through effective management and use of internal and external knowledge and experience of enterprise, it is possible to improve innovative ability and competitiveness of enterprise in order to achieve sustainable development. Enterprises need to raise awareness of knowledge management, and through a series of practices such as establishing a knowledge management platform, establishing a knowledge sharing mechanism, and developing a knowledge management culture, continuously improve their knowledge management capabilities and levels.