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Cost-benefit analysis of implementing Video Knowledge Management
Introduction
Video Knowledge Management (VKM) is a system that captures, shares, and manages knowledge within a company through the use of video. It enables staff members to produce and distribute films that detail industry standards, instructions, and other crucial information. Organizations can boost collaboration, increase knowledge retention, and speed up the onboarding process for new hires by using VKM. The expenses related to conventional training techniques, such as in-person instruction and printed materials, can also be decreased with the assistance of VKM. VKM gives organisations a flexible and efficient method to share and manage knowledge.
This blog post's goal is to perform a cost-benefit analysis of a company's adoption of video knowledge management (VKM). It aims to give readers a thorough grasp of the advantages and disadvantages of implementing VKM, as well as a breakdown of the potential return on investment (ROI). In addition, the blog post aims to help readers decide for themselves whether VKM is a practical solution for their organisation by offering case studies and real-world examples of businesses that have successfully adopted VKM.
Benefits of implementing Video Knowledge Management
There are several benefits of implementing Video Knowledge Management (VKM) in an organisation. Here are some of the key benefits:
1. Increased knowledge retention
When compared to conventional training methods, videos are a more engaging and effective way of conveying information. Employees can record and share films of knowledge and best practises using VKM, which can improve knowledge retention within the company.
- For example in the case, a study by the Visual Teaching Alliance found that, when compared to other teaching techniques, videos can improve knowledge retention by up to 400%.
- For reference, compared to conventional classroom training, a business that used VKM for employee training reported a 50% increase in employee knowledge retention rates.
2. Improved collaboration
VKM enables employees to quickly share information and expertise with colleagues across the organisation. This can aid in the breakdown of silos and the promotion of collaboration and creativity.
- Video collaboration has been shown to boost output and foster better teamwork and communication, according to a study by Wainhouse Research.
- By using VKM, for instance, a consulting company was able to increase employee collaboration and creativity by 30% while also enabling the sharing of best practises and subject matter knowledge.
3. Faster onboarding of new employees
VKM can assist new employees with their onboarding by giving them access to a library of training videos and resources. This can help reduce the time and resources required for traditional onboarding techniques. Taking into account:
- A study by Training Industry found that 90% of businesses think e-learning can hasten employee onboarding.
- For instance, a software firm used VKM to speed up the onboarding process for new hires, cutting the time from three months to one.
Source: https://www.easygenerator.com/en/guides/employee-onboarding-training/
4. Cost savings
VKM can assist in lowering the expenses related to conventional training techniques, such as in-person instruction and printed materials. Organizations can cut back on the need for expensive and time-consuming in-person training sessions and resources by using VKM.
- Having said that, a study by the Brandon Hall Group found that using digital and e-learning solutions can help businesses cut their training expenses by up to 50%.
- By using VKM for employee training, one healthcare organisation, for instance, was able to reduce training expenses by $1.5 million.
Source: https://trainingindustry.com/articles/content-development/5-advantages-of-e-learning/
5. Accessibility
VKM is a great option for remote teams or employees who work outside of regular business hours because videos can be viewed from any location and at any time. For instance:
- According to a Wyzowl survey, 91% of companies use video as a marketing tool because it is both accessible and engaging.
- For instance, a technology business used VKM to give staff members access to training videos and resources at any time and from any location, which increased employee engagement by 25%.
Source: https://www.wyzowl.com/video-marketing-statistics/
Overall, implementing VKM can help organisations improve knowledge sharing and collaboration, reduce costs, and streamline training and onboarding processes.
Costs of implementing Video Knowledge Management
While implementing Video Knowledge Management (VKM) can provide many benefits, there are also costs associated with the implementation. Here are some of the main costs to consider:
1. Software costs
VKM software prices can change based on the vendor and the features offered. A one-time licence fee may be charged by some vendors, while others give monthly or annual subscription fees. A few hundred to several thousand dollars can be spent on it annually.
2. Hardware costs
The extent of the implementation will determine whether extra hardware is required to support the VKM system. For instance, the group might need to spend money on cameras, lighting, and sound gear if they want to produce high-quality videos.
