Two-thirds of European banks and insurance companies are failing to exploit their intellectual capital effectively by not having a knowledge management (KM) strategy in place, according to research undertaken by Xerox and the Institute of Financial Services.
The survey, conducted among the top 200 banks and 100 insurance companies across Europe, shows that only one third of those companies surveyed have a KM programme in place and that a mere eight per cent are in the process of setting one up. Further, the report highlights that in 37 per cent of the companies surveyed, no one individual has clear responsibility for KM.
Although the figures show that 30 per cent of companies are examining the need for KM programmes, they also reveal that almost 30 per cent are not considering implementing one at all. Of those that have initiated a KM programme, only 36 per cent have had it in place for two years or more.
The poll points to a number of reasons for the slower than expected take-up of KM practices. Fifty per cent of respondents cite a simple lack of understanding of the benefits of KM. Other barriers to adoption include knowledge held in too many formats/repositories (37 per cent) and no incentive to share knowledge (32 per cent).
The research suggests that the banking sector's approach to KM is too conservative. The figures show a far higher awareness of KM and its benefits among insurance companies than amongst banks. Only one insurance company admitted that it was not considering a KM programme.
Commenting on the research, Richard Cross, knowledge management principal, Xerox, says: "It's quite clear that some companies are drowning in information and risk being outflanked by companies that more effectively exploit the knowledge that exists within their organisations."