Disadvantages Of Knowledge Management System

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A knowledge Management System refers to the "set of business processes developed in an organization to create, store, transfer and apply knowledge". There are three types of Knowledge Management system. They are: 1) An Enterprise-Wide Knowledge Management System: This type of Knowledge Management System acquires stores and disseminates digital content and knowledge. Enterprise-Wide KM systems deals with three different types of knowledge. These are: -Structured Knowledge; which consists of formal documents such as reports and presentations. -Semi structured Knowledge; which are unstructured documents not found on formal documents.Examples are electronic mail and bulletin boards. -Network (tacit) knowledge; which is not documented…show more content…
As stated in the previous point, KM systems allow firms to create innovative products and services, and thus, this will allow the business to gain an edge over competitors. In addition, a KM system will allow businesses to determine the most efficient, least costly, and quickest method of making a product or providing a service. A KM system plays a crucial role in consulting firms, in terms of giving the firm a competitive advantage. For example, knowledge network systems can be used by employees to obtain solutions to different problems developed by experts in an organization, and will therefore allow for quicker consulting services. Despite the advantages of a KM system, there are challenges associated with the implementation of such a system. 1) A KM system is very costly to implement. In this case, the CEO would like to invest US $1 million in a KM system. 2) Successful implementation of a KM system relies heavily on the culture of the organization. Some managers may not support the implementation of a KM system, perhaps due to the fear of change, or due to security concerns of managers. The success of a KM system will also rely on the willingness of employees to share their
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