Wednesday, January 20, 2010

Knowledge flow vs Knowledge hoarding

Thomas Friedman lays it out:
John Hagel, the noted business writer and management consultant argues in his recently released “Shift Index” that we’re in the midst of “The Big Shift.” We are shifting from a world where the key source of strategic advantage was in protecting and extracting value from a given set of knowledge stocks — the sum total of what we know at any point in time, which is now depreciating at an accelerating pace — into a world in which the focus of value creation is effective participation in knowledge flows, which are constantly being renewed......

Have no doubt, China has some world-class networked companies that are “in the flow” already, such as Li & Fung, a $14 billion apparel company with a network of 10,000 specialized business partners, and Dachangjiang, the motorcycle maker. The flows occurring on a daily basis in the networks of these Chinese companies to do design, product innovation and supply-chain management and to pool the best global expertise “are unlike anything that U.S. companies have figured out,” said Hagel.
The orchestrators of these networks, he added, “encourage participants to gather among themselves in an ad hoc fashion to address unexpected performance challenges, learn from each other and pull in outsiders as they need them. More traditional companies driven by a desire to protect and exploit knowledge stocks carefully limit the partners they deal with.”