Knowledge is Power in Business

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Thursday, April 28, 2011

Sixteenth-century philosopher Sir Francis Bacon is credited with coining the phrase "knowledge is power". I enthusiastically support his viewpoint, as I believe that the pursuit of knowledge is an important means of personal development. However, acquiring knowledge by itself is not sufficient; the key to real growth is applying what you have learnt to improve your life.

Searching for new ideas may sometimes be likened to opening the mythical Pandora's Box. Like the ancient tale, exercising a natural curiosity to find the unknown could result in the discovery of truths that would have been better left hidden, and may even bring danger in some instances. Knowledge-seeking Sir Francis met an untimely demise from pneumonia, after doing an impromptu experiment to determine if snow could preserve meat.

Many people think that learning can only be gained in school, but knowledge can actually be obtained from a variety of sources. You can find information through reading books, attending seminars, browsing the Internet and being mentored by persons with experience. Once you have the desire to learn, even seemingly trivial events can lead you to greater understanding.

Although I am a university graduate, I'll confess that sometimes the intellectual discourses that come out of many institutions of higher learning leave me slightly bewildered, as I struggle to comprehend their abstract and complex discussions. It seems to me that the art of speaking simply gets less relevant the higher you climb on the educational ladder.

My aversion to highly academic lectures initially caused me to be a little undecided about attending a recent conference that was entitled 'Strategies for Enhancing Jamaican Competitiveness in the Global Knowledge Economy,' which was organised by the Knowledge Society Foundation and Spatial Innovision Limited.

With an impressive array of local and international professors slated to speak at this event, I wondered if I would really be able to appreciate any of the presentations that would be forthcoming. However, my desire to find out exactly what connection knowledge had with the world of business, compelled me to venture forth in search of new financial insights.

What does knowledge have to do with business?

Dr Dawn Elliott, Associate Professor in Economics at Texas Christian University, revealed that knowledge can actually be viewed as a commodity, just like a physical product or tangible service. Elliott referred to the work of economist Fritz Machlup, who is renowned for examining knowledge as an economic resource, and popularising the concept of the Information Age.

Machlup stated that knowledge is "anything that is known by somebody", and consists of both its production and distribution. Machlup contended that producing knowledge entailed "not only discovering, inventing, designing, implementing, but also disseminating and communicating" what is known, scientific and otherwise.

Elliott explained that Machlup's concepts are important in understanding competitiveness in business. Companies can increase their ability to compete effectively, locally and globally, by having greater access to knowledge, making efficient use of this knowledge, and creating new ideas from an existing stock of knowledge.

Giving an example of a company using a stock of knowledge to enhance its competitiveness, Elliott looked at the case of the Toilet Wand product. Using existing information about how a regular toilet brush worked, Clorox used innovation to design a tool that would not only more effectively clean the toilet bowl, but dispose of the germ-filled instrument with little mess.

Another presenter, Prof Carl Dahlman of Georgetown University, further clarified that a knowledge economy is one in which the "generation and exploitation of knowledge play the main role in growth and development." A knowledge society, he confirmed, values and supports the creation, dissemination and effective use of knowledge.

Dahlman asserted that we have to focus more attention on keeping up with changing technological advances, making effective use of information systems to reduce transaction costs, and developing the skills and flexibility of our labour force and management. A key factor in attaining these goals is improving access to education along with its quality and relevance.

Making money from what you know

It is important for Jamaicans to foster a knowledge society if we are going to be competitive globally. We need to harness our knowledge in fields like herbal medicine, sports, and music among others; then package and market this knowledge in innovative ways to earn money. I believe that this will be a major solution to our personal and national economic problems.

I have actually been an active participant in a knowledge-based economy before I even knew what this was. Over the years, as I learned about financial success, I realised that other people wanted to know what I had discovered. I have subsequently been able to profit from presenting my knowledge in articles, workshops, coaching sessions, CDs and other forms of information.

I usually encourage people with expert knowledge to share it with others instead of keeping it to themselves. If you know something that has value to others, make an effort to learn how you can earn from it!

"Knowledge is power. Information is liberating. Education is the premise of progress, in every society." - Kofi Annan

Cherryl is a financial consultant, money coach and founder of Financially S.M.A.R.T. Services. Her first book, "The 3 Ms of Money" will reveal all the secrets she learned about financial success. Please email comments to cherryl@financiallysmartonline.com. Get more practical money advice at www.financiallysmartadvice.com and free tools at www.financiallysmartonline.com.

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Knowledge is Power in Business