Running a successful business calls for proper management of financial and organizational data and statistics with quality information systems. The importance of knowledge sharing. From small businesses run by a single person to huge multi-national corporations, the importance of information technology in any business setting is evident. Innovation in business has the same impact that steam had on the industrial revolution. Why is it so important? Domain knowledge points to the comprehension and understanding of the inner workings, processes, procedures and other key aspects of an enterprise. With the power of knowledge, an employee is more agile and better able to deal with unforeseen circumstances. It’s tempting to focus on technical and hard skills when discussing business qualities, but soft skills are every bit as important as the things you learn about in business school. This overload of data people are dealing with increases the importance of knowledge sharing within an organization. When you understand the value of knowledge, the importance of knowledge sharing becomes a little clearer. Computer technology is used across the business world in every department and has become vital to business … Almost every company has experienced a drastically slowed workflow because of data problems related to reliability and accuracy. The course Knowledge Management on Udemy is a resource you have to try if you want to learn more about dealing with knowledge. Leveraging the Power of Culture While the U.S. has enjoyed decades of domestic economic prosperity, recent economic challenges remind us that our future economic success revolves around succeeding in the global economy. With knowledge, you can improve your abilities of thinking critically. Employees quit and retire, taking with them decades or maybe years of company knowledge, as per the survey results in the book “ Critical Knowledge Transfer,” knowledge-related costs of losing employees fall between $50-299k per employee.. Hard drives can get corrupt and stolen. Knowledge Helps You Solve Problems In life, you will constantly face problems every day, sometimes problems that you can’t possibly seem to overcome. For instance, professionals seeking domain knowledge in retail banking would need to understand the transactions concerned with retail banking web applications such as fund transfers and currency conversions. While businesses talk a lot about the importance of customer service, there’s a surprising amount of confusion about just how important it really is to business success. Importance of Knowledge Management. The first kind of knowledge you should seek to accumulate is knowledge that relates to your lifestyle and to what you do. Knowledge sharing is essential for a company to achieve success, since it can facilitate decision-making capabilities, build learning organizations (through a learning routine) and finally, stimulate cultural change and innovation. KMWorld explained in a post how simple communication of knowledge from one sales representative changed the direction of the sales for one pharmaceutical company. Here are just a few reasons it’s considered vital for a successful organization: 1. A mechanic for instance should make it their business to learn absolutely everything they can about vehicles and about mechanical engineering. Reasons Why Information Systems Are Important for Business Today. Business planning is not quarterly or annual, but often is anticipated for the next decade, or even decades. Drawing on the literature on knowledge and self-efficacy, we examine the effects of individuals' possession of and exposure to knowledge on the likelihood to engage in business start-up activity. Information technology drives innovation and innovation is the path to business success. In a business setting, knowledge management refers to managing knowledge within each company.