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| Business & Economy Article | | What is Knowledge Based Economy and How Can We Benefit from its Coming?What is knowledge based economy and how can we benefit from its coming? It has been a long time since the coming of knowledge-based economy was announced. The major change that is said to turn a society upside down is upon us now. But what does knowledge-based economy really mean? Definition Knowledge based economy is a kind of economy based solely on the production, distribution and the use of knowledge. In short, it means that the most important thing in the coming economy model will be knowledge and skills, not the material products. What's the difference? At first it may seem that there is only little difference between a normal economy model and a knowledge based one. In both we just create, buy and sell the products, and their nature seems to be exactly the same. But as we take a closer look, things change. There are a few reasons for that: 1. Knowledge is easily copied. If you've had a good idea, everyone will quickly adopt it unless you do something to prevent it. 2. Knowledge comes through the borders easier than material products. While Chinese are dangerous only to a few sectors of the US economy, knowledge-based economy model calls for moving most of jobs away from US to those countries that have skilled workforce, but are much cheaper than US (India, and eastern part of EU are the good examples of such places). 3. The knowledge is quickly becoming obsolete. You need to be prepared for constant creation of knowledge if you hope to keep up with your competitors. How to cope with knowledge problems in your company and benefit rather than suffer from the incoming changes? In short, knowledge based economy will create a lot of problems for small and large companies alike. Counterfeits and violation of your copyrights will eat your profits, most of your contractors will move their orders abroad and the situation in your company (and the whole economy) will change at the speed of light. However instead of fighting the inevitable we can profit from that. The coming of a new economy model will create as many new possibilities as problems. 1. You will be able to use outsourcing to minimize your cost. In the effect you will be able to offer lower prices while still having an upper hand because of running a business in US. 2. Instead of preventing everyone from using your ideas, go for paid Internet-sharing and let everyone profit from your concepts. Or leave it altogether, offer your ideas for free and profit from the advertisements and high traffic on your website. 3. With coming of knowledge based economy business management has become easier than before. Internet and cell phones make contacting anyone anywhere anytime possible. Use it! John Rowes makes it easy to understand role of intelligence in business. Learn essential skills in this important area on John’s http://www.acintelligence.com business intelligence site |
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