Knowledge is the business model

An introduction to the way during which new knowledge can be utilized in innovations that add a lot of value to the offerings of a business model.

As part of the series of articles regarding the inspiration provided by Peter Drucker’s contribution to understanding innovation and its role in adding value to the business model, i will these days write regarding the importance of recent knowledge. this is often clearly associated with but nevertheless distinct from the issues of recent inventions and new ingredients and inputs into production as understood in the standard sense. However, it's attainable to check some kinds of new knowledge as completely different and distinctive inputs into knowledge- or experience-based business products. this means that there's, conceptually a minimum of, a brand new paradigm of modern production ways that indicates the necessity for entirely new thinking – but that may be a subject for one more day.

New knowledge, in general, is content that may be applied broadly to the production of a large vary of products or services or take another facet of the value chain and modify that. although there's a tendency to think of the large-scale and exciting breakthroughs in knowledge in this context (e.g. stem cell technology), the nice majority of aspects of recent knowledge are comparatively small in nature, seemingly of limited interest and quite presumably arcane in nature – few folks, too few extremely, understand the processes or possibilities of the ‘industrial magic’ of the chemistry or physics that is truly used to make and do things. Consider, when reading the ingredients in any kind of processed food, simply how many separate items are concerned and how many interactions and tests are required to get the combo good, in addition as adhering to all necessary safety standards and laws. Even alittle improvement in the production ways of 1 such item could easily have a significant impact on a large vary of things.

The alert entrepreneur will, of course, always be ready to consider the impact of the application of recent knowledge, rather than being inquisitive about the character of the knowledge itself. many value-adding innovations return from adapting an application utilized in one industrial sector or market and using it in another one. This, after all, is the origin of the post-it note. this suggests that the entrepreneur is constantly inquisitive about the ways that business are operated and attempting to work out the explanations for any changes or enhancements, with a read of course presumably to using constant plan in a wholly completely different context (no one desires to be sued for infringing protected intellectual property, though most people live like me in countries like Thailand where respect for such rights is limited). follow creativity to boost your skills in this area.