Inaccessible knowledge is costing the world billions – it’s time for a learning revolution
In today’s rapidly changing world, companies across all industries recognise the importance of keeping their workforce up-to-date, relevant, and productive to meet modern demands and stay competitive.
The corporate training market is projected to grow to $475 billion by 2027, highlighting the significance of continuous learning. However, poor access to critical information and outdated resources are hindering the effectiveness of training efforts, leading to inefficiencies and significant financial losses, and even missing out on revenue generating opportunities.
In OBRIZUM’s inaugural industry research, we address these challenges and quantify the inefficiencies that exist with large scale organisations, in doing so helping businesses to unlock their full potential in the knowledge economy.
Here’s a summary of what we found.
The productivity conundrum
Our research revealed that the time taken by knowledge workers to find relevant information is hindering productivity and imposing significant costs on businesses and the economy.
A substantial portion of the workforce (18%) is unable to locate the information they need daily, and 28% spend approximately three to four hours each day searching for crucial information. This amounts to a considerable waste of working hours, resulting in financial and resource burdens for businesses.
Additionally, a significant proportion (30%) of employees resort to external sources, including competitor websites, if they cannot find the required information internally. What’s to stop employees from jumping ship to competitors who provide better access to knowledge?
The struggle to find information also affects employee confidence, with 69% lacking trust in the relevance and accuracy of available resources. The problem cascades through teams as colleagues frequently rely on each other for information, leading to wider wasted resource.
Perhaps even more concerning is the fact that employers admit that a significant portion of their knowledge resources are outdated. Coupled with a significant disparity between employers and employees regarding the ease of accessing information, the problem becomes two-fold.
Siloed information across departments and the lack of central indexing in the majority of businesses is fuelling the productivity conundrum, and the inefficiencies incurred continue to have a detrimental impact on organisations.
The business cost
We’ve established that there is an issue around productivity, but what does it mean for the bottom line?
The financial impact of outdated and inaccessible information can be analysed from three perspectives: the cost of employees searching for information, the cost of reworking resources, and the cost of seeking help from colleagues.
We calculated that knowledge workers cost organisations £15,261.65 per year per employee simply searching for information. Additionally, the time spent reworking outdated resources costs £2,601.21 annually, while seeking help from colleagues adds up to £2,699.25 per year per worker.
In total, the average annual cost of ineffective access and outdated information is £20,562.10 per worker, equivalent to around 35.6% of their salary. Needless to say, this enormous cost is a major hindrance for businesses attempting to thrive in the knowledge economy.
A lost opportunity
Not only are productivity inefficiencies costing organisations from an operational perspective, but they are also losing out on potential business opportunities and valuable employees due to the lack of accessible information.
The estimated loss in revenue for businesses over the past year is significant: 16% reported missing out on £1 million to £5 million worth of deals, 23% missing out on £500k to £1 million, and 32% missing out on £250k to £500k.
These inefficiencies are taking a toll on the workforce too, with almost half of workers feeling less able to improve their skills and 22% considering leaving their jobs.
By extrapolating these costs to the wider UK economy, ineffective access and outdated information is costing the UK economy up to a shocking £25,750,000,000 per year.
Unlocking information through the power of technology
Tackling such an enormous cost is incredibly overwhelming, but it all ties back to how businesses manage and maintain knowledge resources for their workforce.
The evolution of knowledge is a critical aspect of remaining competitive in today’s dynamic business landscape and our AI-powered adaptive learning platform is built to overcome the challenges of poor access to information and outdated resources.
By harnessing the power of AI and adaptive learning, businesses can unlock the full potential of their workforce, ensure continuous learning, and stay ahead in the knowledge economy. It is through the synergy of technology and human capital that organisations can thrive and drive sustainable growth in the face of rapid change.
Download our report Unlocking Information in the Knowledge Economy.
OBRIZUM is the AI learning technology & data analytics company for enterprise businesses.
We leverage automation, adaptability and analytics to deliver adaptive learning experiences at scale.
Find out how OBRIZUM can help unlock the potential of your business by speaking to our team.