1,1,Transforming Knowledge: The 21 Century Wealth Driver,Dr. Charles M. Savage Knowledge Era Enterprises, Inc.,“Shaping our Future ” Cable & Wireless Optus Melbourne, October 28, 1999,3,Knowledge, A Map Please?,4,Historical Eras,Agricultural,Industrial,Knowledge,5,Sharing of logs Superstition: Unlucky to go out twice with the same crew Known split of profits from the trip,Whaling Industry Prototype of Knowledge Intense Industry,6,Knowledge & Energy,Aspirations,Capabilities,Aspirations,Capabilities,Person A,Person B,7,Sources of Wealth: Agricultural Era,Labor Hands,Knowledge Heads,Capital: Money & Machines,Land & Resources,8,Sources of Wealth: Industrial Era,Labor Hands,Knowledge Heads,Capital: Money & Machines,Land & Resources,9,Sources of Wealth: Knowledge Era,Labor Hands,Knowledge Heads,Capital: Money & Machines,Land & Resources,10,Sources of Wealth:,Labor Hands,Knowledge Heads,Capital: Money & Machines,Land & Resources,11,Sources of Wealth:,Labor Hands,Knowledge Heads,Capital: Money & Machines,Land & Resources,Economy of Scarcity,Economy of Abundance,12,New Vortex of Understanding about Knowledge Era,Nolan & Norton, 1988,Balanced Scorecard,Customers,Finance,Learning & Development,Processes,What investments in our customers bring them excellent results?,How can we better organize our knowledge?,How do we leverage the value of our customers knowledge?,How can we use ours and our customers knowledge more effectively?,Innovating with our customers!,15,Knowledge Turns,16,0.1 0.5 1 5 10,Finding Faults Finding Strengths,Trust Distrust,=,=,Individuals:,Functions/ Departments:,Lines of Business:,Suppliers/ Partners:,Customers:,Customers Customers:,5,0.5,10,Knowledge Turns (2),17,Knowledge Turns: Results,18,Knowledge Turns: Results,19,Industrial Era: Conceptual Confinement,I find little trust in the organization Others are always looking for my weaknesses My intellect & emotions are not valued Relationships are not important,20,Knowledge Era: “Production” through Dialogue,Values (trust) are key I must discover others capabilities & aspira- tions to build upon We excel in teaming our competencies to seize opportunities Learning enhances earnings,21,Tangible Assets,Visible Finance,Cash AR PPE External Internal Personal Competence,Short-term Debt Loans Stock Equity Invisible Equity Obligation,Karl-Erik Sveiby,Customer Capital Structural Capital Human Capital,Key Elements of Knowledge Capital,22,Financial Focus,Process Focus,Customer Focus,Human Focus,Renewal & Development Focus,IC Framework at Skandia,23,Skandia Navigator Model,Financial,Capital,Human,Capital,Structural,Capital,Intellectual,Capital,Market Value,Industrial Era,Agricultural Era,Adam Smith James Watt,Henri Fayol Frederick W. Taylor,Industrial Era,Agricultural Era,Industrial Era,Agricultural Era,A,B,C,Culture of Mistrust Culture of Devaluing,Master Servant Relationship,With One Another,Employer-Employee Concept,“+/”,“X”,Industrial Era,Knowledge Era,Agricultural Era,29,Supply Chain,Supplier,Company,Customer,30,Supply Chain - extended,31,Customers Needs and Aspirations,Problems & Needs,Aspirations & Opportunities,32,Supply Chain: Needs & Aspirations,Needs,Aspirations,Transactions,Opportunities,33,Valuing Cluster: Interactive View,Company,Customers,Suppliers/Partners,Customers Customers,34,Skandia AFS Working the Whole System,Skandia,End Users,Funds Managers,Brokers,Wholesale Annuities,Manage Funds,Sell Annuities,Invest in Future,Select,Events,Uncertain Future,Study,35,84,Skandia AFS Working the Whole System,Skandia,End Users,Funds Managers,Brokers,2400,85,000,1.5 Million,Aspirations,Capabilities,Customers Customers,Customers,Company,Knowledge Era Enterprising and Dynamic Teaming,Aspirations,Aspirations,Aspirations,Capabilities,Capabilities,Capabilities,Suppliers/ Partners,“x”,37,Transactions,Product Solutions,Business Solutions Mass Customization,Partnering Dynamic Teaming, Virtual Enterprising & Knowledge Networking,Structural Capital,Human Capital,Customer/Supplier Capital,Evolving Business Model,Pace of Change,Knowledge Requirements,Nolan & Norton, 1988,Your Company in 2001?,+ / ,“ X “,Processes,Finance,Learning,Customers,Imaginative,Systemic (Context Giving),Operational,Interpersonal Inter-Organiza-tional,Values Subtracting Value,7,Industrial Era,Division & Subdivsion of Labor,Distrust & Devaluing,Follow Instructions,SWOT,Processes,Finance,Learning,Customers,Imaginative,Systemic (Context Giving),Values Multiplying Value,7,Knowledge Era,Operational,Interpersonal Inter-Organiza-tional,Benchmarking & Benchbreaking,Dialoguing & Innovating with Customers,Teaming & Alliancing,Redefing Rules & Seizing Opportunities,43,Competitive Power of Intellectual Capital,Intelligence and knowledge with unique insights your competitor cant envision Innova