The Hindu Business Line : It's time for `knowledgement'

MANAGEMENT is not enough, unless it manages knowledge too, so much so it may not be long before we start talking about `knowledgement', as a new science. There's this `K' everywhere, but Ian Chaston focuses on one important function of enterprises in his book Knowledge-Based Marketing, from Response Books (www.indiasage.com) .

As taught in school, IT staff glibly talk about the difference between `data' as something raw, and `information' as processed data that adds value. But the author pushes data and info to one side, and looks at knowledge as the other major contributor to productivity.

Knowledge resides within the organisation, either located in the minds of the employees or codified and stored in an organisational repository such as a company policy manual, he explains. "Information can be considered as a component part, but not the whole, of knowledge." How so? Because knowledge is also dependent upon "the commitment and understanding of the individuals holding such beliefs." It has a perspective and influences actions; it is "usually context-specific".

In the discussion of e-commerce technology, the book cites a segmentation model proposed by R. Lord for the UK audience with 7 types: Cybermum, the middle-aged woman with teenage children, and working in a caring profession; "she enjoys using e-mail", yet reads magazines.

Gameboy, the teenager living at home, accessing the Net everywhere, and hooked onto online games. Cyberlad, the twenties single, Net-ty with interests in girls and sport. Hit `n' runner, the middle aged with a successful career; he accesses the Net at work, but doesn't view it "as a source of entertainment". Cybersec, the senior secretary who is computer-literate; she uses the Net at work and for purchases.

Infojunky, the middle-aged, married, and with children, and "spending probably an excessive amount of time searching out new sources of information". Net sophisticate, the late twenties guy "verging upon being a techie and probably still lives at home".

E-business impacts the organisation's knowledge platform, points out Chaston. "Once buyers and sellers become electronically linked with each other, the volume of data interchange dramatically increases as trading activities begin to occur in real time." The knowledge platform that your company has must be capable of handling newer forms of knowledge exchange, instantly.

Don't miss this unless you want to miss out on knowledge.

Flying geese can leave you with bleeding edge

A FEW weeks ago, the West Bengal Chief Minister spoke about a 120 per cent growth in the IT sector, and also how the State was gearing up to take advantage of the recently-signed Free Trade Agreement (FTA) between India and Thailand. So, when another WB, that is, World Bank (www.worldbank.org) , discusses in a new publication how the use of information and communications technology (ICT) in Thailand has accelerated "effective integration" of value chains, there is something of immediate interest. The book, Global Production Networking and Technological Change in East Asia, edited by Shahid Yusuf, M. Anjum Altaf and Kaoru Nabeshima, observes: "New ICTs enable lead firms to ask much more of established suppliers in terms of rapid response, design collaboration, lower costs, and close monitoring." Leading Thai firms exert pressure on their suppliers to adopt the latest IT tools - "to improve quality, facilitate tracking of in-process inventory, and streamline order and reorder process".

Elsewhere, the book refers to the `flying geese' strategy of Japanese firms - where older, less profitable developed suppliers are allowed to migrate to their developing neighbours. They groom suppliers in East Asia "for inputs that are becoming commodities or are subject to great demand volatility." What happens in countries at the receiving end of flying geese? Low profitability due to technological gap of many generations behind the leading edge. "Countries that have relied on this strategy for development find themselves on the `bleeding edge' of many markets, stuck in low-profit and volatile sectors". Examples are low-cost PCs, monitors, scanners, power suppliers, batteries, keyboards, DRAMs, apart from "mass market apparel and footwear products".

In the meantime, leading edge players are busy with "high-end computers and servers, communications equipment, software, logic semiconductors, and high-fashion apparel and footwear."

Returning to Thailand discussion, Web-EDI systems are used for the traffic of data shared between automobile assemblers and suppliers, in the area of design and development, and at the mass production stage. Efforts are on to increase bandwidth because of "the advent of design-in approach".

But there's a paradox: "Despite the improvement of ICT networks in Thailand, it will be difficult for suppliers to reduce their inventories of parts and raw materials." Reason? Because stocks are maintained to guard against production equipment failures, and "Thailand does not have sufficient people with the skills needed to repair production facilities."

Useful read for those who want to help our manufacturing reap the benefit of networking.

Tailpiece

"I say a happy systems guy... "

"Sounds anachronistic."

"But this one was quitting!"

Books2Byte@TheHindu.co.in

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