3. Personnel costs
VKM content creation and management necessitates the use of specialists such as videographers, editors, and educational designers. To create and manage the video content, organisations may need to hire new personnel or retrain current employees.
4. Maintenance costs
Costs associated with ongoing maintenance could include server maintenance, software updates, and technical assistance. Particularly for bigger organisations with numerous users, these expenses can accumulate over time.
5. Time costs
Organizations must give employees enough time to produce and edit high-quality video material because it can take a lot of time.
Overall, the cost of implementing VKM varies based on the size of the organisation, the scope of the implementation, and the degree of investment in hardware and personnel. To make an informed choice, it is necessary to consider both the costs and potential benefits of implementing VKM.
Analyse the potential cost savings that VKM can provide in the long run
Although there are initial expenses involved in implementing Video Knowledge Management (VKM), there may be long-term cost savings. Here are some methods that VKM can eventually assist businesses in making financial savings:
1. Reduced training costs
VKM can assist in lowering the expenses related to conventional training techniques, such as in-person instruction and printed materials. Organisations can cut back on the need for expensive and time-consuming in-person training sessions and resources by using VKM. Additionally, the need for trainers to be personally present is diminished because employees always have access to training materials.
2. Increased productivity
VKM can help boost output by giving workers quick access to knowledge and resources. Employees may spend less time looking for information or awaiting assistance from coworkers or supervisors as a result.
3. Faster onboarding
VKM can assist new employees with their onboarding by giving them access to a library of training videos and resources. The time and resources required for conventional onboarding techniques, such as classroom instruction or one-on-one training meetings, may be reduced as a result.
4. Improved collaboration
VKM can promote collaboration and creativity by assisting in the dismantling of silos. Organisations can prevent costly mistakes and encourage more effective work practises by giving employees a platform to exchange knowledge and best practises.
5. Reduced travel costs
The costs linked to travel that come with conventional training methods can be decreased with VKM. Employees can access training materials from their own locations rather than having to journey to a central location for sessions.
Overall, these potential cost savings can build up over time, allowing organisations to see a return on their VKM investment. Although there are initial costs involved in implementation, these costs may eventually be outweighed by the long-term benefits.
Cost-benefit analysis
In the long run, particularly, the advantages of implementing VKM may outweigh the costs. However, it's important to take into consideration the particular costs and advantages for each company and to thoroughly assess whether VKM is the best option for their requirements. A comprehensive cost-benefit analysis is a critical step in making an informed decision.
Return on investment of VKM
The Return on Investment of implementing Video Knowledge Management (VKM) can vary based on the specific implementation and the organization's goals. However, several factors, including the costs and benefits discussed previously, can have an effect on the ROI of VKM.
Organizations should take into account the up-front costs of implementation, ongoing maintenance costs, and the possible rewards of increased output, lower training costs, and quicker onboarding when calculating the ROI of VKM. By dividing the net benefits by the overall implementation expenses, the ROI can be determined.
Let's assume, for demonstration, that an organisation invests $50,000 in the implementation and continuing maintenance of VKM over the course of three years. Due to improved productivity and decreased training expenses, they save $75,000 during this period. The net gain would be $25,000 as a consequence of this. Since there would be a net benefit of $25,000 and total expenses of $50,000, the ROI would be 50%.
The precise implementation and the objectives of the company will determine how long it takes for the investment in VKM to pay off. In some instances, organisations may see an immediate return on their investment in VKM, such as in the case of reduced travel expenses or improved collaboration. Other times, the advantages might develop incrementally over time, as with better knowledge retention or quicker onboarding.
In general, assuming the implementation is effective and the benefits are realised, organisations should anticipate seeing a positive ROI from VKM within two to three years of implementation. It's crucial to remember that as employees become more accustomed to the system and as the company gets more experience using it, the ROI of VKM can continue to rise over time.
