The Cost of Doing Nothing with Knowledge Management
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This document discusses the business case for knowledge and information management. It notes that 90% of data was generated in the last two years, and over 80% of business leaders agree their systems don't integrate well. Effective knowledge management involves capturing, managing, sharing, and finding the right information at the right time. Case studies show how knowledge management initiatives improved customer satisfaction, increased first call resolutions, and saved organizations millions of dollars.
The Cost of Doing Nothing with Knowledge Management
- 1. THE BUSINESS CASE FOR KNOWLEDGE & INFORMATION MANAGEMENT April 4, 2019 THE COST OF DOING NOTHING @EKCONSULTING@LULIT_T Lulit Tesfaye
- 2. HELLO! LULIT TESFAYE, PMP, CSPO, CSP PRACTICE LEAD, DATA & INFORMATION MANAGEMENT ENTERPRISE KNOWLEDGE, LLC @LULIT_T DATA & INFORMATION MANAGEMENT AGILE DELIVERY PROGRAM MANAGEMENT SEMANTIC MODELING KNOWLEDGE MANAGEMENT KNOWLEDGE GRAPHS @EKCONSULTING@LULIT_T
- 3. BEFORE WE TALK ABOUT WHAT WE AREN’T DOING… LET’S TALK ABOUT HOW WE GOT HERE… HOW MANY OF OUR CURRENT BUSINESS CHALLENGES ARE KM RELATED? Where can I find….?How do I….? What is the best way to …? How did we do this in the past? Have we done this before? I have been answering this same question for decades! Why are we not giving the same response to all our customers? I am pretty sure I have seen this before… @EKCONSULTING@LULIT_T
- 4. 90% 90% of the data and information in the world was generated just over the last two years.1 CONFRONTING TODAY’S KNOWLEDGE AND INFORMATION MANAGEMENT CHALLENGES 80% Over 80% of business leaders from Sales, HR, Procurement and other departments agree that they have different internal systems and applications that don’t ‘talk’ to each other.2 AI is set to be the key source of transformation, disruption, and competitive advantage in today’s fast changing economy, contributing to 45% of total economic gains by 2030.4 The average number of years the new workforce will stay with their employer is 4.4 years.3 @EKCONSULTING@LULIT_T
- 5. KNOWLEDGE & INFORMATION MANAGEMENT AT EK @EKCONSULTING@LULIT_T
- 6. KNOWLEDGE MANAGEMENT INVOLVES THE PEOPLE, CULTURE, PROCESSES, AND ENABLING TECHNOLOGIES NECESSARY TO CAPTURE, MANAGE, SHARE, AND FIND INFORMATION. @EKCONSULTING@LULIT_T
- 7. DECONSTRUCTING KM PEOPLE PROCESS CONTENT CULTURE TECHNOLOGY • Flow of knowledge through the organization. • Knowledge holders and knowledge consumers. • Understanding of state and disposition of experts. • Existence and consistency of processes. • Awareness of and adherence to processes. • Quality of processes. • State and location of content. • Consistency of structure and architecture. • Dynamism of content. • Understanding of usage (analytics). • Senior support and comprehension. • Willingness to share, collaborate, and support. • Maturity of “KM Suite.” • Integration with and between systems. • Usability and user- centricity. @EKCONSULTING@LULIT_T
- 8. KNOWLEDGE MANAGEMENT INFORMATION MANAGEMENT TACIT EXPLICIT UNSTRUCTURED STRUCTURED DISTRIBUTED CENTRALIZED THE KNOWLEDGE AND INFORMATION MANAGEMENT SPECTRUM @EKCONSULTING@LULIT_T
- 9. FIND CAPTURE ACT KM IN ACTION @EKCONSULTING Knowledge Management (KM) efforts exist on the same spectrum, with knowledge moving from tacit to explicit, and then content moving from unstructured to structured. The most effective KM efforts are those that are driven by business value and end user needs. Change management and communications play a critical role in effective KM initiatives. @LULIT_T
- 10. MEASURING BUSINESS IMPACT @EKCONSULTING KM ROI: MEASURING BUSINESS IMPACT
- 11. SOFT ROIHARD ROI ▪ Hard ROI is a return that can be directly associated to profit or loss for the organization. ▪ For example, Hard ROI for a Call Center might include: ▪ Average Cost of Call Center Agent ▪ Number of Calls Resolved or Not ▪ Soft ROI is a return that cannot be directly associated or measured but still holds perceived value for the organization. ▪ Soft ROI is not counted in the same way that hard ROI is, but it can still help support a business case by painting a complete picture of potential benefits. @EKCONSULTING@LULIT_T
- 12. THE COMPOUNDING BENEFITS OF KM @EKCONSULTING Time wasted looking for information Opportunity Cost of Inaction Realized Opportunities (ROI) Slowed decisions waiting for information KM IN ACTIONKM INACTION Increased rate of information flow Reduction in rework and repeated errors Consistent, high quality output of info products Embedded expertise retention and transfer Employee and customer satisfaction Reduced productivity from rework Costs of managing duplicate content Expertise lost to retirement/attrition High administrative burden to manage information Inconsistent messaging and brand delivery Faster onboarding and upscaling Content centralized in a minimal set of systems Clear edge over competition Foundations for Future Tech Faster decision making accelerates value delivery @LULIT_T
