Marc Luyckx Ghisi CBA Dean 1 SAP University Initiative, May 29 WHAT IS THE « KNOWLEDGE SOCIETY »? Marc LUYCKX GHISI, PhD, Dean CBA Business School Zagreb, Brussels

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean2 P. Drucker: Transformation Every few hundred years in Western History there occurs a sharp transformation. Within a few short decades, society rearranges itself : its worldview (paradigm), its basic values, its social and political structures, its arts, its key institutions. Fifty years later there is a new world.” Peter DRUCKER: “Post Capitalist Society”. Butterworth Heinemann, 1993, 2001, p.1.

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean3 DEFINITIONS Data: what is on the web, unorganised Data: what is on the web, unorganised Information: is already sorted by a search engine. Too much info.! Information: is already sorted by a search engine. Too much info.! Knowledge: is digested by human brain. Knowledge: is digested by human brain. Wisdom: Knowledge useful for the future of Humanity. Scarcity of wisdom! Wisdom: Knowledge useful for the future of Humanity. Scarcity of wisdom!

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean4 DEFINITIONS (I) Every society spreads knowledge. This is the role of education and research. Every society spreads knowledge. This is the role of education and research. The “Knowledge society” is a society “where knowledge applied to knowledge becomes the new value creation process” The “Knowledge society” is a society “where knowledge applied to knowledge becomes the new value creation process”

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean5 FROM CAPITALISM to KNOWLEDGE INDUSTRIAL Society INDUSTRIAL Society Capital + Technology Capital + Technology Value creat: objects Value creat: objects Tool = Machine Tool = Machine Free TradeWin-Loose Free TradeWin-Loose Progress= more, big. Progress= more, big. Measur: finance, tang Measur: finance, tang Exclusion Exclusion KNOWLEDGE SOC. KNOWLEDGE SOC. Knowledge/Knowledg Knowledge/Knowledg Value creat: know/K Value creat: know/K Human brain +netw. Human brain +netw. Free Share: Win-win Free Share: Win-win Progress = quality Progress = quality Measur: Intangibles Measur: Intangibles Inclusion Inclusion

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean6 NEW VALUE CREATION PROCES INDUSTRIAL SOC. INDUSTRIAL SOC. Add value to object Add value to object From steel to car ! From steel to car ! Tool is Machine Tool is Machine Humans are cost Humans are cost Management is machine-centered Management is machine-centered Machine is central Machine is central KNOWLEDGE SOC. KNOWLEDGE SOC. Create new K Create new K From data, info to K From data, info to K Tool Human brain in Networks Tool Human brain in Networks Humans are capital Humans are capital Management is Human-centered Management is Human-centered Machine is at service Machine is at service

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean7 BEYOND TRADE (I) If I exchange an object against money, I loose the object. This is “trade”: I win and I loose. “Win-Loose” logic If I exchange an object against money, I loose the object. This is “trade”: I win and I loose. “Win-Loose” logic If I exchange knowledge, I do not loose my knowledge. I win and you win. I am not trading anymore. I share. This is a “win-win logic” of sharing. If I exchange knowledge, I do not loose my knowledge. I win and you win. I am not trading anymore. I share. This is a “win-win logic” of sharing.

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean8 BEYOND TRADE (II) INDUSTRIAL SOC. INDUSTRIAL SOC. Free trade of objects Free trade of objects Industrial structure Industrial structure Pyramids Pyramids Unemployment Unemployment Pollution Pollution Quantitative growth Quantitative growth KNOWLEDGE SOC. KNOWLEDGE SOC. Free sharing of knowl. Free sharing of knowl. Post-industrial-capitalist. Post-industrial-capitalist. Network =value creation Network =value creation Self-creation of my job Self-creation of my job Immetrialization of prod. Immetrialization of prod. Qualitaitve growth Qualitaitve growth

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean9 ANOTHER ECONOMY(I)  Quality of knowledge is more important than quantity.  Progress becomes more qualitative than quantitative.  Measurements are more qualitative: “Intangible” value are increasing

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean10 ANOTHER ECONOMY (II) Secrecy and patenting are in crisis Secrecy and patenting are in crisis From “Win-Loose” to “Win-Win” From “Win-Loose” to “Win-Win” From “exclusion” to “inclusion” From “exclusion” to “inclusion” From Logic of war to logic of love ! From Logic of war to logic of love ! From “command and control” to “enabling creativity and sharing” From “command and control” to “enabling creativity and sharing”

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean11 ANOTHER MANAGEMENT Human capital is central because it is caring for the new tool of production Human capital is central because it is caring for the new tool of production « Please come back tomorrow morning»! « Please come back tomorrow morning»! Thus Management : shifts 180° towards human centeredness = more creativity- centred, gender & culture – centred. Thus Management : shifts 180° towards human centeredness = more creativity- centred, gender & culture – centred.

