The implications for business in the new digital age Knowledge Fusion: Opportunity or risk?

Knowledge management has already become part of the business vocabulary. It is heralded as the next generation of key issues to be addressed by the business community. Exploiting the intellectual capital of organisations is seen as a major opportunity. The converse situation also exists as organisations seek to protect what rests not in their systems but inside the minds of their people.

Despite the advent of the technological age real value that is created within organisations is not generally contained within its intellectual property but held in the minds of its key staff. This is particularly true when one looks at the neutralisation of manufacturing capability, where the essence of industry lays in IP not hard ware.

As business in the west move towards the integration of global networks and strives to harness low cost opportunities in the world arena. The risk of melt down of intellectual capital becomes an increasing threat to their long stability. The result of this concern has been the emergence of new concepts from the IT world. Aimed at protecting and consolidating the fundamental knowledge that is created on a day to day basis.

The underlying problem however, is that at the same time business ventures are also being encouraged to take full advantage of the potential growth and opportunity that exists by the linking of corporate systems and processes. PSL has long established concepts that there is true benefit and opportunity to be derived from the appropriate integration of separate business organisations. Focusing on what each does best to provide new value propositions.

These approaches where developed firstly to enhance the drive to outsourcing. They have in cases proved to be very successful in addressing the key issues facing global competiton. Through its expertise and development of various management tools PSL has help organisations in both the private and public sector come to grips with the necessary cultural evolution. Within this field of development there has always been a constant focus on sharing of intellectual data. Since with out a sharing of key information the realisation of potential was likely to fall short of the promise.

As part of the support PSL gives it has continued to focus on ensuring that all parties to the partnership recognise what they are giving away. Helping them to rationalise the benefits and manage the risks. It has proved on many occasions that what is considered intellectual property is often falsely categorised. In fact proving that a more open approach is neither risky nor debilitates position or relative power.

Having supported the view that sharing of knowledge has significant benefits to be contributed to the supply chain. It must know be recognised that technology is moving much faster than most organisations can absorb the potential or risks. The emergence of smart systems, now coming forward, gives rise to serious implications for many business operations.

On the one side one sees a drive towards the integration of disparate organisations. These will form inter linked virtual entities, variable life spans. Being created and dispersed in line with market drivers. This offer great potential for organisations of varying sizes to match their specialist talents and skills and forge new trading opportunities. In developing these networks there is a common need to link systems and share knowledge to an extent that has not yet been fully exploited.

The counter position is that with the technology that is now being harnessed there is also ability, as never before, to soak up information. Therefore the greater the integration the higher the risk. The extension of this technology is to be able to analyse data that may seemly be disconnected and formulate a wider field of understanding. In this fusion of knowledge intellectual property may inadvertently pass between organisations that may then disperse. The eventual outcome being the dispersion of intellectual capital.

This concept may strike horror into the hearts of CEOs and as a result slow down the adoption of new approaches. Hopefully this will not be the case. Instead it is PSL’s view that providing the appropriate risks are identified early the technology can be harnessed to facilitate an evolution in trading practices that can be advantageous to all.

Utilising the skills and experience that PSL has accumulated over the last decade, in facing these problems in the pre Internet age. It will be possible to ensure that companies and prospective partners are able to build valuable relationships and protect their birthright whilst capitalising on the opportunities ahead.