Marc Luyckx Ghisi CBA Dean 1 SAP University Initiative, May 29 WHAT IS THE « KNOWLEDGE SOCIETY »? Marc LUYCKX GHISI, PhD, Dean CBA Business School Zagreb,

Marc Luyckx Ghisi CBA DeanMarc Luyckx Ghisi CBA Dean 11SAP University Initiative, SAP University Initiative, May 29May 29

WHAT IS THE WHAT IS THE « KNOWLEDGE SOCIETY »?« KNOWLEDGE SOCIETY »?

Marc LUYCKX GHISIMarc LUYCKX GHISI, PhD,, PhD,Dean Dean CBA Business SchoolCBA Business School

ZZagreb, agreb, Brussels Brussels [email protected]@scarlet.be

mailto:[email protected]

SAP University Initiative, SAP University Initiative, May 29May 29

Marc Luyckx Ghisi CBA DeanMarc Luyckx Ghisi CBA Dean 22

P. Drucker: TransformationP. Drucker: TransformationEvery few hundred years in Western History Every few hundred years in Western History

there occurs a sharp transformation. there occurs a sharp transformation. Within a few short decades, society rearranges Within a few short decades, society rearranges

itself : its worldview (paradigm), its basic itself : its worldview (paradigm), its basic values, its social and political structures, its values, its social and political structures, its arts, its key institutions. arts, its key institutions.

Fifty years later there is a new world.”Fifty years later there is a new world.”

Peter DRUCKER: Peter DRUCKER: “Post Capitalist Society”.“Post Capitalist Society”. Butterworth Heinemann, 1993, 2001, Butterworth Heinemann, 1993, 2001, p.1.p.1.



DEFINITIONSDEFINITIONS• Data:Data: what is on the web, unorganised what is on the web, unorganised• Information:Information: is already sorted by a is already sorted by a

search engine. Too much info.!search engine. Too much info.!• Knowledge:Knowledge: is digested by is digested by human brain. human brain. • Wisdom:Wisdom: Knowledge useful for the future Knowledge useful for the future

of Humanity. Scarcity of wisdom!of Humanity. Scarcity of wisdom!



DEFINITIONS (I)DEFINITIONS (I)• Every society spreads knowledge. Every society spreads knowledge.

This is the role of education and This is the role of education and research.research.

• The “Knowledge society” is a society The “Knowledge society” is a society ““where knowledge applied to where knowledge applied to knowledge becomes the new value knowledge becomes the new value creation process”creation process”



FROM CAPITALISM to FROM CAPITALISM to KNOWLEDGEKNOWLEDGE• INDUSTRIAL SocietyINDUSTRIAL Society• Capital + TechnologyCapital + Technology• Value creat: objectsValue creat: objects• Tool = MachineTool = Machine• Free TradeWin-LooseFree TradeWin-Loose• Progress= more, big.Progress= more, big.• Measur: finance, tangMeasur: finance, tang• ExclusionExclusion

• KNOWLEDGE SOC.KNOWLEDGE SOC.• Knowledge/KnowledgKnowledge/Knowledg• Value creat: know/KValue creat: know/K• Human brain +netw.Human brain +netw.• Free Share: Win-winFree Share: Win-win• Progress = qualityProgress = quality• Measur: IntangiblesMeasur: Intangibles• InclusionInclusion



NEW VALUE CREATION NEW VALUE CREATION PROCESPROCES• INDUSTRIAL SOC.INDUSTRIAL SOC.• Add value to objectAdd value to object• From steel to car !From steel to car !• Tool is MachineTool is Machine• Humans are costHumans are cost• Management is Management is

machine-centeredmachine-centered• Machine is centralMachine is central

• KNOWLEDGE SOC.KNOWLEDGE SOC.• Create new K Create new K • From data, info to KFrom data, info to K• Tool Human brain in Tool Human brain in

NetworksNetworks• Humans are capitalHumans are capital• Management is Management is

Human-centeredHuman-centered• Machine is at serviceMachine is at service



BEYOND TRADE (I)BEYOND TRADE (I)• If I exchange an object against money, I If I exchange an object against money, I

loose the object. This is “trade”: I win loose the object. This is “trade”: I win and I loose. “Win-Loose” logicand I loose. “Win-Loose” logic

• If I exchange knowledge, If I exchange knowledge, I do not loose I do not loose my knowledge. my knowledge. I win and you win. I am I win and you win. I am not trading anymore. I share. This is a not trading anymore. I share. This is a ““win-win logic” of sharing.win-win logic” of sharing.



