Organizations that can capture their knowledge, re-use and reflect on that knowledge, and then fold back in what they learn will have less rework and waste.
There will be greater resiliency and redundancy, and everyone will be able to take a vacation. The organization can recover faster from disasters. Energy and mental space can be spent on new, complex undertakings.
I think of knowledge as information plus people. Knowledge implies the involvement and engagement of human beings.
Knowledge management is capturing our knowledge, finding it again, and updating (or removing) the captured knowledge with what we learn over time.
A robust culture of learning and knowledge management requires careful use of technical tools and information structure, but will also only work with attention to the people who are participating in the learning and knowledge management. Behaviors, technology, and information structure are all critical aspects of successful knowledge management.