A key to success in a global knowledge economy
Knowledge is the key to success. Organisations have to appreciate the competitive advantage of knowledge. Knowledge acquired has to be spread across the organisation to enable others to leverage on the same. Communities of practice in strategic areas are the best way to promote knowledge as an asset as they help greatly in the proliferation of knowledge. In knowledge economy, there is explosive development in knowledge which makes it difficult for the organisations to spread knowledge. Increased complexity of knowledge needs greater specialisation and also collaboration. With half-life (the short time by which the present knowledge becomes obsolete) of knowledge getting shorter, it is tough for organisations to keep pace with the rapid changes and manage knowledge without these communities. An organisational change could be due to internal and external factors and there would be a huge onus to respond to the demands of shifting the market. This could cause restructuring. Communities of practice are the best solution to make the organisation embrace change and make it adaptable. They help to connect people from different organisations that enable to share experiences of change and understanding the core knowledge requirements.
The knowledge economy poses an additional challenge. The knowledge markets are globalising quickly. Communities of practice help organisations to compete globally through information sharing across the globe. Apart from contributing to the success of the organisations in the world markets, the communities have other benefits. The advantage which the company will enjoy is the influx of innovative ideas which brings about excellence in the field of application, thereby solving an instant stream of the competitive problems. In globalised knowledge economy, the companies don't just compete for the market share but also compete for the talented people who have the expertise and the capabilities to generate and also implement the creative ideas. Finding and keeping the right people can also make a difference in the company's ability to become a market leader and also gain access to the venture capital. In fact, the knowledge driven markets make it essential to develop the knowledge strategy along with the business strategy. A knowledge strategy details, in the operational terms, the way to develop and apply the capabilities needed for executing the business strategy.