BEYOND TRADE (II)BEYOND TRADE (II)• ININDUSTRIALDUSTRIAL SOC. SOC.• Free trade Free trade of objectsof objects• Industrial structureIndustrial structure• PyramidsPyramids• UnemploymentUnemployment• PollutionPollution• Quantitative growthQuantitative growth

• KNOWLEDGE SOC.KNOWLEDGE SOC.• Free sharing of knowl.Free sharing of knowl.• PoPost-industrialst-industrial--

capitalistcapitalist. . • Network =value Network =value

creationcreation• SSelf-creation of elf-creation of my my jobjob• Immetrialization of Immetrialization of

prod.prod.• Qualitaitve growthQualitaitve growth



ANOTHER ECONOMY(I)ANOTHER ECONOMY(I) QualityQuality of knowledge is more of knowledge is more

important than quantity. important than quantity. ProgressProgress becomes more becomes more qualitativequalitative

than quantitative.than quantitative. MMeasurementseasurements areare more more qualitativequalitative: :

““IntangibleIntangible”” value value are increasing are increasing



ANOTHER ECONOMY (ANOTHER ECONOMY (IIII))• Secrecy and patentingSecrecy and patenting are in crisis are in crisis• FFrom rom “W“Win-in-LLooseoose”” to to ““Win-WinWin-Win””• From From “e“exclusionxclusion”” to to ““inclusioninclusion”” • From From Logic of war to logic of love Logic of war to logic of love !!• From From ““command and controlcommand and control”” to to

““enabling creativity and sharingenabling creativity and sharing””



ANOTHER MANAGEMENTANOTHER MANAGEMENT• Human capital is central because it is Human capital is central because it is

caring for the caring for the new new tool of productiontool of production• « « Please come backPlease come back tomorrow tomorrow

morning»morning»! ! • Thus Thus Management : shifts 180° Management : shifts 180°

towards human centeredness = more towards human centeredness = more creativity-centred, gender & culture – creativity-centred, gender & culture – centred.centred.



ANOTHER SYSTEM OF ANOTHER SYSTEM OF MEASUREMENTSMEASUREMENTS• « Intangible assets » is a new concept « Intangible assets » is a new concept

invented by Karl Erik SVEIBY (Sweden)invented by Karl Erik SVEIBY (Sweden)• They are becoming more and more They are becoming more and more

important in the knowledge societyimportant in the knowledge society• BecauseBecause the knowledge society is about the knowledge society is about

knowledge which is knowledge which is immaterial, immaterial, intangible and qualitative.intangible and qualitative.



A NEW CONCEPT : A NEW CONCEPT : INTANGIBLE ASSETS (I)INTANGIBLE ASSETS (I)• Intangibles assets = Intangibles assets =

– Know how, Know how, – Reputation, Reputation, – Trust in the company, Trust in the company, – Structure of the company, Structure of the company, – Strategy (balanced scorecards)Strategy (balanced scorecards)– Relations with personnel, Relations with personnel, – Relations with clients,Relations with clients,



A NEW CONCEPT : A NEW CONCEPT : INTANGIBLE ASSETS (II)INTANGIBLE ASSETS (II)• Relation with civil societyRelation with civil society• Relation to environment Relation to environment • Relation to our collective Future and Relation to our collective Future and

sustainabilitysustainability• But also But also quality of the Networksquality of the Networks



22 NEW NEW TOOLTOOLSS OF PRODUCTION OF PRODUCTION

1st Tool of production1st Tool of production ==Human Human brain brain : : Knowledge is produced by Knowledge is produced by human brain which digests data and human brain which digests data and information and creates knowledge. information and creates knowledge.

