Resilience and HR

What drives the new economy?

Joanna  Dourou
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Started by Joanna Dourou on
26 Feb 2013 at 11:32
Education Manager, K3-Cubed Ltd.
Know-how: Talent Management, Executive Search, Project Execution, Training & Coaching
Technology

 

We live  in a new era, a newly-shaped market, a new economy. There are certain new rules that drive this new economy towards the direction of knowledge. The new economy is often referred as “knowledge economy” and it’s mainly focused on the arrival of knowledge workers and the great importance of knowledge in creating wealth. 

Businesses are altered and what plays a crucial role in their survival, their profit and their competitive advantage is their preparedness to adopt new technologies, new information, new knowledge. These new rules lead to the restructuring of organisations and force them to follow new technologies and abide by new processes and systems, in order both to innovate and compete with their rivals.

It is technology and its accelerated progress that changes the world, promotes innovation, creativity and connectivity and encourages the development of internal organisational processes. In this knowledge economy, skilled workforce is required, new skills are on demand and new or existing knowledge shall not be lost or misused. The importance of knowledge for companies today is still slightly realised, although it’s knowledge, knowledge management systems, knowledge technologies and workforce upskilling and empowerment that drives economic growth.  In this interconnected, globalised economy, knowledge resources, know-how, expertise, skillful workforce are as critical as other resources and equally determine organisational growth.

Human minds are better appreciated in knowledge economy, for employees use their minds, their heads instead of hands, in order to produce, innovate and work effectively. In this restructuring, businesses are also expected to introduce technological solutions, social media and computer networking in day-to-day activities and learn their employees how to use them effectivily. The desired outcome of this is to be based on intellectual capital and promote connectivity, enhance cooperation and communication among employees and facilitate knowledge creation, knowledge use and knowledge transfer.

Joanna Dourou

Comments

Joanna  Dourou
Hi Tom,

Thanks for the comment and for sharing the above link with me! It is true, nothing compares to face-to-face interaction when it comes to knowledge sharing, especially among employees. However, I can rather perceive social media, as a facilitator of this interaction, rather than a factor of long-term decline. Both should be utilised to enhance collaboration and knowledge distribution and when face-to-face interaction is not possible, social media or in general communications technology, can interfere and help with new ideas exchange. Knowledge sharing is also reinforced through webinars, LinkedIn, Online conferences etc., especially when it comes to exchanging ideas with other professionals outside your company (but always with the precaution of competition). For me, it is just a matter of how you use technology and whether you use it as an alternative/complementary-to-face-to-face-interaction way of knowledge exchange and communication...As Socrates has said: "Everything in moderation, nothing in excess".

Joanna
Tom  Ellingham
Hi Joanna, Interesting read.

On the narrower subject of technology - specifically, communications technology - which I agree will continue to be a key driver of the new economy. there was a BBC news feature yesterday reporting Yahoo is now banning remote working, and the same is actively discouraged in Google.

http://www.bbc.co.uk/news/magazine-21588760

If we want to share knowledge and facilitate new ideas, nothing yet beats interaction in shared physical space. Could an over reliance on communications technology been a significant factor in Yahoo's long-term decline - did it disparate the workforce, and impact the companies goals and ambitions?

Tom
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