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  • Liviu Cotora

KNOWLEDGE FLOW FROM ORIGINATION TO FINANCIAL MEASUREMENT

Knowledge is the wonder for the business value creation, the best return on investing, what is the investing value? is our tacit knowledge and our interest in what are we doing together with the immersive in a stimulant environment, just this, the result can be billions in money and recognition in sentiment around us.

Why so hard to believe? because the “Intangible Value Management “is wonder but unknown and “quite strange”.


The New Economic World, the New Enterprise Resources and Management Rules will be adapted to the “Intangible Economy”, this is not an option for our future life, community life, business life.

Discovering new Planets, Virus and Drugs, Energies and Food necessary for our normal future life, the Intangible Values Management will be “a must” to perfectly manage the innovation continuum flow of new products, services, technologies, materials, activities... The classic “Enterprise Resource Planning “IS DEAD like the Classic Accounting Rules are dead, why, because the Enterprise Resources are tremendous bigger numbers and variety with strong financial creation background and they don’t exist today in the ERP systems, this is why the market company value is so different from the financial accounts.

The cash treasury is not any more the company sustainability, but the Knowledge Flow to money yes, if is based on the Knowledge sustainable flow up to the free money generation flow. The new Enterprise resources are the flows of different Intangible and Tangible Values Flows more than the: tones of materials, number of bottles, number of sourcing orders and transport loading capacity. Certainly, we need all that to be counted. But the Enterprise Business Market Value and resilience is based on every minute created Knowledge Flow and the “Organizational Asset” plenty of: procedures, business rules, business process models, AI algorithms, mining engines, knowledge data bases operations automation programs, business simulation twin engines.

All of them configured like “Enterprise resources Flows “on the NEXT generation of ERP the “Company Resource Platform “where the knowledge related at each activity is: captured, circulated, converted in new “Organizational Asset” helping knowledge to generate “marginal financial value”. One of the conditions is the “Speed” of this cycle: capture-circulate- convert, so the interest is to have them done on the same “Company Resources Platform”. This Platform is a new generation computational environment composed by tens of thousands of “knowledge capture cell”.

The role of this “knowledge capture cell Platform “is the understanding, scrutiny of each Enterprise activity, Business process, business transaction, business interaction with business partners all stake holders and extract the “knowledge” how is done and why is done, the parties, and compare with the preceding times when knowledge was extract and fix if more competitive this time and rate them inside the knowledge experience. This is an internal “competitive knowledge filter” before we start circulating “the knowledge contribution”.

“Circulating” the most competitive knowledge contributions inside the Enterprise. “Integrated Operating Platform” is an important step in building “Competitive Business activities”. The qualification “competitive “is linked to the “sustainability basket composition” composed by each Company specifics key indicators, by regard to his Value Model, Business Environment, Social Governance, knowledge Organizational structure. And of course, the Company competitive advantage, the most important part of the Market Company Value and the company competitive advantage has not too much interaction with the Company ERP of course, static values are static performance. Business Value Flow is not a quantitative matter but a “magic formula “of Know-how, competence, making you the the best than all your others competitors. The” Fairy tales «was happened already by the best business in the world: Google, Amazon, Facebook, Apple, Airbnb and others tens of companies with more than hundred billion business operating on “operational platforms (not ERP) able to capture, circulate and distribute every operating second the partners Know-how using and building “competitive marginal business value”, so no way to catch them.

Because the traditional ERP business is based on collecting numbers, doesn’t matter when this was company value aggregating them by “every-body” known formula in the every -business financial reporting with thousands of headings that some one will chained them during a Board meeting and discover probably a business competitive problem coming from manufacturing, sales, or marketing, or inventory, or finance, customer invoice recovering, transport or sourcing...

The real question is what we need to solve the problem ? the answer is Know-How to do this operations better, and next question can we have this competitive know-how ?

If you BUILD your “Customized Operating Platform” with Knowledge capture and circulating flows the answer will be YES, we can Have the best knowledge customized to our competitive operations. The solution to the problem is not more quantities or money but “Know-How”.

This is the explanation why “TESLA” is the champion and most competitive car-maker and beat all the ERP classic hundred years old business car-makers RENAULT, VOKSWAGEN, BMW, MERCEDES-BENZ...

