One of the most significant challenges in today's
knowledge work is to deal with explosion of "Information Overload". The saving
of workers time in searching, accessing, and filtering the vast amount of
information scattered across personal desktop, shared workspace, and
enterprise repositories can be measured and potentially translated to
hard-savings in workspace.
In the age of industry evaluation, we measure
productivities by yields and through-put of the workers on the assembly lines.
It is a bit harder to measure the
productivities in the information age as knowledge work performed today as
less mechanical and procedural in nature. Some type of work such as research
and development can be measured by number of patents, number of design
iterations, and product development lead times.
As an example, according to an IDC study
, a knowledge work spends around an
average of 9.5 hours per week searching for information. Based on the average
salary plus benefits of $60,000/year from Department of Labor (2005), this
would translate to $14,251.90 a year per worker. With improved enterprise
search, there are two possible out-comes depends on the nature of the work.
The knowledge workers can reduced the amount of the time spent on search for
information. Or the they might actually spent the same or even more time on
searching but discover more relevant information which results in improvements
in the quality of the job deliverables. In the first case, a saving 10% of the
time (1 hour per week) can be translated into potential saving of $1,425 a
year per worker. If we only effected a 10% of the knowledge worker population
at Ford, that would a saving of 3,000 x $1,425 = $4,275,000. Can this be
translated to reduced workforce in term salary and benefits paid? Probably
not, but we can safely say it would positively impacted the business bottom
line indirectly through better work through-put, increased quality, and
improved morale (reduced stressed at work). The second scenario is much harder
to measure. If a research scientist can find a new connections among
previously unknown facts due to improved search performance, the impact of
productivity gain can be measured by new patents and innovate products that
changes the competitive landscape in the industry. As we can tell, the
benefits of various technologies on productivities can be measured directly
through the amount of time saved. But the impacts are far more indirect and
potentially very significant.
As you can see, there is a lot of "IF" statements.
To a large degree, The numbers are anecdotal but yet very convincing to
reflect the order of magnitude of the positive impact. Like other strategic
investments, such as Knowledge Management, the returns are mixed with
multitude of other internal and external factors when it comes to impact on
bottom line. In a business environment of doing more with less, productivity
improvement is not a "nice to have" but a basic element for
survival.