GENERATION OF KNOWLEDGE AND ITS RELEVANCE TO BUSINESS SUCCESS

GENERATION OF KNOWLEDGE AND ITS RELEVANCE TO BUSINESS SUCCESS

 

A successful business is one that makes a bigger profit after understanding and meeting the needs of customers better than its competitors. This can be achieved only if there is:

(1)A quality product (better than competing products),

(2) A distinctive brand (market recognition and respect for the firm and its product), and

(3) effective marketing (demand creating situation).

In other words, these elements give a   business competitive advantage over its rivals. Even with these three elements coupled with raw material, special skill, funds, good  distribution network, appropriate production process and technology, may not enable the business firm sustain its competitive edge. Knowledge has become the  most   key resource for building durable competitive edge in the continuously evolving business environment. Hence, Knowledge is a crucial input for creating value.

 

In context with global business environment coupled with internet, customers have world-wide unlimited choice. Their fast changing taste and beheviour, the products have now shorter and shorter life cycles. It is a growing challenge for most businesses to provide newer, better, more attractive products that catch the eye and retain the interest of customers. The real challenge is to be more resourceful, creative and innovative than the competitors in all aspects of business from conceiving new ideas and transforming them into products, to marketing them in an efficient and cost-effective manner and earning a reasonable profit on the investment made.

 

Knowledge generates in the mind of human beings may be in the form of old ideas, frameworks, concepts, skill, memories, and so on and develops new ideas, concepts, principles, models, frameworks, guiding principles and skills. Expression of these ideas adds values to the products calling them new products. Sooner or later, this knowledge has to be shared with others. If there trust between owner and user,  then that may suffice. If they have contractual relationship, there might be loss or leakage of knowledge to the competitors. Still in another situation, the competitors might grab the knowledge accidently despite maintaining all secrets and safeguards of the same. In all said situations, a system comes in what is called Intellectual Property(IP).

Intellectual property (IP) is the outcome of human intellectual efforts which adds values to the products/services and makes them more marketable and acceptable amongst the customers. This intellectual  efforts once protected under prescribed laws, the business firm/entrepreneur enjoys the market share and maximizes the profits and productivity. Such laws come under Intellectual Property Rights(IPRs). Protection of new technologies, new products innovated, industrial designs, and registration of brand names images enable the business firms to grow and sustain in the economy.

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