Federal Knowledge Management Spending Expected to Reach $1.3 Billion by FY10

Lapses highlighted by Katrina will prompt increased focus on information-sharing processes and systems, INPUT reports

Lapses highlighted by Katrina will prompt increased focus on information-sharing processes and systems, INPUT reports

Reston, VA  November 11, 2005  U.S. Federal Government spending on knowledge management solutions is expected to increase 35 percent over the next five years to reach $1.3 billion by fiscal year 2010 (FY10), according to a report released today by INPUT, a consultancy specializing in government business.

Recent information lapses highlighted by Hurricane Katrina will cause OMB and Congress to be even more focused on getting agencies to move forward with the development of information-sharing processes and systems, according to INPUT.

"The mere possibility that improved information sharing between and within federal, state and local agencies could have resulted in a more efficient disaster recovery after Hurricane Katrina, or potentially prevented September 11, provokes an extremely unpleasant opportunity cost analysis," said Chris Campbell, senior analyst for federal market analysis at INPUT. "As a result, the integration of fully developed knowledge management solutions will stand out even more as a necessity rather than a luxury."

Knowledge management systems will begin to focus on tying all of an agency's information together and making it available in a manner that is supportive of the agency's management or mission performance process, INPUT believes.

Enabling Communications

A large part of knowledge management systems will be focused on enabling communications so that an agency can tap into its greatest knowledge base, its employees. The Army's knowledge management initiative, centered on the Army Knowledge Online Management (AKO) program, could serve as a strong model for other agencies, INPUT said.

According to the consultancy, vendors must be able to aid agencies in establishing and implementing a protocol that dictates how data will be collected, stored and organized, as well as which employees will have access to certain types of information, and in what manner the information can be used.

"Agencies will look for vendors to help them revamp their knowledge management process, making it imperative for vendors to focus on knowledge management as a complete process, not just a software or hardware fix," said Campbell. "The key consideration for vendors when dealing with agencies is to consider them as one enterprise and develop solutions that will address knowledge management requirements at an enterprise level."

Additional Articles of Interest

 For more information on U.S. government efforts to transform its civilian and military supply chains, see the article "e-Pluribus Unum: Uncle Sam Wants 'e'...Or Does He?," in the June/July 2002 issue of iSource Business (now Supply & Demand Chain Executive) magazine.

 For additional news relating to trends in government IT spending, please see the following articles covering previous INPUT reports: