One of the ways in which KM adds value is through helping people do work faster and better. Here is a story of howAccenture estimated that value.
They estimated these savings through a survey, which asked the following question
"Please estimate the amount of your time that you saved during the last two weeks as a result of this knowledge.The results from this survey were used to calculate average time savings, and thus average cost savings. They found that for annual KX costs to the sample population of $170,000 they were delivering savings of $2,400,000.
"During the last 2 weeks, this information saved me AT LEAST:"
"During the last 2 weeks, this information saved me AT MOST:"
This equates to a 2500 percent Return on Investment
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2 comments:
Nick, while the numbers are impressive, what do they mean? Along with the faster access to the right information, have they seen corresponding improvements in customer (client) service? retention? Can they attribute the benefits of KX to some of the business challenges they had/have?
Hi Jack
These metrics measure efficiency rather than effectiveness. Maybe that's what they wanted to impact? Or maybe that was easier to measure.
I can't comment whether they have also seen effectiveness benefits, as I dont think they have ever done that study (or if they have, I haven't seen it published).
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