What's your knowledge ROI?
The Knowledge Value Chain® (KVC) is the result of an initiative to apply modern enterprise management techniques to "knowledge processes"—including market research, competitive intelligence, special libraries, and even R&D and legal research.
Known Unknowns
Knowledge is a core business process, one of hundreds that exist in complex organizations. However, knowledge as an economic resource is poorly understood, in contrast to the more tangible resources used in processes like manufacturing. The "science" of manufacturing has existed for about a century, and has been perfected during that time.
In contrast, the "science" of enterprise knowledge barely exists—though much of our economic competitiveness depends upon it. In fact, the late Peter Drucker said that, "The productivity of knowledge is the determining factor in the competitive position of a company, an industry, an entire country." Knowledge is far more than a "nice-to-have"—it's a must-have to compete effectively in the information economy.
Four Legs to Stand On
Four core principles support the KVC model:
- Evidence-based decisions are "better" than those that are not.
- "Better decisions" are better because they create greater enterprise value (as defined and measured by the organization).
- "Knowledge is power" is a myth. Knowledge and power must work together to create enterprise value.
- Knowledge processes are a type of business processes, and must be managed as such.
The KVC is a basic blueprint for the intelligence architecture of a value-creating process. As the "missing link" between information and strategy, KVC draws on Business Process Optimization techniques to increase the value added by intelligence processes.
OK, But So What?
What does this mean in practice? KVC is being applied in a range of contexts and situations. Some recent examples:
- A global information and media firm has integrated KVC metrics directly into a Six Sigma business process improvement program that includes their competitive intelligence function.
- A major pharmaceuticals company has used KVC to integrate the flow of product intelligence across sales and R&D teams.
- A global business services firm is using the KVC as a framework around which they are building an intelligence platform to support business development initiatives.
KVC can help you too! Please contact us, and we'll tell you how.
The Fine Print
The Knowledge Value Chain® is a proprietary business process model developed, owned, and deployed exclusively by The Knowledge Agency®, a business research, training, and consulting firm. Reg. U.S. Pat. & TM Off.
