Conclusion 04

Conclusion 04: Results

The good news is that KM systems came reasonably close to meeting expectations for the most frequently stated business goals for KM projects. Unfortunately, those targets were relatively "soft": increasing communication, aiding decision- making, enhancing customer satisfaction and enhancing employee productivity. The bad news is that while they were less frequently cited, every goal with more clear-cut financial objectives—including increasing profit margins, increasing revenues and lowering operating costs—delivered less than expected.

The top four business objectives—increasing communication, aiding decision-making, and enhancing customer satisfaction and employee productivity—were grouped tightly together from a statistical standpoint, cited by between 65% and 68% of CIOs with a system in place or being implemented. More ROI-related goals, such as increasing revenues and increasing profit margins, were lower priorities, at 52% and 50%, respectively. Meanwhile, reducing turnover was the least frequently mentioned goal, at 23%, closely followed by improving employee morale, at 25%.

ROI clearly takes a hit with KM, at least as implemented by those in our sample. While 57% of those responding expected lower operating costs, only 43% achieved them. Increased revenues were achieved by just 38% of respondents, and only 32% found they'd increased profit margins.

This article was originally published on 11-01-2001
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