Heads
Land & Resources
Sources of Wealth:
Knowledge Era
Capital: Money & Machines
Labor
Hands
Knowledge
Heads
Land & Resources
Sources of Wealth:
Capital: Money & Machines
Knowledge Turns (2)
Finding Faults
0.1 0.5
Trust
Finding Strengths
1 5 10
Distrust
=5 = 10
= 0.5
Individuals:
=
Suppliers/ Partners:
=
Functions/
Departments:
=
Customers:
Others are always looking for my weaknesses
My intellect & emotions are not valued
Relationships are not important
Knowledge Era: “Production” through Dialogue
Personal Competence
Human Capital
Obligation Karl-Erik Sveiby
IC Framework at Skandia
Financial Focus
Customer Focus
Human Focus
Process Focus
Renewal & Development Focus
Supply Chain
Supplier
Company
Customer
Supply Chain - extended
Supplier
Company
Customers
Customers’ Customers
Customers’ Needs and Aspirations
Problems & Needs
End Users
Study
Uncertain Future
Skandia Wholesale
Annuities
Sell
Brokers
Annuitie
Funds Managers
Skandia AFS
Working the Whole System
Human Capital
Pace of Change
Stable
Dynamic
Knowledge Requirements
Complex
Simple
Your Company in 2001?
Nolan & Norton, 1988
“X“ +/—
Industrial Era
Systemic (Context Giving)
Knowledge Turns =
Ability to Build Upon other’s Capabilities* Level of Distrust
*Other’s Capabilities = Individuals, Functions, Lines of Business (LOBs), Suppliers, Customers and Customers’ Customers
Values (trust) are key I must discover others’ capabilities & aspirations to build upon We excel in teaming our competencies to seize opportunities Learning enhances earnings
Agricultural Era
Capital: Money & Machines
Labor
Hands
Knowledge
Heads
Land & Resources
Sources of Wealth:
Industrial Era
Capital: Money & Machines
Labor
Hands
Knowledge
Knowledge Era Industrial Era Agricultural Era
Knowledge Era
With One Another
“X”
Industrial Era
Employer-Employee Concept “+/—”
Agricultural Era
Master Servant Relationship
Transforming Knowledge:
The 21 Century Wealth Driver
“Shaping our Future …”
Cable & Wireless Optus
Melbourne, October 28, 1999
Dr. Charles M. Savage
Knowledge Era Enterprises, Inc.
1.5 Million
End Users
Skandia
2400
84
Funds Managers
85,000
Brokers
Knowledge Era Enterprising and Dynamic Teaming
Capabilities Aspirations
Customers’ Customers
100 90 80 70 60 50 40 30 20 10 0
I ndividual Function LO B Supplier Customer C of C Possible
Industrial Era: Conceptual Confinement
Help!!
I find little trust in the organization
Industrial Era Agricultural Era
Adam Smith James Watt
Henri Fayol Frederick W. Taylor
Industrial Era Agricultural Era
Industrial Era
A
B
Agricultural Era
C Culture of Mistrust Culture of Devaluing
Customers
Finance
SWOT
Division & Subdivsion of Labor
Operational
Processes
Imaginative
Follow Instructions
Distrust & Devaluing
Learning
Aspirations
Company
Capabilities
“x”
Aspirations
Customer Capabilities s
Capabilities Aspirations Suppliers/ Partners
Evolving Business Model
Structural Capital
Labor
Hands
Knowledge
Heads
Land & Resources
Sources of Wealth:
Capital: Money & Machines
Economy of Scarcity
Economy of Abundance
Labor
Hands
Knowledge
Heads
Land & Resources
=
Lines of
Business:
=
Customers’
Customers:
=
Knowledge Turns: Results
8 7 6 5 4 3 2 1 0
I ndividual Function LO B Supplier Customer C of C
Knowledge Turns: Results
Known split of profits from the trip
Knowledge & Energy
• • •
Aspirations Capabilities
• • •
Person A
• • •
Aspirations Capabilities
• • •
Person B
Sources of Wealth:
Innovating with our customers!
Finance
What investments in our customers bring them excellent results?
Knowledge Turns
Inventory Turns =
Cost of Goods Sold for Year Average Inventory for Year
Partnering
Dynamic Teaming, Virtual Enterprising & Knowledge Networking
Business Solutions
Mass Customization
Product Solutions