What Consitutes the Knowledge Asset?
It is very strange, yet true, that the techniques that help to measure and manage a business firm’s most important resources are not few but several years behind; in terms of development. Management of information as an asset and a resource, is still in its nascent stage. But at least, information is beginning to be considered an asset in today’s business scenario. But how many businesses treat knowledge as an asset. Firstly, let us understand, what constitutes the knowledge asset. Knowledge, unlike information is less tangible. It depends solely upon the understanding and cognition of individuals and their awareness. Measurement of the knowledge asset involves putting a value on people, both as individuals and also as a group. Measuring of knowledge asset also entails many other factors, such as embedded intelligence and all this needs to be put into the organization’s computer systems in a knowledge database. However, just a creation of database is not going to be of any help. What is required is a leveraging of this knowledge and adding value to it, through its development. Only then can it be converted into a useful asset of business, when it can be transmitted into goods and services, that people pay for.
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