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The high cost of not finding information
Chapter 1 and 4. Article by Susan Feldman of IDC in KM World about cost of searching for information. Similar to Outsell (2001) research presented in Chapter 4.
Key extracts
Success rates for finding information
" - Knowledge workers spend from 15% to 35% of their time searching for information.- Searchers are successful in finding what they seek 50% of the time or less, according to both Web search engines and our own surveys. An IDC study in 2001 ("Quantifying Enterprise Search," IDC, May 2002) found that only 21% of respondents said they found the information they needed 85% to100% of the time (see Figure 1).
- 40% of corporate users reported that they can not find the information they need to do their jobs on their intranets."
Time wasted in reworking information
"Some studies suggest that 90% of the time that knowledge workers spend in creating new reports or other products is spent in recreating information that already exists. In 1999, a European study by IDC examined that phenomenon, called the "knowledge work deficit," and concluded that the cost of intellectual rework, substandard performance and inability to find knowledge resources was $5,000 per worker per year."Cost for an enterprise of a thousand knowledge workers who earned an average salary plus benefits of $80,000 a year
" - The time spent looking for and not finding information costs our mythical organization a total of $6 million a year. That doesn't include opportunity costs or the costs of reworking information that exists but can't be located.
- The cost of reworking information because it hasn't been found costs that organization a further $12 million a year (15% of time spent in duplicating existing information).
- Not locating and retrieving information has an opportunity cost of more than $15 million annually. Accelerating the introduction of a blockbuster drug or delaying its demotion to generic status by just one day through use of information access software could mean $8.5 million or more each day.
- Increased e-commerce revenue pays for the improved search software in a couple of months. Companies like Charles Schwab, Lands' End, Staples or Macy's have increased their commerce revenue by amounts like $125,000 per month, or 400% in average deal size.
- Call center costs and volumes have been decreased by 30% and more when better search and browsing tools were implemented."
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