Measuring the Return on Knowledge Embedded in Information Technology

Abstract

We propose a methodology for measuring the return on knowledge in company processes. We argue that one promising approach is to formulate the problem within the context of a knowledge management framework. That is, we will demonstrate that it is possible to measure the impact of knowledge embedded in information technology (IT) deployed in an organizationís core processes. In this sense, the core process knowledge embedded within IT is a particular instance of knowledge used to produce core process outputs. We provide a case example of the application of the knowledge value-added (KVA) methodology to provide a ìproof-of- conceptî example of how measuring the value added by IT might be approached. We discuss the implications in terms of the generic requirements for any methodology attempting to solve this problem as well as how the results of the use of KVA can be applied to analyze the potential value added by IT.

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