How Inefficient Information Management is Costing Businesses Billions
Inefficient information management and poor communication cost knowledge workers billions of hours annually.
Last Update: Mar 17, 2025 | Published: Mar 14, 2025
Key Takeaways:
- Knowledge workers waste billions of hours annually searching for scattered data.
- Poor information management leads to redundant work, outdated insights, and slow decision-making.
- 50% of teams unknowingly duplicate efforts and 74% of executives cite communication barriers as a major issue.
Researchers have discovered that knowledge workers lose hundreds of hours each year simply searching for information, hindering productivity and efficiency. A new Atlassian study highlights these challenges, revealing how fragmented data and poor information management slow down teams worldwide.
The report titled “State of Teams 2025” is based on extensive research conducted by Atlassian’s Teamwork Lab, which surveyed 12,000 knowledge workers from various industries across the U.S, UK, Australia, India, Germany, and France. Additionally, 200 Fortune 1000 executives provided insights into organizational challenges and AI adoption.
What are the challenges faced by teams?
Atlassian’s report highlights that while employees have access to vast amounts of data, finding the right information is time-consuming. Scattered storage across multiple platforms and communication channels makes it even harder to retrieve structured data. Although Artificial Intelligence could improve information management, most teams lack the systems needed to use it effectively.
According to the report, employees waste a staggering 2.4 billion hours each year searching for information. Executives and teams spend 25% of their workweek just trying to find relevant data. In the UK, 56% of workers frequently have to ask colleagues or schedule meetings just to access the information they need.
Half of all knowledge workers say poor communication leads to teams unknowingly working on the same tasks. Meanwhile, only 20% of employees feel confident that their team has an efficient system for sharing updates across departments.
The report mentions that employees often struggle to verify whether the information they find is current or relevant, leading to reliance on outdated insights. Additionally, 74% of executives acknowledge that poor communication delays decision-making and lowers work quality. Consequently, employees frequently resort to ad hoc meetings to gather information, wasting valuable work hours.
What strategies can organizations adopt for exceptional teamwork?
According to Atlassian’s research, organizations can prioritize and document objectives to ensure that employees stay focused and can track progress effectively. It’s also advised to create shared platforms where project details, ownership, and dependencies are clearly mentioned. Businesses should store and manage institutional knowledge systematically, allowing AI to surface relevant insights when needed.
Overall, the research emphasizes the urgent need for businesses to adopt smarter collaboration strategies, minimize time wasted on searching for information, eliminate redundancies, and integrate AI-powered solutions. These steps can boost productivity, improve decision-making, and help companies stay competitive in the digital era.