What is a knowledge management system?

A cover illustrates the title of the article "what is a knowledge management system" with a person thinking. Whereas, a "thinking head" is surrounded with concepts in which knowledge management helps like: problem-solving, research, brainstorming, evaluation, etc.

For companies, the Knowledge Management System (KMS) means the difference between struggling to keep up with the rapid pace of innovation and seamlessly adapting to the changes. With the sheer amount of data and information generated every day, managing it effectively has become indispensable. Whether it’s decoding long documents, retrieving essential details from thousands of files, sharing expertise across different departments, or automating customer support, a KMS can perform these vital tasks effortlessly. So, what is a knowledge management system?

Definition of a knowledge management system

A KMS is essentially a type of information system which collects, organizes, stores, and retrieves the knowledge of an organization to enhance its performance. Knowledge, in this context, can refer to databases, documents, procedures, and expertise that exist within the organization. A KMS not just captures, distributes, and effectively uses information but also helps in creating new knowledge, i.e. in creating value from a company’s intangible assets.

Knowledge management systems resolve many different tasks, some of which are depicted in the illustration below.

Tasks that a knowledge management system resolves: decision making, strategic planning, knowledge sharing, customer support, partnerships, and alliances formation

The KMS allows for sharing of the knowledge to enable the employees to access and use valuable insights previously known only to certain individuals or groups within the organization.

It can as well improve communication with customers, as a KMS helps to avoid answering the same questions again and again. Instead, the information can be presented in such a way that customers can find it on their own without contacting a support team.

But before we discuss the specifics of a KMS, it is important to understand the different types of knowledge, specifically tacit, implicit, and explicit knowledge, that form the core of any KMS.

Types of knowledge

Knowledge can be categorized based on how easy or hard it is to share that information. This ranges from knowledge that is very hard to capture, all the way to knowledge that can be easily passed on. You might ask, how does this relate to knowledge management systems?

Well, to provide answers and put information into a form that can be easily searched, first, you need to figure out where this information will come from. It’s important not to overlook any valuable pieces of knowledge that should be shared. So, let’s talk about the three types of knowledge:

Tacit knowledge is very individual and hard to formalize, making it difficult to communicate or share with others. It involves personal insights, intuitions, experiences, and hunches. In the context of a KMS, tacit knowledge can be shared through direct and indirect interactions among employees. Tools like chat forums, social networks, and video conference apps can help facilitate this sharing of tacit knowledge.

Defining tacit knowledge to better understand how a knowledge management system deals with it

Implicit knowledge, on the other hand, is knowledge that can be articulated but has not yet been documented. Once captured, this knowledge can be easily shared among different members of an organization. Methods of capturing implicit knowledge include brainstorming sessions, interviews, and surveys.

Defining implicit to better understand how a knowledge management system deals with it

Explicit knowledge is one that has been documented and can be easily transmitted to others. Examples include manuals, procedures, and data reports. This type of knowledge is typically structured and organized, making it easy to store in a KMS and retrieve when needed.

Defining explicit knowledge to better understand how a knowledge management system deals with it

In a successful KMS, these three types of knowledge intersect and interact to create a well-rounded and thorough system of information sharing. A KMS should be able to convert tacit and implicit knowledge into explicit knowledge, making it accessible and usable for all members of an organization or customers. This is actually what the essence of the knowledge management system is. By understanding the three types of knowledge, organizations can properly use a KMS to their advantage and ensure that all valuable insights are captured and made useful.

Explaining the role knowledge management systems plays in transforming tacit and implicit knowledge into explicit

Thus, a knowledge management system works as a bridge, connecting crucial information with the people who need it, and fostering an environment of learning. Transforming implicit and tacit knowledge into tangible formats such as texts and presentations, lets companies share information conveniently. However, there are other positive outcomes for the business. Let’s name a few more.

What is the importance of a knowledge management system?

Businesses greatly rely on the efficient use of information to stay competitive. A well-implemented KMS can be a game-changer for modern businesses as it offers numerous benefits.

Filtering and accessing relevant knowledge. A company’s customer service team can use a KMS to quickly access customer information, prior interactions, and common problem resolutions. This enables them to provide efficient, personalized support to customers, enhancing their overall experience.

