In March 1872, a Naval academy was created at Kiel for training officers, followed by the creation of the Machine Engineer Corps in May and a Medical Corps in February 1873. A Torpedo Engineer Corps was created dealing with torpedoes and mines in July, 1879. In May, 1872, a ten year building program instituted to modernize the fleet called for 8 armoured frigates, 6 armoured corvettes, 20 light corvettes, 7 monitors, 2 floating batteries, 6 avisos, 18 gunboats and 28 torpedo boats.
SMS König Wilhelm was regarded as an excellent ship which maneuvered very well, but it lurched violently and the sails had only limited influence. In May of 1878, a German tank squadron consisting of the flagship SMS König Wilhelm, the battleship SMS Großer Kurfürst, SMS Prussia and the Aviso SMS Falke under the command of Rear-Admiral Carl Ferdinand Batsch was steaming through the English Channel to the Mediterranean for a maneuver. At the height of Folkestone, two sailing ships crossed their course. SMS König Wilhelm and SMS Großer Kurfürst had to dodge them and wanted to go back to their course. The watch officer on SMS König Wilhelm misunderstood his command and turned and rammed the SMS Großer Kurfürst with his battering ram so violently that it turned to port. The ship’s officers on SMS Großer Kurfürst also failed to maneuver correctly, and after the collision, water penetrated into SMS Großer Kurfürst so rapidly that it soon afterwards sank with its 269 men on board. 218 of men were rescued by German and English ships.
After the serious accident, SMS König Wilhelm was fundamentally rebuilt from 1878 to 1882 at the Imperial Shipyard Wilhelmshaven, where the prow was removed as well as the rig down to the lower masts. Following the removal of her entire rigging in Hamburg in 1897, she was reclassified as an armored cruiser, First Class, carrying a crew of 732. She was decommissioned in 1904, serving thereafter as a barracks hulk in Kiel and Naval Academy Mürwik. She was scrapped in 1921.