Building the enterprise of the future. How the new knowledge economy is changing the ground rules
| Pages | 91-99 |
| Published date | 26 June 2007 |
| DOI | https://doi.org/10.1108/03055720710759883 |
| Date | 26 June 2007 |
| Author | Arthur J. Murray,Matthew E. Sekella |
| Subject Matter | Information & knowledge management |
WORKPLACE INNOVATION:
ENTERPRISE OF THE FUTURE
Building the enterprise of the
future
How the new knowledge economy is changing
the ground rules
Arthur J. Murray
Applied Knowledge Sciences, Inc., Boyce, Virginia, USA, and
Matthew E. Sekella
Northrop Grumann Intelligence Reconnaissance Division, Hampton,
Virginia, USA
Abstract
Purpose – The paper seeks to examine briefly the economic drivers of the past, how those drivers
have changed, and how business and government leaders need to respond by transforming their
organizations into knowledge-based enterprises.
Design/methodology/approach – The approach applies the principles of classical economic
theory, which were grounded primarily in the valuation of tangible goods, to an economy in which
intangible goods, such as information and knowledge, are the predominant forms of capital.
Findings – The perishability of intangible goods is accelerating, and is further exacerbated by
increased globalization. Valuation-based theories of money and pricing, which have been overlooked in
the past, have resurfaced, and must be understood and practised by business and government leaders
alike. In response to these challenges, organizations must design and implement systems whichsupport
fast learning and rapid innovation. These new systems are called “knowledge factories”.
Practical implications – The major shifts in the economy are not readily visible on the surface. In
order to compete in a flat world, business and government leaders must revisit classical economic
theory and understand how to apply it to today’s knowledge economy. For example, in the past, talent
moved to where it was treated best. Now, the knowledge workforce lives where it chooses, and much of
the work comes to them. This has significant human capital and supply chain consequences.
Originality/value – There are many positive outcomes, not the least of which is a more robust
economy that takes full advantage of globalization, possibly to the point of approaching a system of
near-perfect competition. With the eventuality of bringing six billion minds to bear on solving complex
problems, the potential exists for a greatly improved lifestyle, continued explosive growth in human
knowledge, and increased prosperity, especially for those at the bottom of the economic pyramid.
Keywords Business enterprise,Economic history, Globalization,Knowledge economy, Innovation
Paper type General review
A (very) brief economic history of the world
In every economic transaction, something of value is traded for something that is
perceived to be of equal or greater value. For example, the price of a Big Mac, as
tracked by The Economist (2007), varies according to the perceived value of a popular
fast-food item, and the perceived value of the currency with which it is purchased[1].
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0305-5728.htm
Enterprise of
the future
91
VINE: The journal of information and
knowledge management systems
Vol. 37 No. 2, 2007
pp. 91-99
qEmerald Group Publishing Limited
0305-5728
DOI 10.1108/03055720710759883
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