Cost saving with DKM
Case study: an international knowledge creating company, dealing with intangible assets only, woldwide headcount 700 consultants and back office employees, fast growth:
533 520 EUR saved per year.
Details:
Onboarding cost:
- 15% attrition rate(industries average 15-20%) + 10% growth means overall 25% new onboardings yeach year = ca. 150 newjoiners
- New joiners onboarding cost is 20% of his/her yealy income(industry average 25%).
- Average yearly income of a new-joiner (companies cost, -before taxes, social insurance, etc) – ca. 40 000 EUR (very conservative estimate)
- Onboarding cost yearly, companywide 1 200 000 EUR.
DKM is capable of reducing onboarding cost. Lets assume, – by humble 10%…that gives us a saving of
120 000 EUR per year
searching for Information
Knowledge workers spend time searching for internal information relevant for their ongoing tasks, – daily.
Various studies indicate from 1h to 4.2h per day – lets take the conservative 1h and 200 working days – which leads us to 200 hours per year spent on internal information search.
Assuming 1 employee costs a company 50 000 eur/year, – ca. 30 eur/h internal cost.
(excluding here new joiners – they are considered in the calculation above)
550 employees(700 – 150 new joiners) spends 3 300 000 EUR per year on internal information search
DKM is capable of reducing internal information search time, – this is one of the main aims of managing knowledge. Lets take another humble 10% and …that gives us a saving of
330 000 EUR per year
Information delivery
Every company has to deliver some global information to all employees. This seems like a no-brainer at first, yet lets have a closer look to the details. Following scenario:
- Companies security officer posts a news article on the intranet – pishing alert
- CIO reads it and notices instantly, – there is a mistake in action points. He suggests a correction, -article is sent again with additional comment “appologies, we missed one important detail”….
- Every employee has to open same inforation twice, which leads to, say, an additional minute. (1 minute is a very conservative estimate taking in account distraction and time fragmentation factors)
Lets calculate: 1 minute per 1 employee makes 7000 minutes per company = ca. 116 hours = 3480 EUR. Hence, each little glich in information delivery ends up with minimum 3480 EUR! . Lets assume we have 1 glich in 2 weeks and we get another solid
83 520 EUR per year
This could be completely avoided, if a proper approval process is in place and information delivery processes are well designed with digital components, reducing human errors to a minimum.
