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.