- 13. @EKCONSULTING Savings in Time & Productivity: ▪ Amount of time and lost productivity looking for Information ▪ Time Spent recreating content ▪ Time spent repeating answers and actions ▪ Costs of acting on the wrong information Staff & Customer Satisfaction: ▪ Customer retention ▪ Staff attrition Staff Development + Upscaling ▪ Upscaling training costs ▪ Ongoing training costs Employee + customer Satisfaction ▪ Improved quality of service ▪ Customer Confidence in brand ▪ Improved connections & collaboration Organizational Alignment ▪ Consistent messaging and brand delivery ▪ Alignment in decision making ▪ Transparency ▪ Retention of knowledge ▪ Culture of innovation and happy employees KM Business Factors # of Employees Avg Cost Per 1500 $50,0000 Calc ROI HOW WE CALCULATE KM ROI @LULIT_T
- 14. CASE STUDIES: WHY OUR CLIENTS INVEST IN KM @EKCONSULTING
- 15. CASE STUDY: PROFESSIONAL CONSULTING FIRM HARD ROI Improved Lead Generation and Sales by providing the sales team with a faster and easier mechanism to surface content, identify client needs (via risks), and translate them into additional products/services for the client. Less time looking for information. A 1% decrease in time spent searching results in $6.24M cost savings annually. SOFT ROI Staff are able to conduct holistic client conversations across Solutions and Sectors, driving the right conversations based on collective knowledge. CHALLENGE SOLUTION ▪ Need for a better way to understand the independent work, individual knowledge across Professionals, and their skillsets to better staff consultants for multiple projects and sell new services based on prior work. ▪ Peer-dependent knowledge transfer and holistic response to client needs. ▪ EK helped develop a taxonomy supported by a content strategy and governance, that classified clients, projects, deliverables, and consultant skills. ▪ Taxonomy was automatically applied across systems to enable development and auto-update of a single unified profile of consultants. ▪ Taxonomy enabled consultants to understand their business, the client industry, and current topics. @EKCONSULTING@LULIT_T
- 16. CASE STUDY: FINANCIAL INSTITUTION & INSURANCE COMPANY HARD ROI Issues resolved at level one results in annual cost savings of $629,292.00 (an increase from 53% level 1 closure to 75% level 1 closure). Realization of shorter call times through faster, more accurate responses to customers. Increase in number of self service resolutions that never make it to the call center representatives. SOFT ROI Increased customer satisfaction and loyalty. Improved culture and retention of knowledge. CHALLENGE SOLUTION ▪ First level call resolution rates were low because level one employees did not have quick access to the knowledge required to resolve user tickets and issues. ▪ As a result, many calls were escalated, increasing both overall costs per contact and call time lengths. ▪ Implementation of content strategy and governance along with a taxonomy& Search design. ▪ Allowed this institution to better prepare their staff to answer and resolve issues quicker and more efficiently. @EKCONSULTING@LULIT_T
- 17. CASE STUDY: FEDERAL AGENCY HARD ROI By consolidating to one EDMS, this agency realized an ROI of over $5M through reduced license fees, RM implementation fees, and maintenance costs both from the vendors and ongoing maintenance. SOFT ROI The centralized taxonomy and search supported and increased the efficiency of user searches as well as FOIA requests resulting in additional cost and time savings through improved findability. CHALLENGE SOLUTION ▪ Need for a centralized solution to make documents more findable so that they could retain the knowledge lost as people left the organization. ▪ Need for a way to classify content for records management purposes and meet NARA’s Records Management mandate. ▪ EK developed a strategy and business case to consolidate 12 DMS systems to a single Enterprise Document Management System (EDMS) along with a centralized taxonomy and search design. ▪ EK is now implementing an open source EDMS across all of the Agency. @EKCONSULTING@LULIT_T
- 18. WHERE SHOULD YOU START?
- 19. MAKING KM A PRIORITY 1 2 3 Identify a target state for long term implementation to make relevant decisions about KM investments and priorities. Understand your Knowledge and Information Management maturity state. Define your vision and align strategic priorities to gain executive buy-in @EKCONSULTING@LULIT_T
- 20. Develop KM Strategy & Roadmap Track, measure, communicate & adjust GETTING STARTED 4 65 Achieve continuous learning through iterative delivery @EKCONSULTING@LULIT_T
- 21. IN CLOSING… HOW MUCH IS INACTION COSTING YOU?