Objectives of knowledge management

1 
Are the levels of usage sufficient? Extranets require a substantial investment, so efforts 
need to be made to encourage usage since we are asking the users of the service to change 
their behaviour. It is in the organisation’s interest to encourage usage, to achieve a return 
on their investment and achieve the cost efficiencies intended.
 2 
Is it effective and efficient? Controls must be put in place to assess how well it is 
working and improve its performance. Return on investment should be assessed. For 
example, visitor levels can be measured for different types of audiences and the level of 
usage for accessing different types of information can be assessed. The direct and indi-
rect cost savings achieved through each extranet transaction can be calculated to help 
assess effectiveness. For example, 3M, manufacturer of many products including office 
products such as Post-it notes, has an extranet to connect to the office supply retailers 
(see www.3m.com/uk/easy). Retailers download the latest price lists and promotional 
information such as product pictures. Each digital download represents a significant 
saving in comparison to shipping physical items to the retailer.