“Knowledge Flows…Can it be the Next “Big One?”

I probably will be dating myself when I tell you I still cut out articles of interest from newspapers and magazines and file them away in manila folders. It must have something to do with the tangible nature of holding the desired information in one’s hands…part of the process of taking ownership of the information.

One such article that has been prominent in my thoughts was written by the New York Times columnist, Thomas L. Friedman, and was titled “Is China an Enron?” In the column, Mr. Friedman referenced a book called Shift Index by John Hagel. It is Mr. Hagel’s position that we’re in the midst of “The Big Shift” with the driving force propelling the shift being a concept called “knowledge flows”.

The stated premise is that we are shifting into a world in which the focus of value creation is effective participation in knowledge flows…a dynamic concept that is constantly being renewed. Mr. Hagel goes so far as to suggest, “That the future belongs to those who promote richer and ever more diverse knowledge flows and develop the institutions and practices required to harness them.” The orchestrators of these knowledge flows encourage participants to gather among themselves in an ad hoc fashion sharing information and experience…visualize this for a moment…utilizing whatever medium people from competitive businesses are “sharing” information.

Finding ways to connect with people and institutions possessing new knowledge becomes increasingly important says Mr. Hagel. China is cited as an example where companies are “in the flow” already. Knowledge flows are occurring on a daily basis in the networks of Chinese companies cooperatively engaged for example in design, product innovation, supply chain management and the pooling of global expertise. It is unlike anything that U.S. companies have figured out.

As a former academic who transitioned into the financial services industry eventually heading an industry association of investment banking firms, I can only convey to you that I see this as a radical new business trend that has the potential to significantly impact how business is conducted and information disseminated. Inherent within the “knowledge flow” concept is a disruptive characteristic that will work to further “democratize” all previous business models. The notion of “sharing” information among one’s peers in the business community in which you reside will create a seismic “shift” shaking the foundation of business practices in place for generations.

A project I have been working on in the global SME community is an ideal institutional platform for this revolutionary new business model. It is my intention to embrace and incorporate the knowledge flow model within its development and structure. I do not hesitate to say that this can be “The Big One” that ushers in a new era of global capitalism! The “ownership” of information may never be the same.

Be well.