2 d tool of production =Networks : 2 d tool of production =Networks : Knowledge is increased only by Knowledge is increased only by sharing in a network. sharing in a network. This is anThis is an inclusive inclusive logic. (love).logic. (love).



GROWING IMPORTANCE OF GROWING IMPORTANCE OF INTANGIBLE ASSETSINTANGIBLE ASSETS

0%10%20%30%40%50%60%70%80%

1980 2006 2010 2020

Tangible Intangible



NEW DANGERS AND FIGHTSNEW DANGERS AND FIGHTS• INDUSTR CAPITALI.INDUSTR CAPITALI.• Danger: Danger:

appropriation of appropriation of created valuecreated value

• Quantity of moneyQuantity of money• Left defends the Left defends the

worker. worker. • Right defends the Right defends the

entrepreneurentrepreneur

• KNOWLEDGE SOC.KNOWLEDGE SOC.• Danger: manipulation Danger: manipulation

of knowledge of knowledge wisdom, ethics, & wisdom, ethics, & human brain human brain

• Quality of truthQuality of truth• New Left defends New Left defends

against manipulation against manipulation of deepest human of deepest human values…Ready ???values…Ready ???



NEW ROLE FOR NEW ROLE FOR UNIVERSITIESUNIVERSITIES• Explain that we are in a completely Explain that we are in a completely

new context. With a lot of positive new context. With a lot of positive sides and potentialities, jobs,..sides and potentialities, jobs,..

• HOWEVER: it is also urgent to warn HOWEVER: it is also urgent to warn and prepare the young public about and prepare the young public about the new subtle dangers of the new subtle dangers of manipulation of all kinds.manipulation of all kinds.



CONCLUSION NEW CONCLUSION NEW VALUES…VALUES…• Underlying values needed in the industrial Underlying values needed in the industrial

capitalist society are freedom, initiative, capitalist society are freedom, initiative, ceativity…ceativity…

• NEW Values are needed: NEW Values are needed: – Freedom (of sharing)Freedom (of sharing)– Solidarity, Caring, RespectSolidarity, Caring, Respect– TransparencyTransparency– Concern for the Common GoodConcern for the Common Good– EthicsEthics



Some good Books…Some good Books…• Peter DRUCKER: “Peter DRUCKER: “Post capitalist societyPost capitalist society”, Harper ”, Harper

Business, New York, 1993.Business, New York, 1993.• Verna ALLEE: “Verna ALLEE: “The future of knowledge” The future of knowledge” Elsevier Elsevier

Science, 2003, USA.Science, 2003, USA.• Rob CROSS: Rob CROSS: “Networks in the Knowledge “Networks in the Knowledge

economy” economy” 2003.2003.• LEIBOLD and al. : LEIBOLD and al. : “Strategic Management in the “Strategic Management in the

Knwoledge economy” Knwoledge economy” 2002.2002.• David ROONEY (Australia): David ROONEY (Australia): “Handbook on the “Handbook on the

Knowledge economy”Knowledge economy” 2005. 2005.



Good Books (II)Good Books (II)• Jeremy RIFKIN: “Jeremy RIFKIN: “The European Dream: The European Dream:

when Europe’s vision of the future is when Europe’s vision of the future is silently eclipsing the American dream” silently eclipsing the American dream” Penguin 2004.Penguin 2004.

• Ray ANDERSON: “Ray ANDERSON: “Mid Course correctionMid Course correction” ” 1998. 1998. www.chelseagreen.comwww.chelseagreen.com (Interface) (Interface)

• World Business Academy: World Business Academy: www.worldbusiness.orgwww.worldbusiness.org

• ““Neskey” on intangible measurements : Neskey” on intangible measurements : www.neskey.comwww.neskey.com

http://www.chelseagreen.com/

http://www.worldbusiness.org/

http://www.neskey.com/

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Marc Luyckx Ghisi CBA Dean 1 SAP University Initiative, May 29 WHAT IS THE « KNOWLEDGE SOCIETY »? Marc LUYCKX GHISI, PhD, Dean CBA Business School Zagreb,