Note: This article was last updated on November 7, 2025, to ensure all information is up-to-date.
Every day, businesses generate massive volumes of data—from emails and chat threads to analytics dashboards and customer interactions. Without a system to manage this collective knowledge, valuable information disappears into silos.
That’s where a knowledge management system (KMS) comes in.
Key Takeaways
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The purpose of a knowledge management system is to capture, store, and share valuable knowledge across the entire organization.
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Effective systems improve productivity, decision-making, and customer experience by giving users access to the right information at the right time.
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A knowledge management culture is as important as the technology itself—teams must value collaboration and continuous learning.
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Tacit, explicit, and implicit knowledge all contribute to organizational success when properly collected and shared.
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Knowledge management systems can support employees, customers, and partners alike through self-service, training, and innovation.
A knowledge management system helps organizations capture, organize, and share knowledge efficiently so employees and customers alike can find accurate, relevant information when they need it most.
The rise of remote work, digital transformation, and increasingly complex customer interactions has made effective knowledge management essential. According to a survey by APQC, 56% of organizations report their KM maturity is just starting or developing. Meanwhile, the remaining 44% are already standardizing, optimizing, and innovating their KMS systems.
What Is a Knowledge Management System?
A knowledge management system is a digital platform designed to centralize an organization’s information and make it accessible to employees, customers, and partners. It functions as a centralized repository of documents, FAQs, insights, and training materials that enable people to work smarter.
At its core, the purpose of a knowledge management system is to:
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Capture and preserve organizational knowledge
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Facilitate knowledge sharing across teams and departments
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Provide quick access to relevant information
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Improve collaboration and learning
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Enhance decision-making and innovation
This system can take many forms—such as an internal intranet, customer portal, shared knowledge base, or AI-powered self-service tool. Regardless of its design, its goal is the same: to connect people with knowledge.
Why Knowledge Management Matters
Knowledge is one of an organization’s most valuable assets. When it’s not properly managed, teams duplicate work, miss opportunities, and lose insights that could drive innovation.
"Knowledge management will never work until corporations realize it’s not about how you capture knowledge but how you create and leverage it." — Etienne Wenger, educational theorist and practitioner
Effective knowledge management ensures that collective expertise is available to everyone who needs it. It transforms disjointed data into a structured resource that supports daily operations and long-term growth.
But technology alone cannot solve knowledge gaps. The most successful organizations foster a knowledge-sharing culture, where documenting and exchanging information is part of daily routines. When knowledge management becomes part of the company’s DNA, collaboration improves, and employees are empowered to solve problems independently.
A strong culture, supported by the right system, helps teams:
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Retain institutional memory when employees leave
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Encourage transparency and shared accountability
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Reduce reliance on single subject matter experts
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Build collective knowledge that fuels innovation
3 Types of Knowledge: Tacit, Explicit, and Implicit
To understand the purpose of a knowledge management system, it helps to distinguish between the types of knowledge it captures:
| Type of Knowledge |
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| 1. Tacit | Personal experience, intuition, or know-how developed over time | A senior engineer’s troubleshooting instincts | Mentorship, collaboration, or AI-assisted transcription of discussions | |||
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Documented or recorded information | Manuals, reports, FAQs, policy documents | Intranets, shared drives, or knowledge bases | |||
| 3. Implicit | Lessons learned from applying knowledge in real situations |
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Analytics dashboards, retrospectives, or performance reviews |
A well-designed knowledge management system allows all three types to coexist. For example, a customer support team might document explicit troubleshooting steps, while senior agents contribute tacit insights that improve response quality. Over time, this forms a cycle of continuous learning.
Examples of Knowledge Management Systems
Knowledge management systems appear in many familiar forms. Most users interact with them every day, often without realizing it.
Here are a few examples you may be familiar with:
1. Forums, Search Engines, and Databases
Search engines like Google and internal company databases are large-scale examples of knowledge management in action. They allow users to locate relevant information quickly through search and categorization. Similarly, company or community forums encourage collaboration by letting users ask questions, share answers, and build collective intelligence.
2. Frequently Asked Questions (FAQs)
An FAQ page is a simple but powerful example of a knowledge base in action. It provides consistent answers to recurring customer questions, improving satisfaction while reducing support workload. In business contexts, internal FAQs help employees find policy or procedural information instantly.
3. Video Tutorials, Articles, and Guides
From YouTube how-to videos to written step-by-step instructions, these resources represent structured knowledge sharing. Within an organization, such materials can become part of a self-service portal or learning hub—ensuring employees and customers can solve problems independently.
4. Training and Education Programs
Many organizations extend their knowledge systems to include employee training, online courses, or professional development modules. This not only enhances employee capabilities but also strengthens knowledge retention.
