Knowledge Management Growth Opportunities

Information TechnologyKnowledge Management Growth Opportunities

Improving Knowledge Management as a Top Business Priority to Unlock Future Growth Potential

RELEASE DATE
27-Jun-2024
REGION
Global
Deliverable Type
Market Research
Research Code: KAA4-01-00-00-00
SKU: IT_2024_830
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SKU
IT_2024_830

Knowledge Management Growth Opportunities
Published on: 27-Jun-2024 | SKU: IT_2024_830

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Knowledge management (KM) is a mature technology applicable to all businesses and used in every type of enterprise and industry vertical. Though KM initially meant content management, it now enables the creation, publication, and management of data and information from an infinite number of sources, such as documents, video, databases, call logs, speech and text analytics, customer and partner communities, website activity, search engines, interactive voice response (IVR) systems, and people.

KM is the key to managing contact center transformation initiatives, such as implementing new operating models, supporting remote or hybrid working, and empowering customers with self-service tools. For instance, a contact center requires AI-based KM that leverages ML, NLP, and semantic search that identifies keywords and provides contact center agents with relevant information at the right time and helps them handle customer concerns effectively. A KM backed by AI also empowers customers to leverage self-service and ensures greater customer satisfaction.

Frost & Sullivan examines the importance of a solid KM strategy and the benefits it can bring to an organization looking to elevate customer care and employee experiences. The study analyzes the greatest areas of KM impact, recent developments, top trends, growth drivers and restraints, and growth opportunities for market participants. The analysis also addresses challenges and benefits related to making a KM investment successful and recommends KM strategies for companies. Solution provider profiles and use cases for each of the core areas of KM are included.

Author: Ankita Singh

The Impact of the Top 3 Strategic Imperatives on the Knowledge Management Industry

Disruptive Technologies

Why

  • Disruption, innovation, and consumer upheaval have propelled the industry to embrace digital transformation and have accelerated the need for advanced customer experience (CX) solutions.
  • The ever-growing number of customer interaction channels and connected devices has increased data creation (including structured and unstructured CX data) and is driving the need for analytics.
  • Artificial intelligence (AI) tools and technologies, including AI, machine learning (ML), and natural language understanding (NLU), are needed for journey-specific contextual content to improve CX and employee experience (EX).

Frost Perspective

  • The aforementioned technologies are critical to drive business efficiencies over the next two to five years. About 65% of businesses consider AI technologies a “crucial” or “very important” priority and are likely to invest in them over the next two years to improve EX and CX.

  • Businesses are still in the process of digital transformation. About 62% of businesses consider moving CX applications to the cloud as a crucial or very important CX priority for the next two years.

Transformative Megatrends

Why

  • End customers want to be empowered; they demand quicker resolution of queries and transparency from the brands with which they engage. Hence, they prefer self-service over live assistance from agents.
  • With the wider adoption of work-from-home policies, the hybrid workforce is rising.
  • Alternative workers, gig workers, and the independent workforce are increasing. Outsourcing enhances operational efficiency and lowers business costs.

Frost Perspective

  • 23% of businesses recognize that stakeholder and organizational silos are restricting their capability to meet or exceed their CX objectives. Businesses will leverage knowledge management (KM) solutions to support their hybrid and alternative workers to enhance CX. Therefore, the usage of KM is poised to increase over the next five years.

  • 66% of businesses will consider self-service technologies as a crucial or very important CX priority for the next two years to empower customers.

Internal Challenges

Why

  • Although knowledge management (KM) databases are found across organizations, most lack operating models and cross-organizational working groups.
  • Companies are still struggling with documented knowledge management. Additionally, businesses still depend on implicit knowledge; tacit knowledge that is more experiential is not yet recorded and managed effectively.
  • Businesses are struggling with managing the cost of onboarding and rehires that comes with the cost of losing an experienced employee.

Frost Perspective

  • Facilitating easy knowledge transfer among different types of workers will become a priority for businesses over the next few years. Vendors offering a cloud-based solution and a mobile-first design with KM tools that are easy and seamless knowledge transfer in real time will be preferred.

  • KM is a core component of the burgeoning conversational AI industry. The rising adoption of intelligent VAs and bots will significantly increase over the next five years.

 

Knowledge Management: Definition and Beginning of KM

  • Tom Davenport defined Knowledge Management in 1994 as “the process of capturing, distributing, and effectively using knowledge.” (KMWorld). The concept of KM started within management consulting in the late 1980s, and it spread like wildfire with the introduction and the growth of the Internet.
  • Since then, it has extended its application across organizations. Initially, KM was designed to gather and share knowledge within an organization, including documents, databases, and other sources. One of the most critical early components of KM was content management. Data and information were made available to an organization’s stakeholders through portals or dashboards, spurning the offshoot of enterprise content management (ECM) systems.
  • The next three decades of KM development increased the complexity of the concept. KM systems and applications are now found in every type of enterprise and industry vertical. KM solutions enable data and information of all types to be created, published, and managed from an infinite number of sources, including documents, video, databases, call logs, speech and text analytics, customer and partner communities, website activity, search engines, interactive voice response (IVR) systems, and people historically and in real time.

