Business Enablers:

Knowledge-based Enterprise


The Value of Knowledge for Business

What Your Firm Knows to Create Value

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Vadim Kotelnikov



Knowledge Management Creativity Management Continuous Learning The Power of Simplicity Innovation - Bringing New Ideas to Life


  Work Smart and Hard


Knowledge Includes:

  • know-how of creating value

  • processes of how the firm works

  • best practices

  • customer intelligence

  • new business concepts

  • R&D

  • competitive intelligence

Balanced Organization

5 Basic Elements

Leadership  (Fire):


Serendipity as a Competitive Advantage

Serendipity helps you create unplanned and unintended, but remarkable innovative value by taking advantage of unanticipated, unexpected and unsought information and make accidental discoveries.

Develop serendipity as a corporate capability and leverage it to your competitive advantage in such as are as as:

Knowledge Defined

Knowledge is a set of understandings used by people to gain insights, work smarter, generate new ideas, make decisions, take actions that are important to the company and gain new knowledge.

As opposed to 'information', knowledge is defined by its use and its relevance to value creation. Knowledge and its management should be integrated into all building blocks of how your organization achieves its vision, creates corporate capabilities. manages creativity, ideas and innovation.

Knowledge as the Source of Business Value

"What enables the wise sovereign and the good general to strike and conquer, and achieve things beyond the reach of ordinary men, is foreknowledge."
~ Sun Tzu, '
The Art of War'

In the new economy, the knowledge component of products and services has increased dramatically in importance and has become the dominant component of customer value. The shift to knowledge as the primary source of value, makes the new economy led by the companies who manage knowledge effectively who create find, and combine knowledge into new products and services faster than their competitors. 

"Knowledge includes all the valuable concepts and vital know-how that shape a business to be wanted and needed by customers. Companies that are fast to market and demonstrated an ability to move with speed and sustain speed view time and knowledge as assets that are real money in the bank."4... More

The Power of Your Cross-Functional Excellence

If you build broad cross-functional expertise, no idea will be wasted! Your mind can accept only those ideas that have a frame of reference with your existing knowledge and comprehension. It rejects everything else. If your knowledge is functionally focused, you'll be open to new ideas related to your functional expertise only and will miss all other learning and innovation opportunities.

 If you develop a broad cross-functional expertise, no new idea will be wasted. It will immediately connect with the existing knowledge and will inspire you, energize you, and encourage your serendipity and  entrepreneurial creativity . The broader your net is, the more fish you catch... More

Explicit and Tacit Knowledge

All knowledge isn't the same. There is explicit knowledge the kind that can be easily written down (for example, patents, formulas, or an engineering schematic). The explicit knowledge can create Competitive Advantage , but its half-life is increasingly brief, as it can be replicated easily by others.

Tacit knowledge, or implicit knowledge, is far less tangible and is deeply embedded into an organization's operating practices and culture . "Tacit knowledge includes relationships, norms, values, and standard operating procedures. Because tacit knowledge is much harder to detail, copy, and distribute, it can be a sustainable source of competitive advantage.

What increasingly differentiates success  and failure is how well you locate, leverage, and blend available explicit knowledge with internally generated tacit knowledge."3

Inaccessible from explicit expositions, tacit knowledge is protected from competitors unless key individuals are hired away.

Tacit Knowledge as a Sources of Competitive Advantage

One source of Sustainable Competitive Advantage  is to diffuse throughout your company the unique, proprietary knowledge about Value Creation, Customers , Competitors, Product Development, and advanced ideation techniques that resides in the minds of your employees... More



  1. "The Centerless Corporation", Bruce A.Pasternack and Albert. J. Viscio

  2. "Smart Business", Dr. Jim Botkin

  3. "Relentless Growth", Christopher Meyer

  4. "It's not the BIG and eats the SMALL... it's the FAST that eats the SLOW", J. Jennings, L. Haughton

  5. "Productivity Improvement in the Service Sector," Mah Lok Abdullah, APO Newsletter

Knowledge-based Enterprise

5 Implications of Knowledge for Value    Tacit Knowledge

Knowledge Management

Continuous Learning

Quotes    One Way Many Paths

Creativity Management >> Kore 10 Tools

Idea Management  >> Ideation Process >> Quick Evaluation

Microsoft: Sharing Knowledge