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean12 ANOTHER SYSTEM OF MEASUREMENTS « Intangible assets » is a new concept invented by Karl Erik SVEIBY (Sweden) « Intangible assets » is a new concept invented by Karl Erik SVEIBY (Sweden) They are becoming more and more important in the knowledge society They are becoming more and more important in the knowledge society Because the knowledge society is about knowledge which is immaterial, intangible and qualitative. Because the knowledge society is about knowledge which is immaterial, intangible and qualitative.

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean13 A NEW CONCEPT : INTANGIBLE ASSETS (I) Intangibles assets = Intangibles assets = –Know how, –Reputation, –Trust in the company, –Structure of the company, –Strategy (balanced scorecards) –Relations with personnel, –Relations with clients,

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean14 A NEW CONCEPT : INTANGIBLE ASSETS (II) Relation with civil society Relation with civil society Relation to environment Relation to environment Relation to our collective Future and sustainability Relation to our collective Future and sustainability But also quality of the Networks But also quality of the Networks

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean15 2 NEW TOOLS OF PRODUCTION  1st Tool of production =Human brain : Knowledge is produced by human brain which digests data and information and creates knowledge.  2 d tool of production =Networks : Knowledge is increased only by sharing in a network. This is an inclusive logic. (love).

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean16 GROWING IMPORTANCE OF INTANGIBLE ASSETS

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean17 NEW DANGERS AND FIGHTS INDUSTR CAPITALI. INDUSTR CAPITALI. Danger: appropriation of created value Danger: appropriation of created value Quantity of money Quantity of money Left defends the worker. Left defends the worker. Right defends the entrepreneur Right defends the entrepreneur KNOWLEDGE SOC. KNOWLEDGE SOC. Danger: manipulation of knowledge wisdom, ethics, & human brain Danger: manipulation of knowledge wisdom, ethics, & human brain Quality of truth Quality of truth New Left defends against manipulation of deepest human values…Ready ??? New Left defends against manipulation of deepest human values…Ready ???

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean18 NEW ROLE FOR UNIVERSITIES Explain that we are in a completely new context. With a lot of positive sides and potentialities, jobs,.. Explain that we are in a completely new context. With a lot of positive sides and potentialities, jobs,.. HOWEVER: it is also urgent to warn and prepare the young public about the new subtle dangers of manipulation of all kinds. HOWEVER: it is also urgent to warn and prepare the young public about the new subtle dangers of manipulation of all kinds.

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean19 CONCLUSION NEW VALUES… Underlying values needed in the industrial capitalist society are freedom, initiative, ceativity… Underlying values needed in the industrial capitalist society are freedom, initiative, ceativity… NEW Values are needed: NEW Values are needed: –Freedom (of sharing) –Solidarity, Caring, Respect –Transparency –Concern for the Common Good –Ethics

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean20 Some good Books… Peter DRUCKER: “Post capitalist society”, Harper Business, New York, Peter DRUCKER: “Post capitalist society”, Harper Business, New York, Verna ALLEE: “The future of knowledge” Elsevier Science, 2003, USA. Verna ALLEE: “The future of knowledge” Elsevier Science, 2003, USA. Rob CROSS: “Networks in the Knowledge economy” Rob CROSS: “Networks in the Knowledge economy” LEIBOLD and al. : “Strategic Management in the Knwoledge economy” LEIBOLD and al. : “Strategic Management in the Knwoledge economy” David ROONEY (Australia): “Handbook on the Knowledge economy” David ROONEY (Australia): “Handbook on the Knowledge economy” 2005.

SAP University Initiative, May 29Marc Luyckx Ghisi CBA Dean21 Good Books (II) Jeremy RIFKIN: “The European Dream: when Europe’s vision of the future is silently eclipsing the American dream” Penguin Jeremy RIFKIN: “The European Dream: when Europe’s vision of the future is silently eclipsing the American dream” Penguin Ray ANDERSON: “Mid Course correction” (Interface) Ray ANDERSON: “Mid Course correction” (Interface) World Business Academy: World Business Academy: “Neskey” on intangible measurements : “Neskey” on intangible measurements :