 

Growth Drivers

  • Structured KM that empowers agents, regardless of their work location, provides faster and more accurate customer service.
  • The growing number of customer interaction channels will continue to offer a vast amount of customer data. AI-backed KM solution adoption will grow as businesses will focus on consolidating the data and insights into knowledge bases accessible to all customer-facing teams.
  • Businesses will strive to lower the cost of customer service by reducing the number of customer calls. They will invest in improving digital self-service capabilities that boost first-contact issue resolution with specialized knowledge assets.
  • KM solutions help companies manage and improve the vast knowledge stores accrued over time, reduce obsolete information, and leverage data across all areas—from documents, pictures, and video to knowledge from employees and the voice of the customer (VoC).
  • Awareness, in addition to explicit, tacit, and implicit knowledge, must be leveraged to offer better CX.

 

Growth Restraints

  • The slow adoption of KM solutions is driven by the lack of awareness of KM benefits and the impact KM can have on operational efficiencies, EX, and CX.
  • Security concerns around using AI-powered KM tools restrict KM tool investment and adoption.
  • A lack of best practices in the design (complicated mobile-first designs) and the deployment of KM-rich, AI-infused self-service options inhibits growth.
  • Competing investments that are more clearly defined, including moving to the cloud and workforce engagement management (WEM), are prioritized over KM, even though the cloud facilitates easier use of KM, and KM fuels enhanced WEM.
  • Low adoption of VAs that assist agents in the maturing market will restrain growth until greater market awareness, best practices, and use cases increase awareness.

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Knowledge Management Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Relevant Definitions for This Study

Knowledge Management: Definition and Beginning of KM

Evolution of Knowledge Management

Knowledge Categories Explained

Knowledge Management in Contact Centers

Recent Advancements in KM, as Pertaining to Customer Contact, Include the Following

Knowledge Management Uses in Contact Centers

Business Benefits of Knowledge Management: Workforce

Top 10 Knowledge Management Industry Trends

Top 10 Knowledge Management Industry Trends (continued)

Top 10 Knowledge Management Industry Trends (continued)

Growth Drivers

Growth Restraints

Growth Opportunity 1: Cross-organizational Knowledge Management

Growth Opportunity 1: Cross-organizational Knowledge Management (continued)

Growth Opportunity 2: Contact Center Agent Enablement

Growth Opportunity 2: Contact Center Agent Enablement (continued)

Growth Opportunity 3: Supercharging Customer-facing Teams

Growth Opportunity 3: Supercharging Customer-facing Teams (continued)

List of Exhibits

Legal Disclaimer

List of Figures
  • Knowledge Management: Growth Drivers, Global, 2024–2028
  • Knowledge Management: Growth Restraints, Global, 2024–2028
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A tailored session with you where we identify the:
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  • Growth Opportunities
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Impacting your company's future growth potential.

Knowledge management (KM) is a mature technology applicable to all businesses and used in every type of enterprise and industry vertical. Though KM initially meant content management, it now enables the creation, publication, and management of data and information from an infinite number of sources, such as documents, video, databases, call logs, speech and text analytics, customer and partner communities, website activity, search engines, interactive voice response (IVR) systems, and people. KM is the key to managing contact center transformation initiatives, such as implementing new operating models, supporting remote or hybrid working, and empowering customers with self-service tools. For instance, a contact center requires AI-based KM that leverages ML, NLP, and semantic search that identifies keywords and provides contact center agents with relevant information at the right time and helps them handle customer concerns effectively. A KM backed by AI also empowers customers to leverage self-service and ensures greater customer satisfaction. Frost & Sullivan examines the importance of a solid KM strategy and the benefits it can bring to an organization looking to elevate customer care and employee experiences. The study analyzes the greatest areas of KM impact, recent developments, top trends, growth drivers and restraints, and growth opportunities for market participants. The analysis also addresses challenges and benefits related to making a KM investment successful and recommends KM strategies for companies. Solution provider profiles and use cases for each of the core areas of KM are included. Author: Ankita Singh
More Information
Deliverable Type Market Research
Author Ankita Singh
Industries Information Technology
No Index No
Is Prebook No
Keyword 1 Knowledge Management
Keyword 2 KM technology trends
Keyword 3 Strategic knowledge management
List of Charts and Figures Knowledge Management: Growth Drivers, Global, 2024–2028~ Knowledge Management: Growth Restraints, Global, 2024–2028~
Podcast No
Predecessor K560-01-00-00-00
WIP Number KAA4-01-00-00-00