Memory influences an individual's behavior by providing insight for solving problems and making decisions. Such a system could assist users in remembering and applying knowledge in order to create efficiencies and increases in productivity. Organizational Memory Organizational memory is a generic concept to used to describe saving, representing, and sharing corporate knowledge. It supports cooperation in a multiple task and multiple user environment. By their definition, organizational memory provides information that reduces transaction costs, contributes to effective and efficient decision making, and is a basis for power within organizations.
Organizational memory is both connected and retentive.
If memory exists but is unconnected, it does little to aid the organization. Likewise, if memory is easily lost, it cannot be considered very useful. Temporal information and poor retention would result in a system which is less robust and less likely to be relied upon. They indicate that organizational memory relies on knowledge that is spatially distributed throughout the processes, individuals, and artifacts of the organization and beyond its boundaries. One such change occurs when employees leave the organization.