Knowledge Value Drivers

Excerpt from Value Creation in the Knowledge Economy,

 Verna Allee's article published by HR Monthly (Australia), 1998.

 

If Knowledge is the Answer, What is your Question?

Any enterprise shapes itself uniquely according to its fundamental strategic drivers. Each of the following value drivers requires a somewhat different emphasis in the type of intellectual capital that is being created. Each also results in very different knowledge management practices and measures of progress. Before examining and adopting other companies' management practices, look for practices that support the same strategic initiatives that are important to your enterprise.

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Knowledge Value Opportunity

Sample Measure

Top Companies

Customer Intimacy

 

 

Intimate knowledge of customers for the purpose of providing world class service, or to customize and target marketing of products and services

Breadth and depth of
customer purchases

AMEX

PointCast

Intellectual Property

 

 

Increasing and managing a portfolio of codified and/or patented knowledge that contributes to the financial value of the enterprise

Value of patents

Dow Chemical

Monsanto

Process and Product Quality

 

 

Experimenting with, researching and sharing best practices to increase quality of products, and serve and enhance performance

Spread of best practices

Chevron

Texas Instruments

Innovation

 

 

Expanding knowledge required to rapidly generate, produce and market new and innovative products and services

Time to market

Hewlett Packard

Microsoft

Knowledge-Based Products

 

 

Generating additional knowledge value in the value chain to deliver higher value, "intelligent" products, and establish uniqueness

Number of knowledge-based enhancements

Arthur Anderson

FEDEX

Rapid Response

 

 

Increasing adaptability, flexibility and responsiveness in a constantly changing environment

Change management speed
and efficiency

Chaparrell Steel

Skandia

This work is licensed under a Creative Commons Attribution 2.5 License.

©1998-2009 Verna Allee