Competitive advantage. For example, an e-commerce business can use a KMS to collect and analyze market trends, customer preferences, and competitor strategies. This knowledge allows them to tailor their product offerings and marketing campaigns, staying ahead of the competition and driving higher sales.

Preventing loss of institutional knowledge. When an experienced employee retires or leaves the organization, their valuable knowledge and expertise can be lost. By documenting their insights, best practices, and lessons learned in a KMS, companies can retain and transfer that knowledge to new employees, ensuring continuity and minimizing the impact of staff turnover.

Enhancing customer service and engagement. A software company can implement a KMS that includes a comprehensive FAQ section, troubleshooting guides, and user manuals. This empowers customers to find solutions to common issues on their own, reducing support requests and improving overall customer satisfaction.

Therefore, we see how integrating a knowledge management system offers tangible benefits. KMS works in a way that helps improve customer service, stops valuable institutional knowledge from getting lost, provides an edge over the competition, and sifts through information to find what’s important. In the next section, we’ll discuss the specific functions and features of a KMS that enable these benefits.

The functions and features of a knowledge management system

Knowledge management systems come packed with a range of functions and features designed to systematically manage an organization’s knowledge. Understanding these features and their functions can help you utilize a KMS optimally.

It captures, organizes, and stores knowledge

Collecting information from various sources, validating its accuracy, and organizing it systematically is a key function of KMS.

It facilitates knowledge sharing and collaboration

With features like discussion forums, blogs, and wikis, KMS fosters a culture of learning and innovation among employees.

It improves customer understanding

By consolidating customer data and documenting customer interaction insights, organizations can develop a deeper understanding of their customers, leading to improved customer service and product development.

It enables swift knowledge retrieval

With its robust search capabilities, a KMS ensures users can easily locate the knowledge they require, regardless of the volume of data. Such a feature enables users to filter and retrieve relevant information efficiently.

Now, having known the functions and advantages of the KMS, let’s see what the process of the knowledge management system is.

The process of implementing a knowledge management system

The successful adoption of a knowledge management system requires careful planning and the right resources. Here are some steps to consider when setting up a KMS:

Step 1. Identify the knowledge needs

The first step involves identifying what knowledge your organization needs to capture, process, store, and share effectively.

Step 2. Define clear goals

Having clear goals for your KMS will guide its design and use. Consider your business’s unique needs and challenges and how a KMS can address them.

Step 3. Choose the right tools

Many tools are available for managing knowledge, including databases, content management systems, collaborative software, and, lately, AI chatbots. Choose tools that align with your specific needs and are user-friendly.

Step 4. Ensure user training and support

Make sure all employees are trained to use the system and understand its value. Regular support and guidance are crucial to the seamless adoption and use of the KMS.

Step 5. Provide regular maintenance and updating

To ensure your KMS remains current and effective, regular updates and maintenance are necessary.

When choosing a KMS, consider the system’s scalability, ease of use, and customization capabilities. Assess how well the system aligns with your business’s current workflow and future growth plans.

Exploring real-life applications of effective knowledge management systems

Knowledge management systems are useful in many different fields, from space travel to car making. Companies use these systems to help make their knowledge operations easier, increase teamwork, get more done, save money, and make customers happier. To provide a broader understanding, the following are some examples of real-world applications and successes of knowledge management systems.

The main page of Microsoft Learn knowledge management system as an example of KMS successful implementations
Microsoft Learn knowledge management system

Microsoft utilizes a KMS known as Microsoft Learn to provide a centralized repository for technical documentation, tutorials, and community-driven knowledge sharing. This platform allows developers, users, and partners to access up-to-date information and collaborate on projects, enhancing the overall Microsoft ecosystem and supporting the success of their products and services.


NASA’s expertise in space cannot be disputed. One of the important enablers of its successful endeavors is an effective KMS. This system ensures the efficient exchange of tacit knowledge across its wide-spread teams, encouraging a heightened level of collaboration and fostering innovation. This comes to bear in the successful planning and execution of their space explorations and scientific advancements.


Another player in the automobile industry, Toyota has been strategic in its use of a KMS. Its system, often referred to as the Toyota Production System, leans on the power of explicit and tacit knowledge to improve operations. It encourages employees to share their insights and experiences, thereby facilitating continuous improvement and innovation.