Using these numbers, we can calculate the net benefits and ROI of VKM over a three-year period as follows:
These figures suggest that the advantages of using VKM exactly outweigh the disadvantages, producing a total benefit of $0 and a ROI of 0%. It's crucial to remember that this is only a depiction and that the real costs and advantages of implementing VKM will vary depending on the implementation's details and the organization's objectives. To determine the potential ROI of VKM, a thorough cost-benefit analysis should be performed for each company.
Additionally, cost-benefit analyses can be easier to comprehend and visualise by using graphs or tables. A line chart could be used to illustrate the anticipated ROI over time, or a bar chart could be used to compare the costs and advantages of VKM side by side.
Case studies
There are several companies that have successfully implemented Video Knowledge Management (VKM) to improve their operations and achieve better results. Here are a few examples:
1. Bosch
In order to enhance communication and knowledge sharing between its various divisions and locations, Bosch, a leading global technology company, adopted VKM. Bosch was able to shorten new hire training periods, enhance teamwork, and boost knowledge retention by producing and distributing video material. Bosch reported an improvement in productivity and a reduction in errors as a consequence. Bosch discovered how critical it is to produce top-notch video content and make sure that employees can quickly access it. Additionally, they discovered how crucial it is to evaluate the success of VKM and keep developing its strategies for execution.
2. GE Healthcare
VKM was adopted by GE Healthcare, a top supplier of medical technologies and solutions, to enhance the onboarding procedure for new hires. GE Healthcare was able to shorten the time it took for new hires to become completely trained and productive by developing video tutorials and training materials. GE Healthcare also claimed an improvement in overall operational efficiency and a rise in team member collaboration. GE Healthcare discovered that in order to guarantee the success of VKM content, it is crucial to involve employees in its creation and delivery as well as to offer ongoing assistance and resources.
3. Hilton
Global hospitality business Hilton implemented VKM to enhance employee training and growth. Hilton was able to provide more interesting and useful training materials that improved knowledge retention and work performance by producing and disseminating video content. Hilton also noted a drop in training expenses and a rise in employee satisfaction. Hilton discovered that it's critical to establish a culture of continuous learning and improvement within the business and to align VKM content with those aims and objectives.
4. Vodafone
VKM was implemented by Vodafone, a global telecommunications business, to speed up new hire onboarding and shorten the time it took for them to start producing entirely. Vodafone was able to deliver more interesting and effective training by producing video tutorials and training materials, which enhanced employee performance and knowledge retention. Vodafone also reported a drop in training expenses and a boost in general operational effectiveness. Vodafone discovered that in order to guarantee the success of VKM, it is crucial to involve employees in the creation and delivery of the content as well as in measuring its efficacy.
These case studies highlight some of the possible advantages of adopting VKM, such as enhanced teamwork, increased knowledge retention, quicker onboarding, and lower training expenses. These businesses were able to improve their operations and produce better outcomes by utilising the power of video content.
Curious to find out more companies that have implemented VKM? Check out our blog to read more success stories here: https://www.revidd.com/blogs/real-life-success-stories-of-video-knowledge-management-implementation
Conclusion
As a result, Video Knowledge Management (VKM) has become a potent tool for businesses to enhance their processes, boost productivity, and cut expenses. Companies can enhance collaboration, boost knowledge retention, and give their staff more interesting and efficient training by utilising the power of video material.
Even though implementing VKM has costs, such as those for software, hardware, and people, the potential cost savings in the long run may greatly outweigh these expenses. Companies can determine the ROI of VKM and how long it will take for the expenditure to pay off by conducting a thorough cost-benefit analysis.
Bosch, GE Healthcare, Hilton, and Vodafone are just a few businesses that have effectively implemented VKM and noted advantages like shorter training times, better collaboration, higher knowledge retention, and lower costs. These businesses have also picked up crucial lessons on the value of producing top-notch video content, involving staff members in the process, gauging success, and consistently enhancing and modernising both the content and distribution techniques.
In general, VKM can be a useful tool for businesses seeking to enhance their processes and produce better outcomes. Companies can empower their staff with the information and tools they need to succeed by investing in VKM, which will increase productivity, improve performance, and result in a more engaged workforce.
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