Knowledge Management Return on Investment Calculator


The use of a broad spectrum intranet and/or extranet within an organisation delivers compelling returns on investment. Studies by leading accounting firms demonstrate what can be acheived in relatively short time frames. The savings mean that not implementing a KM system is seriously handicapping businesses. Use the chart below to get an idea of what could be acheived in a relatively short time with a successful implementation.


Input your business assumptions here

Work Efficiencies and Access to information, files and documents

  1. Number of staff/users
  2. Average number of hours per week that staff or users work
  3. Average number of weeks per year that staff or users work
  4. Average number of days per year that staff work
  5. Average cost per staff member per hour (dollars)
  6. Average cost to recreate a document or file (dollars)
  7. Total number of existing and new documents that are actively used per year
  8. Percentage of time saved searching and accessing information used in Intralogic
  9. Percentage of existing documents that are lost, staff do not know where they exist and are recreated each year

Work Efficiencies — Email

  1. Average number of email interrupts per day per employee
  2. Average cost per email interruption (dollars)
  3. Percentage in reduction of emails and email based information distribution via Intralogic knowledge base

Automated Business Processes (Workflow automation)

  1. Number of common Manual (paper based) business processes (i.e. Leave Request, Travel Requests, etc)
  2. Average cost associated with each manual business process (each transaction) (dollars)
  3. Average number of business process requests (transations) per staff/user per year
  4. Percentage cost savings for each business request (transaction) that is automated by Intralogic

Savings Each Year
Accessing and Sharing Information and Documents

---

Accessing knowledge, information or documents — Employees saving time with more efficient access and searching for information and documents

Calculation: A x B x C x E x H
---

Recreation of information, documents and files after they have been lost, misfiled or staff don't know they exist

Calculation: F x G x I
---

Reduction in emails, email based information distribution and email interrupts

Calculation: A x D x J x K x L
---

Automating business processes (requests) — going from manual paper based processes to Intralogic's workflow automation

Calculation: N x O x A x P

---Total Estimated Savings:


Other Major Cost Savings

$50,000

Freeing up IT of gatekeeper duties

$35,000

Freeing up 1 or 2 Intranet, Extranet and Web Administrators

$10,000

Freeing up staff required to maintain contact and staff phone lists

$0 to $millions

Legal and compliance issues — Proper dissemination of policies and procedured, OH&S, etcetera

more than $95,000Total for other major cost savings:

Price Waterhouse Coopers estimate that 20-40% of workers' time is wasted searching for documents.

These calculations are examples to help you understand potential tangible benefits. Actual cost savings may vary.