Friday, April 20, 2018

LL6: Managing Structural Capital: The Dynamics of Knowledge


LL6: Managing Structural Capital: The Dynamics of Knowledge

In today’s economy, innovation is considered to be one of the main driving forces behind business competitiveness. Superior innovation provides companies with the opportunities to grow faster, better, and smarter than their competitors, and ultimately, to influence the direction taken by their industry.

Establishing and maintaining relationships are costly processes that should be considered as investments. Consequently, relationships and the uses to which they can be put should be seen as part of the stock of capital of the firm. In fact, relationships can be seen as part of the firm’s intellectual capital.

As I see it, structural capital allows for organizational effectiveness improvement through the transmission of knowledge.

For organizations mostly, changes are faster than their speed in responsibility and the ability for adjustment. In this space, organizations face with opportunities and threats. Therefore each invention and innovation causes change that may create opportunity for organization. So having proper structural capital is very important. Organizations should develop their new products and share clear vision in order to improve the effectiveness of their new product development performance.

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