Knowledge economy and Intangible assets Knowledge management Knowledge economy and Intangible assets

Knowledge economy Post-industrial era, information age, knowledge economy Shifts in major sources of wealth creation in society General motors, health insurance, spending on steel High unemployment rate (Google and Apple) Patents Patent troll is a pejorative term used for a person or company that enforces its patents against one or more alleged infringers in a manner considered (by the party using the term) unduly aggressive or opportunistic, often with no intention to manufacture or market the patented invention. The move from an industrially-based economy to a knowledge or information-based one in the 21st Century demands a top-notch knowledge management system to secure a competitive edge and a capacity for learning. For several decades the world's best-known forecasters of societal change have predicted the emergence of a new economy in which brainpower, not machine power, is the critical resource. But the future has already turned into the present, and the era of knowledge has arrived. --"The Learning Organization," Economist Intelligence Unit

Industrial sectors in Taiwan

Order foods, giving tips

Experience economy A good example is Starbucks. Starbucks sells more than just coffee. They present themselves as the “third space” (between home and work); this is their why story, then comes how they do it (comfortable chairs, lots of power outlets, tables at which people can work) and finally what they do (fresh coffee).

How value is created The classification for each stage in the evolution of products is: A commodity business charges for undifferentiated products. A goods business charges for distinctive, tangible things. A service business charges for the activities you perform. An experience business charges for the feeling customers get by engaging it. A transformation business charges for the benefit customers (or "guests") receive by spending time there.

Economics 2.0 in practice The software layer is a major factor in the economic well-being All of the intangible factors that make the food court possible.. (Kling and Schulz, 2009) Protocols and receipts Practices (i.e. ways of doing things) Norms; mental models; shared assumption, cultural values; script (restaurant, order, recycle) Infrastructure Physical, legal, ...

Capital Factors of production Any form of wealth employed or capable of being employed in the production of more wealth.

Intellectual capital Human capital Social capital Structural capital Individual capabilities Social capital Capacity to collaborate Structural capital Organization’s processes, systems, and procedures Syllabus/class policy and procedures and structural capital

Human capital The knowledge, skills, and experiences and experiences possessed by individual employees Explicit conceptual knowledge Tacit knowledge

Structural capital “everything that remains in a firm after it’s employees go home” Includes the explicit, rule-based knowledge embedded in the organization’s work processes and systems, or encoded in written policies, training documentation, or shared databases of “best practices.” Also include intellectual property, recognized by patents and copyrights. Practices All the rules, grading policy encoded in the syllabus The class atmosphere, teacher’s lecture style; class portal, Class infrastructure, classroom arrangement. Architecture/ phen suie? All faculty at the same level, College of arts and humanities, Organization restructuring, KM, leadership, innovation certificate, programs e.g. Open thesis defense

Organizational structure, rules and practices Pixar headquarter and the legacy of Steve Jobs If a building doesn’t encourage [collaboration], you’ll lose a lot of innovation and the magic that’s sparked by serendipity. So we designed the building to make people get out of their offices and mingle in the central atrium with people they might not otherwise see.” 3M’s 15 percent and 30 percent rules 30% of each division’s revenues must come from products introduced in the last four years. Post-it Google’s 20 percent rule Gmail The biography adds that Jobs believed that, “If a building doesn’t encourage [collaboration], you’ll lose a lot of innovation and the magic that’s sparked by serendipity. So we designed the building to make people get out of their offices and mingle in the central atrium with people they might not otherwise see.” The atrium houses a reception, employee mailboxes, cafe, foosball, fitness center, two 40-seat viewing rooms, and a large theater – and was planned by Jobs to house the campus’ only restrooms. The idea was that people who naturally isolate themselves would be forced to have great conversations, even if that took place while washing their hands. Today, they do have more than one restroom, of course. But it was the idea behind it that was important. Brad Bird, director of The Incredible and Ratatouille, said of the space, “The atrium initially might seem like a waste of space…But Steve realized that when people run into each other, when they make eye contact, things happen.” And did it work? “Steve’s theory worked from day one,” said John Lasseter, Pixar’s chief creative officer “…I’ve never seen a building that promoted collaboration and creativity as well as this one.”

Social capital “features of social organization, such as networks, norms, and trust that facilitate coordination and cooperation for mutual benefit (Putnam, 1993).”

Social capital and KM Reduce transaction costs Search, experience, credential Criteria for seeking advice A relational view of information seeking and learning in social network p. 437. p. 440 Produces higher quality of knowledge Psychological safety Uncertainty and interdependence Fairness A source of inimitable competitive advantage Highly contextual and specific to the group performing the task. “Common information” problem Difficult in managing knowledge workers Web troll troll [trol] 這幾年用來指喜歡在網路上刻意發表激怒別人的言論的人 也包含故意張貼「牛頭不對馬嘴」，和主題亳無關聯的留言的人 這個字也可以當動詞，指用以上方式刻意激怒別人、「鬧」別人 原本 troll 當動詞是指一種釣魚方式 Pilot reports unanimously Self production/vs. group Information cascade

Social capital Social capital and knowledge sharing The ability of groups to collaborate and work together Cognitive Ability Structural Opportunity Relational Willingness

KM from the in intangible assets perspective “The deliberate design of processes, tools, structures, etc. with the intent to increase, renew, share or improve the use of knowledge represented in any of the three elements of intellectual capital.”

Elements of intellectual capital

Intellectual capital 智慧資本 人力資本 結構資本 關係資本 本質 智力 流程 關係 範圍 內藏於員工 形成 本質 智力 流程 關係 範圍 內藏於員工 儲存於組織內員工間的協調合作 儲存於組織外部顧客、夥伴、供應商的協調合作 衡量方式 知識的質與量 流程的效率 關係的長久 外顯困難度 高 中 最高 信任 文化 支援 關係資本, social capital Within and beyond individuals/organization Customer relationship, governmental regulatory agency (e.g. wall street ), suppliers relationship, financial relationships The social capital of Denmark and New York. Can knowledge be alienated; detached

Examples of structure capital 3M has a rich set of structures and systems to encourage resourcefulness: Seed Capital: Inventors can request seed capital from their business unit managers; if their request is denied, they can seek funding from other business units. Inventors can also apply for corporate funding in the form of a Genesis Grant. (The Post-it was funded by a Genesis Grant.) New Venture Formation: Product inventors must recruit their own teams, reaping the benefit of 3M’s many networking forums as they seek the right people for the job at hand. The recruits have a chance to evaluate the inventor’s track record before signing up. However, if the product fails, everyone is guaranteed their previous jobs. Dual-career ladder:: Scientists can continue to move up the ladder without becoming managers. They have the same prestige, compensation, and perks as corporate management. As a result, 3M doesn’t lose good scientists and engineers only to gain poor managers, a common problem in the manufacturing sector.

Knowledge Management Social capital Human Structural Today’s intellectual capital Knowledge Management Social capital Human Structural Organizational learning Future intellectual capital Personal: social, human, and structure… (harder for a person to “change” parts.) Organization: social, human, and structure Intellectual capital grows with use Fig. Intellectual capital grows with use

Intellectual capital and complexity of decision Decision requiring more integration should have social and human capital as their investment focus. Figure 4.4. Why?