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.

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
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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
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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?

22. QUESTIONS?
HTTPS://WWW.LINKEDIN.COM/COMPANY/
ENTERPRISE-KNOWLEDGE-LLC
@EKCONSULTING
571-403-1109
INFO@ENTERPRISE-KNOWLEDGE.COM