Defining a Decade Envisioning CSTB's Second 10 Years (1997) / Chapter Skim
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9 UNIQUE CHALLENGES: COMPUTING AND TELECOMMUNICATIONS IN A KNOWLEDGE ECONOMY
9 UNIQUE CHALLENGES: COMPUTING AND TELECOMMUNICATIONS IN A KNOWLEDGE ECONOMY
Pages 73-82
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From page 73... ...
There is little argument about the fact that this transformation is taking place and that human capital and intellectual capital are going to be the principal sources of competitive advantage in this new era. There is little controversy about the shift in balance among labor, capital, land, and knowledge as we have gone from an agricultural to an industrial economy and now as we move toward a knowledge economy.
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From page 74... ...
Economic Eras Sources of Advantage AGRICULTURAL ERA INDUSTRIAL ERA KNOWLEDGE ERA ___ II ~___ Land Natural Resources Security Population I Labor Engineering Skill Capital Market Access | | Knowledge Skills Flexibility Continuous Learning FIGURE 9.1 Economic eras and sources of advantage in each. SOURCE: Ron Bohlin, vice president, Digital Equipment Corporation, "Knowledge Networking: The Major Productivity Breakthrough."
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From page 75... ...
Today, economists (as well as the World Bank, which has published some statistics on this subject) estimate that human capital accounts for more than half of all of the wealth in the United States and other economically advanced nations.
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From page 76... ...
Just because human capital represents this aspect of wealth in our nation today does not necessarily imply that we are going to be a global winner in this knowledge era without deliberate intent. I have some thoughts for the Computer Science and Telecommunications Board (CSTB)
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From page 77... ...
If anybody was going to have a chief knowledge officer (and I think it is a peculiar title myself) it would be an organization that has concluded that, in the future, both competitive advantage and comparative advantage will rest on its ability to mobilize both internal and external intellectual assets on behalf of its customers-and its ability to do it more efficiently and faster than its competitors.
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From page 78... ...
It is an across-the-economy phenomenon. The World Bank recently decided that it is not a bank, it never really was a bank, and it never should have FIGURE 9.4 Fishnet organization model.
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From page 79... ...
At the same time we are moving into the information age in order to directly convert knowledge into revenue, we are also focused on creating and leveraging human capital and doing that with some speed and some facility. The following quote by Andrew Grove, chief executive officer of Intel, that I have been carrying around with me for some years is still true today, and to be perfectly honest, I do not know how old it is.
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From page 80... ...
quality of life. We need a much better understanding of the pace of the massive shift in business process execution from labor to technology; the implications of this new era for wages, employment, and work location; intellectual capital asset management issues; and some of the new rules for the game that we are beginning to play.
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From page 81... ...
Dislocations are going to happen much faster than society can handle. One thing I proposed a few years ago to an industry forum, which nearly lynched me, was that we should begin taxing the information industry every computer and every piece of software at a 5 percent rate and create a dislocation fund just like the North American Free Trade Agreement fund.
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From page 82... ...
By far, Skandia and the Canadian Imperial Bank of Commerce are in the forefront of this field in terms of quantifying and measuring intellectual capital on an annual basis, and representing to the shareholder the fact that its valuation is as critical as financial capital valuation. Balance sheets that have to do with intellectual assets are as critical as balance sheets that have to do with financial capital assets.
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