Amazon “Know-How “in Retail and distribution and the huge financial value came after he build his own Integrated Operating Platform and not because of his ERP out-of-the-box software. The ERP is just operational solution but not a competitive advantage engine or even less a sustainability solution. On the contrary the huge cost involved to transfer billions of numbers and aligned them on past business events crunching them on old fashion formulas is not the way to build competitive and resilient business. Tonnes of companies with ERP went bankrupt some times because of ERP, so build your customized business competitive engine and you solve also the business sustainability critter.

Knowledge management is the basis of business sustainability.

Knowledge in business is dedicated how to do better activities, better chained them in business process models, keep them real-time up-dated.

The best knowledge will be structured after we circulating the captured ones to the huge number of “Knowledge capture cells”. “Structuring and Filtering” the knowledge is a very important knowledge management operational asset. Compared with the Knowledge Capture operational asset the “Structuring and Filtering knowledge” asset contains the procedures, activities, knowledge and competence HOW to Filter the captured knowledge and keep only the parts helping the “Value Creation Process” in the Company, of course estimated by regard to the “marginal business value” specially oriented to the Company Market Financial Performance. The design and execution of this "enterprise value filtering system" is crucial for the impact of knowledge on the "operational performance of the enterprise" and on the financial competitive advantage of the enterprise is and an important part of estimating the financial market value of the business.

Once cleaned up the knowledge we structure this knowledge in Intangible Assets generated internally like: working procedures and training support documentation, operating procedures incorporated in-platform, (AI algorithms, mining procedures, automation procedures for better operating the “Company Integrated Platform», but also new working concepts (social distancing activities internal workers and partners social distancing relationships) also innovative manufacturing concepts and patent design concepts, on the spot producing new services and software...

All this new Intangible Assets generated internally will be added to the company “Organizational Asset “Operational Platform” which will ad Market Competitive Advantage to the Company every moment and so create the sustainability of the company business. I define “Business Sustainability “like the mix of long term Competitive advantage and strong Intangible Asset “Organizational Structure” like “ Company Integrated Platform”.

Knowledge Flow must circulate everywhere and every time Knowledge management is the basis of business sustainability keeping knowledge in buffers is losing knowledge operational value circulating fast the knowledge is increasing the knowledge for the Business value. To circulate the knowledge fast and wide the Platform is suitable but also for the configuration of the thousands of knowledge capture cells and connect them with thousands of roads to send the knowledge from one to another to filter and structure the knowledge flow. The measurement of this flows is a business indicator mostly because of the business value “marginal competitive business value” of the knowledge composition, “marginal business value “of the flow is not so much because of the strictly description of the nature and destination of the knowledge .

Specially when the knowledge destination is operational competitive business that no Company will disclosure “is like asking at the custom check to take out all the clothes. The regulator intention to check the reality of the Intangible Reporting can be completely just be checking the Knowledge Flow existence and “business marginal financial value that of course we will find in the financial reporting but not necessarily in the increase of fiscal taxes. Can be considered like “future value not yet recognized by the Market”.

The knowledge Structuring and Filtering will be more efficient for the company market value if the “Organizational operational Knowledge will be allocated to the Company different Production components with different roles in the Company Sustainability equation so the Value Production destinated to the sales will generate the necessary revenues to cover the operation cost of the Company and all the production related cost but the next Production is Partnership Production generating the customers relationships necessary to buy the Company goods and services.

In this kind of Production, we include the CRM and many additional applications to capture the customer habits, profile, and trace the transaction context to build experience on this.

For the supply-chains is the same way we need to build knowledge and experience and manage the supplier resilience and Governance in order to control the risk of fraud, corruption, human and social rights, environmental respectfully measures, each of these thousands of headers must be analyzed in the company Integrated Operational Platform based on the captured Knowledge and supported by the Intangible Assets contained in the “Organizational Asset” of the Company.

The most important Company Production is the internal production of business competitive advantage, this is the key production for the "Company Resilience” so must be measured first if we want to rate the Company financial resilience and have wake -up calls on the financial market when the company market value goes very distant of the company book-value creating financial speculation risk and bankruptcy danger.




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