Procter & Gamble

P&G, a multinational consumer goods company, implemented a KMS called Connect+Develop. This system allows P&G to collaborate with external partners, such as scientists and inventors, to access and leverage external knowledge for innovation. By tapping into external expertise, P&G has been able to develop new products and technologies more efficiently.

These examples highlight the diverse range of industries and organizations that have successfully leveraged knowledge management systems. The companies mentioned above have proved the effectiveness of KMSs by running them for years.

However, what modern knowledge management systems will we use in the near future? Just like any other technology, knowledge management systems also evolve or become obsolete if they do not remain relevant. The coming sections will discuss the trends in KMS development.

What are knowledge management system trends for 2023–2024?

AI integrations to knowledge management systems

Artificial intelligence (AI) has been revolutionizing various industries, and knowledge management systems are no exception. We can expect to see increased AI integrations in KMS, bringing forth even more advanced functionality and efficiency.

One possible use of AI in KMS is intelligent search algorithms. Traditional keyword-based searches might not always yield the most accurate or relevant results. AI empowers KMS to understand context and user preferences, enabling it to provide more accurate search results. For example, an employee at Netflix searching for specific vacation policies would receive personalized results that are most relevant to their needs, such as vacation forms, rather than general vacation-related documents.

Another area where AI can enhance KMS is through automated knowledge capture and categorization. AI algorithms can analyze and categorize large volumes of information, making it easier for users to search and retrieve relevant knowledge. This saves time and effort, as employees no longer need to manually tag or categorize documents.

This as well can be applied to improving communication with customers. AI-powered chatbots allow companies to scale their customer service operations while providing personalized service. They can initiate and progress conversations with customers, answer common inquiries, and collect valuable customer data.

Stats demonstrate that customer support tasks are in third place in terms of using AI chatbots to perform tasks. This data suggests that AI implementation in knowledge management systems will play a significant role in the near future.
Customer support is in the third place among the tasks accomplished by U.S. employees using an AI chatbot as of February 2023, by Statista

Integrating a KMS with a chatbot can further improve customer experience, which can be even further enhanced by automated document retrieval capabilities. The KMS-generated documents can be catered to the needs of each customer, giving them the information they need faster.

More trends that will shape the future of knowledge management systems

In addition to AI integrations, there are other notable trends that will shape the future of KMSs.

Mobile phones

One such trend is the increasing importance of mobile accessibility. As remote work continues to grow, employees are relying more on mobile devices for their work. Therefore, KMS providers are focusing on optimizing their platforms for mobile access, ensuring that employees can access and contribute to knowledge regardless of their device or location.

Adaptive interfaces

Furthermore, personalized and adaptive interfaces are also gaining traction. KMS platforms are becoming more intuitive, tailored to individual users’ needs and preferences. These interfaces can adapt to users’ roles, providing relevant information and features based on their specific responsibilities and requirements. This customization enhances user experience and makes knowledge management systems more user-friendly.


Another trend is the integration of analytics and reporting capabilities into KMS. Organizations want to track and measure the impact of their knowledge management efforts. By incorporating analytics tools into a KMS, businesses can gain insights into knowledge usage, engagement, and effectiveness. This data can help identify knowledge gaps, optimize workflows, and drive continuous improvement.

As we look ahead to 2024, it is clear that knowledge management systems will continue evolving to meet the evolving needs of remote work and digital workplaces. AI integrations, mobile accessibility, personalized interfaces, and analytics capabilities will play a significant role in shaping the future of these systems, empowering organizations to better capture, share, and utilize knowledge for increased productivity and success.

Summing up

So, answering the question of what a knowledge management system is, it is a critical tool for organizations to effectively manage and use their knowledge. It acts as a hub, connecting employees to valuable insights, enhancing communication, and empowering decision-making.

In the era of remote work, a KMS becomes the indispensable bridge that centralizes knowledge, gets rid of communication barriers, encourages collaboration, and triumphs over challenges. But that’s not all — there’s an exhilarating roadmap ahead for KMS. Picture AI integrations, mobile accessibility, personalized interfaces, and mind-boggling analytics.

So, as the captivating world of technology continues to evolve, organizations that embrace the power of a KMS will undoubtedly conquer new frontiers.

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