Value-The life Blood of Capitalism: Knowledge is the current key

Ruth RikowskiUniversity of Greenwich, London, UK. (2000)

Present by: Efrain Rivera

At these present times, we are witnesses of a new phase of modern economics, it is knowledge revolution. The success for this knowledge revolution is base on the creation of value, that is extracted from knowledge.

Rikowski (2000) argues that capitalism goes through different phases, the Agrarian Revolution, the Industrial Revolution, and now Knowledge Revolution .

Capitalism and modern economics are essentially dependent on value. This is the current phase of capitalism and it is link with the success of knowledge, on how is used, applied and validated.

Gilder (1989) disputes that the states of the basic tenet of knowledge revolution will be the “overthrow of matter.” Wealth, in the form of physical assets will diminish, while wealth, in the form of knowledge assets will increase. The power of mind will usurp the brute force of things .

Value-The life Blood of Capitalism :Knowledge is the current key Introduction

Jeremy Rifkin (2000) indicates that the industrial age emphasized the exchange of goods and services, the coming age will emphasize the exchange of concepts.

Knowledge revolution is determining the way the game is play in moderns economics. The success of industries in this latest phase of capitalism depend on the way of transition into this knowledge revolution and into their key components .

Knowledge revolution is the early phase of a major economic revolution.

This revolution is supported around the concept of a post-industrial era, where productivity base on making things is increasingly automated and routine; creating things is difficult and value therefore derives from creation and from the intellectual capital or knowledge base of the firm or nation (Potter, 1999).

Value-The life Blood of Capitalism :Knowledge is the current key

Knowledge Revolution

Knowledge Revolution is being shape

Value Platform

Global Capitalism

Value creation through

Knowledge

Value

Philosophic method

ground in knowledge

Economics

knowledge Manageme

nt

Modern economics is based on thin air and that most of us make our money from the air; we produce nothing that can be weighed, touched or easily measured.

(Leadbeater,1999)

Value-The life Blood of Capitalism :Knowledge is the current key

The key components of the Knowledge Revolution

Why is call knowledge management ?

Is base on value, that needs to be extracted from knowledge in today’s economy and so knowledge itself is crucial.

McFarlane (1998) identify knowledge as special sets of beliefs which integrated abstractions from our experience into a capacity for effective action.

Why is relevant a philosophic definition of knowledge management?

Critics don't understand, why is crucial to use concept like “epistemology” , describe by Oxford English Dictionary (1998) as a theory or science that studies the methods grounds on knowledge. They see the management of knowledge as a consumption of concepts, beliefs, and experiences which are “people management” not a philosophic or science method.

Rikowski (2000) argues that the terms recommended by the critics, “people management” is incorrect when taking about knowledge management, because that is incline to a human resources concept not knowledge management

concepts.

Value-The life Blood of Capitalism :Knowledge is the current key Knowledge Management

Knowledge management primary concern is to ensure business success , one step to secure this is by separating the concepts of knowledge management from information management .

Knowledge information is the process gathering data / Knowledge management is understanding and interpreting data.

Value-The life Blood of Capitalism :Knowledge is the current key Knowledge Management vs. Information Management

Information Managemen

t

Knowledge Managemen

t

The meaning of value?

The business module of value is examined by the production of good, service and products of consumption; engaging in the creation of value.

Tapscott (2000) says that innovation drives everything, competition and investments, but this is only possible by the creation of new ways of value.

In today global economics, capitalism, use value by transforming commodities into the marketplace (ex. Production of Metals), then commodities are exchange for value.

Marx & Value

Marx (1848) understood that value in all of it dimension, surplus, exchange, adding and value it self is define by labor.

Labor explore value, by creating a multifaceted, multidimensional concept of value that is only created through the power of labor.

Value-The life Blood of Capitalism :Knowledge is the current key Value

Value-The life Blood of Capitalism :Knowledge is the current key Marx on Value

Marx saw commodities in two forms: Physical-Form / Value-Form

Physical

form

Material

s

Physical nature

Substance &

components

Iron, plastic, wood

Value form

Specific creation

of products

Feeds perpetu

ates capitali

sm

Used & validati

onHuman Labor

Marx transfer commodities into value:

Value-The life Blood of Capitalism :Knowledge is the current key Marx on Value

Use of Value Exchange of Value

Use Exchange of Commodities

Utility Exchange of Supplies

Consumption True Expression of Commodities

Knowledge is the essential ingredient for creating value in the global capitalism system.

Value and wealth derive from the process of creating, not making things (Potter, 1999).

This is the model of Dzinkowski (2000) to comprehend the creation of value.This is knowledge capital (human knowledge)when is transfer into structural capital (companies-structure capital).

Value-The life Blood of Capitalism :Knowledge is the current key Value creation through Knowledge

Human Capital

Organizational Capital

Costumer Capital

Intellectual

Capital

As the industrialized world today enters into a knowledge revolution, value is now being created from knowledge. The knowledge revolution is the latest phase of capitalism, which life system is value.

A series of concerns come into consideration: What are the consequences if knowledge relative concepts are not

carefully examined? In this revolution of knowledge , today, the extraction of knowledge is

one of the main focus, What will be the next phase of extraction… emotion, convictions, belief, or imagination?

Rikowski (2000) believes that hopes lies in bringing about a new form of capitalism, one that will start a different world; a kinder, better, fairer world; a world beyond.

Value-The life Blood of Capitalism :Knowledge is the current key Value is the Life-Blood of Capitalism

Conclusion / Questions

Let us look towards the future, a social-future, certainly, and ultimately, in the direction of a global common society, that is based on human need and self-expression! (Rikowski,2001)

Thank you for your time!!!!

Value-The life Blood of Capitalism :Knowledge is the current key Value is the Life-Blood of Capitalism

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