To repeat text from our old post…
Information becomes knowledge with: analysis, comparison, making relations and with cause effect connection. That’s why information need to be accurate, on time, valid and usable. It is not any more problem to gather information but it is problem to interpret them and convert them to knowledge. Knowledge is set of information with power to create new meanings and data, goal is to be useful. Knowledge tells how to use information.
Knowledge generators (as displayed on figure below) that allow analysis, comparison and new relations are all instruments and methods including tools that convert information with its environment into knowledge.
Knowledge convergence actually means to direct knowledge generators in transparent way to strategic vision. Direction of knowledge in narrow sense means not to make amorphous quantity but presentation of precise amount and how much it contributes in strategic vision.
If you are still not sure what it means please just take a look on following figure (below).
Strategic Vision needs also kind of quantifier in order to measure its success and one of the best way is to measure it buy its impact on profit, especially long-term sustainable profitability. Strategic Vision buy its nature should provide additional profit if its going to be implemented fully as planned. Top Management wants to maximize its business value and off course best is to present it buy its impact on profit. New profit created by direct influence and as a result of strategic vision is presented with purple pillar (right side, above).
Here comes knowledge contribution effect…
Without quantification and knowledge transparency on strategic vision it is impossible to measure how much each project, analysis, innovation, effort, product launch, organizational contribution participate in profit. It is not possible to measure and knowledge generation is dispersed through complete additional profit (purple pillar). Knowledge convergence means to determine and to measure contribution of each knowledge generator like projects, methods (ABC, Balanced Scorecard, Six Sigma and etc.), tools (Data Mining, standard BI, Financial and Controlling BI, Business Performance Management) – presented in picture with colored squares (above). Knowledge Direction makes easy to measure contribution of each knowledge generator, because they contain relation with profit.
How to make Direction of Knowledge Generators and to measure their contributions in Profitability?
In Total Controlling Concept!
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