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Knowledge ManagementMeasurement Dr. Birte Schmitz October 2002 Agenda An approach to measure the success of a knowledge management initiative Examples What does that mean for SIECC? Success of a KM initiative can only be measured with respect to prior objectives Align the strategy to KM “What must the business do to differentiate itself from competitors?…” “How can Knowledge Management be used to support these objectives in ways that other capabilities within the organization cannot?” Establishing measurement baselines Measurable indicators are derived from business goals A Balanced Scorecard is a possible means to represent and communicate these goals and derived indicators KM objectives can be set on different levels KM objectives are to be quantified along the following dimensions The next step is to determine KPI KPI should be: Simple Immediate, direct Concrete Two different business cases lead to a positive ROI: Cost Cutting Reduction of the time to write a new proposal Reduction of search time Reduction of travel expenses ... Generation of new business New business by intensified intra-company communication Higher win rate of proposals (number of proposals written compared to the number of new signed contracts) Difference between benefits of the project and ROI The benefits of a KM project can be measured with respect to the dimensions money, time, quality and risk The Return on KM-Investment only considers the financial dimension = conversion might be necessary. The KM-Investment is related to the financial benefits. Examples 1) Knowledge Management for the sales department Objectives: optimising the sales processes Solution: Support of the process of writing a proposal by introducing a DMS that offers text modules, won proposals (Best Practices) und information about the customer KPIs: Time between the request to make a proposal and the actual delivery of the proposal Ratio of delivered proposals compared to won proposals (Win Rate) 2) Support o
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