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Big data has emerged and is growing in recent years. It can be related to markets, customers, operations, transactions, and so on. The company uses data and information as a knowledge base for businesses to develop strategic competitiveness.
A knowledge-based business will become a new source of economic growth. Advanced technology allows us to capture various data and information, which is vital in various decision making. The support of computational and statistical tools will further advance data exploitation and information.
Definition of knowledge
Knowledge refers to the understanding gained through experience or learning. It can also mean information and deeper understanding. For consumers, it means the meaning or belief of consumers about the products they store in their memory.
For business, it is an intangible asset, so it does not appear in company reports. However, with that, the company becomes valuable, and an acquirer dares to pay a premium.
What does knowledge mean for business?
Maintaining, managing, and exploiting it can be a source of competitive advantage and distinguish it from competing companies. Learning capacity allows companies to minimize threats and exploit opportunities in the business environment.
Knowledge is the basis of innovation and technology. For example, companies can create innovative products by building information-rich relationships with customers and suppliers.
In general, three categories of knowledge in business, namely:
- Embedded knowledge, which refers to skills and understanding locked into the organization’s processes, rules, or culture.
- Tacit knowledge, which is rooted in personal experiences or practices that are difficult to transfer, write, or visualize to other parties.
- Explicit knowledge, which is stored in the media. We can easily articulate, codify, store, or transfer it to other people.