But what can increased productivity do for you? Well for one thing, the methods to achieve improved organizational productivity -- such as improved access to relevant information and improved collaboration -- can significantly help mitigate risk and let organizations make better business decisions. But that's just scratching the surface. Let's dive deeper in our next installment of our series.
Improved organizational productivity can lead to lower costs across an organization in functions involving:
- Service desks;
- Expertise management (improved knowledge retention when staff retire or are laid off, knowledge flow when new practices/insights are shared, knowledge de-centralization);
- Collaboration (shorter design times, fewer mistakes, improvement in quality); and
Specifically, it is through the correct categorization, cataloging, and organizing of information into its appropriate taxonomies that the capture of knowledge becomes most effective. Providing effective means to search for and browse through information leads to better knowledge reuse.
Going back to our previous example, average software Year 1 expenditures were around $60K, with average annual subscription fees of $30K. Again, additional factors, such as hardware costs, content subscription fees, and IT admin costs have not been factored in this analysis.
The costs of a fully loaded employee are assumed to be $100k, and the average time wasted per employee on ineffective information search is 30 percent. Table 1 below illustrates the reduction in productivity as a calculated cost and the resulting net cost savings from a RIF. (Click the image to enlarge.)
Table 2 illustrates the ROI, timing of the return, and total cost savings from implementing a social knowledge management solution.
Again, in the above analysis, the additional costs associated with hardware, content subscriptions, IT overhead, etc. are not taken into consideration. However a reasonable assessment of these typical costs would still return a significant cost savings. A deeper analysis on a case-by-case basis would need to be conducted to properly assess the ROI for any particular situation. I'm happy to help you delve further.
SKN Value Prop: Organizational productivity increases by creating knowledge communities focused on a particular problem.