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Entopia's ROI Methodology Uses Realistic Adoption Rates Enabling Companies To Assess Cost Savings, Revenue Enhancements, and Productivity Gains

BELMONT, CALIF. (Monday, March 11, 2002) – Entopia™, Inc. an innovator in the emerging field of bottom-up knowledge management, today unveiled a return on investment (ROI) calculation model that enables companies to determine realistic ROI and tangible benefits associated with the deployment of knowledge management platforms.

Many ROI calculators for traditional knowledge management solutions wrongly assume a 100 percent adoption rate of the new technology overnight. Entopia's methodology takes a realistic approach that recognizes the adoption rate of any new technology will start low but gradually increase over time. Adoption rates associated with deployments of knowledge management solutions are a critical metric in determining a company's ROI.

A primary reason traditional knowledge management solutions have not succeeded is because adoption has been slow and, in many cases, never becomes pervasive. Entopia has focused on understanding how to overcome the cultural barrier and end-user resistance to KM adoption. Entopia's technology is designed to achieve high adoption rates because it is typically embraced on a personal or individual level, and thereby made a permanent part of a company's work culture. These improvements in individual and workgroup productivity across the enterprise are used to create intellectual capital, which is then leveraged.

"Despite the increasing sophistication of knowledge management technology, KM is still -- and always will be -- a fundamentally human endeavor," said Charles Luce, Delphi Group Senior Analyst. "As such, behavioral and cultural factors impacting the adoption rate of a new KM platform must be a primary consideration in ROI analysis. Entopia understands this implicitly -- the company therefore drives end user adoption by appealing, first and foremost, to knowledge workers' desperate need for desktop tools to intelligently classify, retrieve, and share key knowledge assets."

The unique aspect of Entopia's solution is that it begins to provide significant return on investment even in the rollout process. ROI calculators are designed to estimate the money companies will make or save by investing in and deploying a specific technology. A large percentage of key business initiatives traditionally proclaim dramatic improvements in productivity and financial savings without providing companies with quantifiable metrics. Entopia developed a comprehensive ROI calculator to help companies quantify the benefits of deploying a knowledge management solution thus providing further validation that knowledge management makes good business sense.

"The intrinsic economics of using Entopia's software suite is obvious, but we developed this ROI calculator to help companies overcome the ambiguity traditionally associated with knowledge management deployments, so they can make informed decisions that improve their companies performance and bottom line," said Peter Katz, executive vice president, Entopia. "Entopia's knowledge management solutions are specifically designed to increase individual and enterprise productivity, saving companies time and money. In today's current economic climate, we feel that providing companies with the tools necessary to determine a realistic ROI is critical so they can make informed and effective business decisions."

Entopia's ROI calculator calculates benefits in three key areas:

  • Cost Savings - Enterprises deploying a knowledge management platform will save costs and increase the productivity of individual users by shaving hours off the following knowledge-oriented tasks: information organization, information search and retrieval, expert location, avoidance of work duplication, unnecessary face-to-face meetings (when digital collaboration is possible), and manual contributions to KM solutions (when automatic, background participation is possible).
  • Revenue Enhancements - Knowledge management platforms enable companies to quickly and effectively leverage the intellectual capital and digital assets throughout their organization enabling them to make better decisions, shorten time to market and close more deals.
  • Intrinsic Knowledge Management Value -- Additional benefits come from the ability to capture the intellectual capital that currently walks out the door, capture hidden explicit knowledge residing on employee hard-drives, reduce knowledge lost in the transfer of information, add context and experience to the base of corporate intellectual capital, gather tacit knowledge by capturing the ideas, experiences and solutions residing in the minds of employees, and generate a competitive advantage through the optimization of knowledge transfer and the creation of intellectual capital.

The ROI calculator is currently available by contacting Entopia or visiting to schedule a demo.

About Entopia

Entopia is an innovator in the emerging field of bottom-up knowledge management. By empowering the individual first, Entopia's Quantum software facilitates personal productivity and collaboration, allowing the enterprise to capitalize on work already done. A Microsoft Certified Partner and member of the Oracle Partner Program, the privately held Entopia is backed by global media and communications powerhouse Vivendi Universal. Entopia was recently selected as one of "100 Companies that Matter in Knowledge Management" by KMWorld Magazine. Headquartered in Silicon Valley, California, Entopia has additional sales offices throughout the US and research and development offices in Israel. For more information, visit

Entopia, Inc. is a trademark of Entopia, Inc. Caucho Technology is a trademark or registered trademark of Caucho Technology, Inc. in the United States and other countries. Oracle is a registered trademark of Oracle Corporation. All other names are used for identification purposes only and may be trademarks of their respective owners.

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