5. Webinars and Virtual Events
Live and recorded webinars have become an effective form of knowledge transfer. They allow subject matter experts to share tacit knowledge with large audiences—creating reusable assets that support both internal training and customer education.
How a Knowledge Management System Benefits Your Business
A knowledge management system supports three core audiences: your business, your employees, and your customers.
| Audience |
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| For Your Business | A knowledge management system acts as the backbone of your organization’s digital infrastructure, connecting departments, standardizing processes, and ensuring everyone works from the same information. |
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| For Your Customers | A customer-facing knowledge base improves self-service and transparency, offering fast, reliable access to relevant information anytime. |
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According to Splunk, 55% of enterprise data goes unused—a sign of how difficult it can be to find valuable insights in disorganized systems. By giving customers easy access to the right information, businesses not only enhance service but also free support teams to focus on higher-value interactions.
Broader Organizational Benefits
Beyond immediate gains in efficiency, a knowledge management system creates long-term strategic advantages. Some of the most impactful include:
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Improved onboarding: New employees ramp up faster with access to a central knowledge base.
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Cross-department collaboration: Teams can share best practices, policies, and project insights across silos.
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Increased productivity: Less time spent searching for information means more time spent creating value.
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Better product and service innovation: Historical data and feedback loops inform product improvements.
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Faster decision-making: Managers can rely on accurate, up-to-date insights rather than anecdotal evidence.
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Knowledge retention: Key expertise remains accessible even when employees move on.
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Operational efficiency: Streamlined processes and shared data reduce errors and duplication.
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Market agility: Real-time access to analytics helps organizations spot trends and respond quickly.
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Enhanced organizational resilience: Knowledge continuity supports business continuity during transitions or crises.
Together, these advantages demonstrate the primary purpose of a knowledge management system: turning scattered information into a structured, strategic asset.
Building the Right Knowledge Management Culture
Implementing the right technology is only half the equation. A knowledge management system succeeds when employees actively contribute and use it.
To encourage adoption:
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Recognize and reward knowledge-sharing behaviors.
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Provide training on how to use the system effectively.
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Integrate knowledge management goals into performance metrics.
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Maintain transparency—show employees how shared knowledge drives success.
Leadership plays a vital role in setting expectations. When executives model knowledge-sharing behaviors, teams follow suit.
As educator and author Peter F. Drucker famously observed, “Knowledge has to be improved, challenged, and increased constantly, or it vanishes.” A successful system ensures that institutional knowledge remains dynamic—not static.
How To Choose The Right Knowledge Management System
Selecting the right knowledge management system depends on your organization’s goals and existing infrastructure. Consider these essential features:
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Centralized repository: A single source of truth for documents, guides, and training materials.
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Powerful search function: Helps users locate relevant information quickly.
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Collaboration tools: Enable commenting, editing, and co-authoring.
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Access controls: Protect sensitive information while allowing transparency.
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Integration with other systems: Connect CRM, CMS, and analytics tools for seamless knowledge flow.
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Analytics and reporting: Provide insights into content use, search queries, and engagement.
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AI and automation: Suggest content, predict information needs, and improve accuracy over time.
When evaluating platforms, organizations should also consider scalability, user experience, and security. A well-designed system will evolve alongside your business and technology stack.
The Future of Knowledge Management
As artificial intelligence and automation advance, knowledge management systems are becoming smarter. Modern platforms can analyze usage patterns, recommend relevant content, and even capture tacit knowledge through conversational AI.
Integration with digital experience platforms (DXPs) like Liferay enables organizations to connect content, analytics, and collaboration into one ecosystem. This unification ensures that both employees and customers benefit from consistent, contextually relevant information.
Looking ahead, organizations that treat knowledge as a living, evolving asset—not a static archive—will be best positioned to innovate and grow.
Knowledge Management FAQs
What is a knowledge management system?
A digital tool that captures, stores, and shares valuable organizational knowledge—helping users access accurate, relevant information when needed.
What are examples of knowledge management systems?
Search engines, company databases, community forums, FAQs, video tutorials, online courses, and webinars.
Who benefits from knowledge management systems?
Employees, customers, and business partners all gain from easier access to collective knowledge.
What is the primary purpose of a knowledge management system?
To improve organizational efficiency, innovation, and collaboration by connecting people with the right knowledge.
Ready To Modernize Your Knowledge Management?
A well-implemented knowledge management system can boost productivity by up to 25% and increase sales by as much as 20%. Whether you’re streamlining employee training or improving customer self-service, the benefits compound over time.
Explore how Liferay’s digital experience platform helps organizations modernize intranets, create unified knowledge bases, and build secure, scalable systems for collaboration and growth.
Download our whitepaper and discover how to modernize your knowledge management strategy.
