RESTON, Va., Nov. 9, 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, the authority on 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.

"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, federal market analysis for 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. 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, is a strong model for other agencies.

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," added 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."

INPUT's Federal Knowledge Management MarketView report is available to INPUT Network(TM) members subscribing to the Federal Market Analysis program. For more information on the subscription program, visit federal.input.com or call 703-707-3500.

About INPUT

INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,000 members, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit http://www.input.com or call 703-707-3500.

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Media Contact: Dayna Tenorio
dtenorio@input.com