Tuesday 9 April 2013

Quantified success stories through KM - numbers 54 through 59

59th Expense
The recent ARK group report, "Measuring the ROI of Knowledge management", has some great content. As well as articles from me, from Stephanie (Knoco Canada) and Catherine (Knoco France), the article from Madanrohan Rao contains a number of quantified success stories (sourced from his book Leading with Knowledge) which have not already been listed in this blog.

These extra 6 examples are summarised by Madanrohan as follows

"Lockheed Martin saved $2.6 billion annually by early 1999 thanks to its LM 21 Best Practices initiative". 
"Ford reported that $34 million were saved in just one year by transferring ideas between vehicle operations plants" 
"Tata Steel reported significant savings in saleable steel costs in 2002 to the tune of Rs. 3.41 crore (about US$700,000) thanks to its KM initiatives" 
"EMC's KM practice helped improve worldwide sharing of solutions and shorten learning curves. More specifically, the company (who are a global leader in IT and business transformation) reported a 10 per cent reduction in training costs, 15 per cent call avoidance, and 37 per cent faster resolution of customer queries thanks to its Knowledgebase workflow repository" 
"i2 used knowledge-centric strategies to position new products to new clients in a shorter period of time. Their knowledge exchange tool for supply chain management solutions helped reduce implementation time from 3-4 months to 4-6 weeks". 
"At MITRE, tangible benefits of KM were realised in reduced operating costs, improved staff productivity, and cost avoidance. Over a three-year period, this included $16.6 million in labour and material costs". 


Unknown said...

Thanks Nick! a very encouraging post for people with roles in KM programs of organizations. It seems that quantifying the success of KM is easier in non-consulting firms!

Nick Milton said...

I don't know whether it is easier, or whether it is published more. For a consulting firm, you would need to look at how KM affects leverage, or win ratio, or the cost of bidding. I recall some anecdotal figures from Ernst and Young, but have no references. Perhaps another reader can point us to some quantified value from consulting firms?

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