Intellectual Capital KM743 Session 1 introduction Knowledge-Based Society . . Asst.Prof. DR. Pitipong Yodmongkol College of Arts Media and Technology, Chiang Mai University Knowledge-based Economy Knowledge-based Society World capital milestone Lim and Dallimore, 2002 Old Economy: Factors of Production Man Money Machine Material The Old Economy Old Economy Factors of Production / Land + Labor + Machine + Money Law of Diminishing Return The more any given resource is used, the smaller is the increment return New Economy 21 st century Information and knowledge are the thermonuclear competitive weapons of our time News, information, communication, service => economys primary raw materials. Knowledge is what you buy and sell Knowledge is more valuable and more powerful than natural resources, big factory, or bankrolls Stewart (1997). The New Economy New Economy Factors of Production => Knowledge Law of Increasing Return The more any given knowledge is used, the more is the increment return Knowledge Used Profits Old Economic Law VS New Economic Law Value Time/Used Knowledge-based Economy Character Knowledge replaces Labor & Capital Glowing knowledge content of products & services Important of services industry Different economic laws Changing notion of ownership Knowledge worker owns assets in their heads Changing nature of labor Knowledge & Services Changing nature of Organizations Knowledge intensive, net work Knowledge-based Economy Market Organization Knowledge-based Economy The twentieth-first century knowledge-baesd economy stands on three characters (Steward, 2001). 1.knowledge has become the most important factor of production. 2.knowledge assets have become more important than physical and financial assets for an organization. (Stewart, 1997 & Roos, Roos, Dragonetti&Edvinsson, 1997). 3.an organization needs new management approaches, new strategies, and new technologies to prosper in this knowledge economy. Knowledge-based Society An innovative and life-long society Knowledge can be collected, distributed, applied, used and protected Easy access to information by using IT equipment The 3 main characteristics of the knowledge workers Those who own valuable knowledge for the organization they work for Those who know how to make knowledge productive Those who are self-motivated Stam, 2007