Disclosing the economic value of knowledge. A functional paradigm.
During the 9th European Conference on Intellectual Capital in Lisbon in April 2017, Dr. Larry Lucardie gave a few scientific insights that initiates advanced thinking and a new generation of ICT.
The value of knowledge is not in line with its economic valuation. Due to how economic value is perceived in the industrial systems of the 19th and 20th century, corporate bookkeeping systems do not explicitly account for knowledge. In centrally guided systems economic value was linked with material commodities created by physical labour, whereas in capitalist countries the value of immaterial assets was denied by accountancy foundations. While industrial systems have transformed into knowledge economies, bookkeeping systems still rely on concepts of industrial economies.
Knowledge economies being complex systems and enterprises, as a consequence, struggle when processing service requests. Knowledge management activities are not targeted to mastering complexity, but instead are focused on representing it. Representation of knowledge is often human-based suffering from randomness and limiting scalability in time and space. IT approaches focus on representation of logic in legacy systems that are closed and rigid and not very adequate to convey and maintain knowledge. Enterprise logic is represented in text documents, calculation sheets, flow charts and similar techniques that do no justness to the characteristics of complexity.
So, our views of knowledge and knowledge management do not seem to be in a satisfactory shape and need revision. Old fashioned concepts underlying bookkeeping systems need to be synchronised with the knowledge economy. At the same time, the value of knowledge needs to be capitalised. The current accumulation of inefficiencies offers an expected but much needed and excellent opportunity to induce a paradigm change to accomplish this. The paradigm of functional object-types delivers a broader and deeper view of knowledge relating it to complexity. It provides a theory how to characterise and structure complex logic and render knowledge usable and adaptable for the transformation function of an enterprise. In addition to scientific advances, the first practical results reveal that the paradigm, including its Match™ Technology instruments, yields unprecedented achievements that are unthinkable with classical business improvement approaches. It showcases formidable time reductions in the transformation model, lower development and maintenance costs and higher quality of enterprise logic. Its 7th generation application-by-specification development is revolutionary short and elastic.