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CHAPTER FOUR - Coggle Diagram
CHAPTER FOUR
K-Economy
Definition:
The knowledge economy is a system of consumption and production that is based on intellectual capital
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production, distribution and utilization of knowledge which contribute to be catalysts of growth and wealth creation in the economy.
knowledge, creativity and innovation play an ever-increasing and important role in generating and sustaining growth.
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the acquisition, utilization and dissemination of knowledge provide the basis for growth.
Why K-Economy
- To achieve sustainable rapid economic growth-ee
- To seek higher value-added -
- To sustain competitiveness – different fromother
- The impact of globalization – capital go-asset(k)
- The need to seek new sources of growth -asset
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K-company
Knowledge enterprise, also named as knowledge company or knowledge-intensive company, organization or enterprise
Knowledge enterprises are defined as enterprises where knowledge and knowledge-based products are offered to the market
Knowledge Company
- Aware and involved in deeper level of value of information
- Mining valuable details
- Running simulations
- Making a business out knowledge
Knowledge Worker
- Continuously learning workers
- What people know
- What people do
- Provide the brain – tru exp
K-Capital
INTELLECTUAL CAPITAL
IC can be defined as intangible assets such as information, knowledge that can be leveraged by an organization to produce asset
IC is the asset within the organization that operates to fulfill the needs and wants of their customers.
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Human Capital
Human capital refers to knowledge, education, work competence, and psychometric evaluations
Human capital is
- Stock of productive skills and technical knowledge embodied in labor
- Thinkers, Inventors, Innovators
- Not money, not machine
- Hired mind, not hired hand
- Organizational, not individual
How to Build Human Capital ?
- Communities of practice : A community of practice is a group of people who share a craft or a profession
- a network of surgeons exploring novel techniques
- Nurture & Recognize their importance
- Provide resources
How to Own Human capital ?
- Create Membership Communities
- Bonding, not locking their intelligence
- Compensation and Governance
Sample Human Capital
- Education
- Work experience
- Particular expertise
- Ability
- Cognitive Ability, not physical ability skills
- Communication skills
- Negotiation skills
- Artistic Skills
- Productivity
Structural Capital
- Represents the assets that complement the company’s human and process capital and enable the creation of value
- It is independent of employees. Most of a firm's knowledge exists in the minds of employees.
- Structural capital is any tool, process or information that helps a firm to retain knowledge or use it to achieve objectives..
Sample Structural Capital
- Management philosophy
- Methods
- Processes
- Procedures
- Tools
- Data
- Documentation
- Intellectual Property
- Media
Customer Capital
- Value of relationships that a firm builds with its customers
- The value of an organization’s relationships with the people with whom it does business, or the value of its franchise, its ongoing relationships with the people or organizations to which it sells.
- reflected in their loyalty to the firm and/or its products.
- are not reflected in a balance sheet.
Sample Customer Capital
- Corporate brands
- Market reputation
- Corporate advocates
- Customers
- Customer loyalty
- Distribution channels
- Business collaboration
How to invest in customer capital?
- Innovate with customers
- Collaborate/R &D with customers
- Empower Customers – feedback, survey
- Get Customer Feedback/Chat line
- Access to Technical Support Database
The 5 Ps
Planning
- It should clarify knowledge goals and establish effective values and processes to support these directions.
- Takes time and demands perseverance.
- Requires ongoing monitoring and measurement.
- Progressive review and re-planning to handle changing environment.
Products
- Each organization builds it’s own knowledge output.
- Might be shared to client or exist as internally shared knowledge objects.
- Explicit knowledge should be captured and distributed efficiently and timely.
- Example – Intranet.
Processes
- Knowledge management principles need to be put into application via effective workplace practices.
- Careful management of the alignment of strategies, principles, processes and practices needs to be done.
- Messages about what is important might be perceived differently across the organization.
- Need of the hour would be to monitor the actual process regularly to ensure that it reflects knowledge priority.
People
- The most important aspect is to recognize that strategic knowledge management lies with the people.
- People manage the system and processes.
- Need is to convince people about the benefits of strategic knowledge management.
Performance
- Regular review to ensure that the financial and social capital investment is positively influencing the intellectual and social capital of the organization.
- Regular evaluation to consider how well knowledge management is integrated into the business context
Critical success factors
- There is no silver bullet
- A working definition of knowledge is needed
- Sale-ability requires value demonstration
- Tacit knowledge cannot be ignored
- Focus on the future, not the past
- Respect confidentiality
- Secure management support