Question

Discuss aspects of how and why the organisation of business is changing in the digital knowledge economy era.

Answer 1

In today's era what is the biggest growth factor around the world and the nations who are leading in this front is knowledge economy combed with digital technology which is making it more powerful and useful for the economic growth and growth of businesses around the world.

Knowledge economy is based on human capital, innovation, ideas and spread of these ideas digitally through computers connected through internet and through network within an organization and now digital technology is making it possible to spread knowledge from one person to other through set standard procedures which are just a click away to access and to be used.

Now we are talking about tele-medicine, internet of things through which computers are interconnected though internet for to send and receive data and which means knowledge/expertise/information/technical information can be shared and this is the power of digital knowledge economy which can change lives and boost the growth of businesses, economy and how things can be done, Now it is not necessary to be there physically to attend any meeting but people around the world can connect through video-conferencing, Skype, etc. and can share the knowledge and organization can take decisions about their business plan, growth, expansion etc.

It is also be to be noted that there is a difference between knowledge and information, information is just the information which is exchangeable between different persons and entities but knowledge is something which can make a change when same is implemented and can be translated into business model.

So digitally available knowledge and its use and implementation is changing the system for how business is done now a days and how it is highly time saving, cost effective and very productive as well as can be transferred digitally through computer system connected through network/internet and how it is the biggest factor now a days then physical factors of production since knowledge is something which is the human innovation/techniques, knowhow and this can be followed by physical factors of productions for producing goods and services and same can generate yield with less input of resources which is making comparative advantage less relevant.