Knowledge is the business fully as much as customer is the business. Physical goods or services are only the vehicle for the exchange of customer purchasing power against business knowledge”.
Above statement was made by Peter F. Drucker, a prominent Management and marketing guru.
Any economic result is the result of differentiation. What is that niche you posses that make you hot property in any market. It comes from knowledge. Knowledge is held by organization people. One day all labour can be automated by machines. But knowledge specifically is a human asset. If you have knowledgeable people you can target the sky. Books are more collection of information. Internet is one of the best medium for generating information on particular subject. But information is not a business.
Knowledge itself is not a business when used inside. When it do not produce value to the holder of knowledge, it is useless. It becomes business when applied outside of a business, to the customer, market and end-uses.
Mittal steel is king of steel market today. It posses a peculiar knowledge of converting non- performing public business and factory into highly profitable steel producing entity. It has done this numerous times Laxmi Mittal, Chairman and managing director, and his people do not change much in the plants. According to Aditya Mittal, CFO, and son of Laxmi Mittal, they apply their knowledge and past experience to turn thing around, Mittal steel turned their early acquisition around in 18 months. But now they have refined their knowledge and make any plant they capture profit producer within 6 months. That’s where I say business is knowledge and knowledge is business.
Looking at GE, they have an uncanny ability to mark a new opportunity and jump into it in a big way. GE is one of the leader and rare gem in America to dominate the whole 20th century. None have done that. They posses best of best talent in the market. But still there is no example of a business which they have acquired and which is the leader in its market. They messed up with RCA, and their finance acquisition. Yet they are king with GE capital, a blue eye child of GE.
So what make an organization successful in a specific area, while a distant runner in other area? Assets and money could be acquired but it is the knowledge which turns that asset into real business.
That why an old edge say. Give me 10 knowledgeable people and I will conquer the world.