One and only certain thing in the universe is uncertainty. It shows that the change is the constant thing in every aspect of the world, whether it may be human nature, relationship, technology, business, economy, and weather. In the business context, the change is very dramatic from the beginning itself. From the early industrial revolution, through different transitions, now we are in the era of knowledge revolution. The management concept of business is changed from product based to people based. Now every enterprise knows that economy is based on the throughput of the people, in which information technology plays an important role. In a way we can say that economy is emphasized on knowledge based.
The definition of the word knowledge economy is easy to find but hard to understand same as knowledge. Ian Brinkley claims that the knowledge economy is considered as the simultaneous effort of the technology and well educated minds, which resulted in creation of wealth (2006). In a simple way, the investment in knowledge based economy is becoming higher compared to the investment in physical capital (Brinkley, 2006). It tells the importance of the knowledge based economy which is enclosed under the technology.
The result of these kinds of changes is may be because of the dramatic change in the phase of information technology. In the last two decades the growth of information technology was exponential. The field of information technology is new compared to the other fields like mechanical and electrical; still the distance covered by the information technology is much higher compared to others. This explosion resulted in the low cost in computing and communications, which eventually resulted in the development of applications which are suitable for the end user (Houghton, Sheehan, 2000). By the use of technology the firms can maneuver their knowledge to gain the economic advantage which every organization is looking for (Keith Smith, 2000). It shows that intensity of the knowledge is increasing on the introduction of new technologies, which enhanced the manipulating power of the knowledge (Houghton, Sheehan, 2000).
One of the other main factors which boost the knowledge economy is the globalization. By the openness of the world market and the regulation, the economy is became a single entity. The effect on any specific affects the whole economic world and the recent example is the recession, which started from one place but slowly and steadily affecting the whole economy. Because of the international nature of the business due to the globalization the technologies the knowledge ideas can be accessible to any firm. The nature of the cheap, smarter workforce is also an important point which directly affects the economy, which leads the concentration of the economy towards countries like India and China (Houghton, Sheehan, 2000).
The use of information technology enhanced the market to be a single one. The organizations with adaptable capability are going to survive in this new era, in a sense the organizations must learn from the experiences and from the economy. In the new era of the organization there must be a good culture for knowledge nurturing and it has to start from the root. The people must be capable of getting the right information to replicate in the other way which helps the organizational context. As mentioned above the proper use of information technology within an organization is a must to for an organization to grow forward (Jhamb, Kaushik, 2008).
Knowledge based economy of the organization depends on the organizational learning and using the best practices of the information technology. However there are a lot of other factors other than the technological stuff which improve the knowledge economy, but the enhanced use of technologies and innovations are the reasons for the new era of knowledge. Business enterprise which cultivate themselves by taking care of the flow of knowledge and by generating knowledge culture is going to survive in the upcoming years. As we can say the breadth of knowledge economy is large enough in which knowledge management plays key role towards the success.
Reference:
• Jhamb, R., Kaushik, S., 2008, Changing dimensions and growth of knowledge based economy oh India, JOURNAL OF ACADEMY OF BUSINESS AND ECONOMICS, Volume 8, Number 3.
• Brinkley, I., 2006, Defining the knowledge economy, Knowledge economy programme report,
Available:http://www.theworkfoundation.com/assets/docs/publications/65_defining%20knowledge%20economy.pdf, accessed on 30th march 2009.
• Houghton, J., Sheehan, P., 2000, A Primer on the Knowledge Economy, Centre for Strategic Economic Studies,
Available:http://www.cfses.com/documents/knowledgeeconprimer.pdf, accessed on 30th March 2009.
• Smith, K., 2000, What is the ‘knowledge economy’? Knowledge intensive industries and distributed knowledge bases,
Available: http://www.druid.dk/uploads/tx_picturedb/ds2000-123.pdf, accessed on 30th March 2009
The definition of the word knowledge economy is easy to find but hard to understand same as knowledge. Ian Brinkley claims that the knowledge economy is considered as the simultaneous effort of the technology and well educated minds, which resulted in creation of wealth (2006). In a simple way, the investment in knowledge based economy is becoming higher compared to the investment in physical capital (Brinkley, 2006). It tells the importance of the knowledge based economy which is enclosed under the technology.
The result of these kinds of changes is may be because of the dramatic change in the phase of information technology. In the last two decades the growth of information technology was exponential. The field of information technology is new compared to the other fields like mechanical and electrical; still the distance covered by the information technology is much higher compared to others. This explosion resulted in the low cost in computing and communications, which eventually resulted in the development of applications which are suitable for the end user (Houghton, Sheehan, 2000). By the use of technology the firms can maneuver their knowledge to gain the economic advantage which every organization is looking for (Keith Smith, 2000). It shows that intensity of the knowledge is increasing on the introduction of new technologies, which enhanced the manipulating power of the knowledge (Houghton, Sheehan, 2000).
One of the other main factors which boost the knowledge economy is the globalization. By the openness of the world market and the regulation, the economy is became a single entity. The effect on any specific affects the whole economic world and the recent example is the recession, which started from one place but slowly and steadily affecting the whole economy. Because of the international nature of the business due to the globalization the technologies the knowledge ideas can be accessible to any firm. The nature of the cheap, smarter workforce is also an important point which directly affects the economy, which leads the concentration of the economy towards countries like India and China (Houghton, Sheehan, 2000).
The use of information technology enhanced the market to be a single one. The organizations with adaptable capability are going to survive in this new era, in a sense the organizations must learn from the experiences and from the economy. In the new era of the organization there must be a good culture for knowledge nurturing and it has to start from the root. The people must be capable of getting the right information to replicate in the other way which helps the organizational context. As mentioned above the proper use of information technology within an organization is a must to for an organization to grow forward (Jhamb, Kaushik, 2008).
Knowledge based economy of the organization depends on the organizational learning and using the best practices of the information technology. However there are a lot of other factors other than the technological stuff which improve the knowledge economy, but the enhanced use of technologies and innovations are the reasons for the new era of knowledge. Business enterprise which cultivate themselves by taking care of the flow of knowledge and by generating knowledge culture is going to survive in the upcoming years. As we can say the breadth of knowledge economy is large enough in which knowledge management plays key role towards the success.
Reference:
• Jhamb, R., Kaushik, S., 2008, Changing dimensions and growth of knowledge based economy oh India, JOURNAL OF ACADEMY OF BUSINESS AND ECONOMICS, Volume 8, Number 3.
• Brinkley, I., 2006, Defining the knowledge economy, Knowledge economy programme report,
Available:http://www.theworkfoundation.com/assets/docs/publications/65_defining%20knowledge%20economy.pdf, accessed on 30th march 2009.
• Houghton, J., Sheehan, P., 2000, A Primer on the Knowledge Economy, Centre for Strategic Economic Studies,
Available:http://www.cfses.com/documents/knowledgeeconprimer.pdf, accessed on 30th March 2009.
• Smith, K., 2000, What is the ‘knowledge economy’? Knowledge intensive industries and distributed knowledge bases,
Available: http://www.druid.dk/uploads/tx_picturedb/ds2000-123.pdf, accessed on 30th March 2009
Hi MJ
ReplyDeleteWell your article is good in the sense it gives us good ideas about the common man in context with knowledge .
but you had mentioned in the end that technology alone is not enough and you also said about some other factors .
can you expalin in brief what are the other factors.
From your last paragraph,I understand that breadth of knowledge economy is large,but have not discussed how it could be narrowed down in Business enterprise to bring success.
ReplyDeletewaaw you have given a new ideas , relating globalization and recession to KM .
ReplyDelete