knowledge

The value of knowledge and the knowledge work value chain

I ended my last post saying that the larger the demand of audiences for insight the larger the potential benefits when such insights are delivered. This sentence highlights an important point I have made before in my post: What’s in it for you? A personal knowledge management framework can make you earn more and become more satisfied

In a knowledge economy, knowledge is valued more highly than say physical labour. Let’s briefly look at the following chart taken from a Morgan Stanley Daily Economic Briefing (here):

 

The chart highlights quite well the overall trend of value migration. The contribution of manufactured goods to the overall value of the top three economic areas is constantly decreasing. Value typically migrates to knowledge intensive industries and away from manufacturing.

Consider this statement, found at enterweb http://www.enterweb.org/know.htm :

Enhanced knowledge work value chain and major strategic questions

In my last post I explained the importance of the audience as receivers of a knowledge worker’s output and as a source of information, i.e. supplier of input for knowledge work. I explained that it is important to ask: Where can you deliver exceptional value, which audiences show a thirst for the insights you can deliver and how can improve and become more effective and more efficient at creating valuable information for these audiences? In this post I will look at the audience in more detail. To start, look at the illustration below:

 

The illustration highlights again the value chain of knowledge work from a different perspective. When you compare this figure to the one I used to introduce the value chain of knowledge work, the difference is the role of information sources and information receivers (=audience). While in my first post I have not particularly stressed the fact that your audience is also your most important information source. This was the main message of my last post. In essence, the circle to the right describes the environment of information sources and information receivers. It highlights on the one hand people and on the other hand artefacts that are produced by people.

 

These artefacts have different formats, some may be written documents, others may be videos and still others audio recordings. These artefacts are always a result of knowledge work performed by people.

Is giving away knowledge for free good?

The spirit of open source has been distributed in uncountable subforms and interpretations and the "all for free intentions" of the web community have without a doubt contributed greatly to people's ability to access and work with digital media. However, not everything should be free - people have to eat and it's also nice for a family father to take his kids to the movies from time to time. If everything is free, how can twe earn our living?

When looking at some research studies on open-source, we find the common consensus that open source development is in no way near free. In fact, large contributers to open source products are corporations who employ core developers and contributers. The Linux operating system is to a large extent made available to people through integrators like RedHat or Suse - these companys commercially aggregate and enrich open source programs.

The same is the case for Drupal or Joomla. These two popular webCMS benefit greatly from the participation of companies that develop and sell Extensions commercially. For 3rd party developers the incentive is to create a unique extension that earns recognition whithin the community and to make it available for free to the public in order to get public awareness. It is finally not much less than advertisement for development skills.

Learning as the link between data and information to knowledge

As I have mentioned before (here ), learning is very closely connected to knowledge. What exactly makes the difference between knowledge, information and data? The illustration below summarizes these different factors and how they interdepend.

 

The image shows how data bits can become information and are transferreable into knowledge thereafter

 

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