Measuring the ROI of Knowledge Management - Return on Knowledge (ROK)™

Abstract : When presenting a KM strategy or project to management, it is understandable for them to ask whether the investment in the implementation of such a strategy/project will have a positive effect on the company’s performance, especially in terms of important factors like implementation costs and profitability.

What is the answer? This is difficult, but it is important to consider what you plan on achieving by implementing a KM project.

One response to the question regarding the return on KM could be that implementing a KM project would have the following significant benefits for the company:

  • „„An increase in the company’s ability to innovate;
     
  • An increase in labour productivity;
     
  • An ability to manage the risk of losing critical knowledge; and
     
  • Saving time and reducing the costs of information processing.

These benefits will be explained in the following sections...

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