Knowledge Economy whiteboard animation

The Myth that is the Knowledge Economy. Many, including myself, argue that we're living in a knowledge economy. But we're not. At least: not yet. Knowledge has always been a key component in any successful and sustainable business model: the experience in growing crops or raising cattle, the science and skills in drilling for oil or mining ore, the creativity in designing consumer products or adverts aimed at specific market segments. But today perhaps more than ever before, knowledge can be the sole driver of a business activity: the likes of Amazon, Google, Facebook don't manufacture anything; they turn information about their users into valuable knowledge for marketeers and advertisers. Yet at the same time they generate a lot of value to hundreds of millions of their users, which they simply give away for free. Why? Because it is simply impossible to determine the market price of "one search" or "one post". Let's explore this in more detail. "Knowledge, like beauty, is in the eye of the beholder" - which means that the value of knowledge can only be determined in light of the context in which it is to be used. So, what is interesting but otherwise useless to you right now, could become extremely relevant - and therefore valuable - tomorrow, or next week, or next year! It all depends on your context. As a consequence the value of knowledge cannot be determined at the time it is acquired but only as and when it is used - every time it is used, in whichever context. And therefore you should only have to pay for it at the time of use, not at the time of acquisition. But our current market mechanisms don't work like that. We're not used to that. Except perhaps in the music and entertainment industry: musicians earn royalties, that are paid to and collected by Performance Rights Organisations, based on the actual playlists of radio stations and events. Consider how this could work in the world of consulting or training, both knowledge-based businesses by excellence: Currently they sell knowledge (in the form of advice or presentations and exercises) but only charge for the TIME spent in sharing that knowledge. While they may charge different hourly rates, this still has no direct bearing on the value of what their clients will do with the advice or knowledge. Nor do these clients have the possibility to resell or indeed return what they bought in case it does not meet their purpose. "Sorry, no refunds !" What should happen instead, is that consultants and trainers not only sell their time - indeed a scarce resource - but also, and separately, their knowledge. Watch this space ... A project is currently under way, supported by the European Commission's Horizon 2020 programme, to create a market for knowledge, where knowledge is shared under Creative Commons Licence, and paid for as and when it is used: a fair payment in proportion to the value it creates for the buyers. Want to know more? Contact me on philippe.leliaert@knowliah.com.