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Knowledge Management is how you can best utilize your enterprise knowledge to minimize cost, optimize and improve the processes and save time. In short, it saves you from re-inventing the wheel. The business is well equipped when it utilizes the immense knowledge within the enterprise to tackle competition at the same time bring in the new business. It is said that any information is good to have when you are going for sales. KM does help in this process.
We live in the age of exponential information, where departments are unaware of the resources available within the organization. Here the KM bridges the gap between the "haves" and "have not's"
http://blog.mbaco.com/importance-of-knowledge-management-in-organisation/