| Abstract: | Illustrating the return‐on‐investment (ROI) for a portal solution or knowledge management (KM) system has proven an elusive target. This paper will demonstrate that ROI can be found for portals and KM systems in measuring the ROI on improved processes and increased economic value of employee performance. Thus, rather than employing traditional notions of value and assets as noted in standard accounting practices, KM solutions are tools managers should use to support opportunities for process improvement and redesign. ROI that measures value from this perspective creates new areas of value from an organization's existing, undervalued assets. A well‐developed measurement methodology for implementing a KM system may illustrate ROI, justify expenditures for implementing the system, and provide a format to ensure that process improvement occurs. A well‐thought‐out KM system has the capability of becoming the “digital nervous system” of an organization, tying all areas to the strategic goals of an organization. |
