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Title 3 of the main features of the age of the knowledge economy
1. 1 meaning of the knowledge economy
The primary foundation of the knowledge economy is the economy, in other words, that real means of production are no longer traditional money for equipment and raw materials, but rather human knowledge. Previous scholars have defined the knowledge economy as a knowledge-based economy based on the production, distribution and use of knowledge and information. In socio-economic terms, knowledge will play an important role. Conceptually, the knowledge economy corresponds to the agricultural and industrial economies. Here, the knowledge factor is the most important factor of production, and the determining factors for socio-economic development are knowledge and information, highly qualified people and highly intelligent machines。
1. 2 characteristics of the knowledge economy
The knowledge economy is knowledge-based and based on high-technology industries and meets the requirements of sustainable development in contemporary societies. Its main characteristics are the following:
(1) knowledge and information are capital for economic development。
The knowledge economy relies on the production, use and distribution of knowledge and information, which are the primary factors of production in economic activities and which play a leading and central role in accelerating economic growth。
(2) research and development in science and technology is increasingly the foundation of the knowledge economy。
Science and technology are the first productivity, and only if human knowledge, particularly in science and technology, develops to a certain degree can science and technology continue to develop and play a more important role in the knowledge economy。
(3) the proportion of intangible assets is increasing。
The knowledge economy is dominated by intangible asset inputs, and the proportion of intangible assets, including patents, trademarks, etc., is increasing significantly。
(4) the scientific and technical personnel are the main producers. The knowledge economy focuses on the dominant position of science and technology personnel, who will make up a larger proportion of those engaged in research and development。
(5) the knowledge economy is a "low and efficient" economy。
The knowledge economy promotes a harmonious and sustainable economy of people and nature, guided by the scientific, rational, integrated and efficient use of available resources, while developing untapped resources to replace scarce natural resources that have been depleted。
(6) emphasis on industrialization of high-technology technologies。
The knowledge economy places emphasis on the development of high-technology technologies, focusing on the industrialization of high-technology technologies and translating research findings from high-technology technologies into the development of new products and services。
Current situation and challenges facing business management in our country
2. 1 state of business management in the country
At present, business management in our country is in a phase of transition from the traditional management phase to the modern management of enterprises in a knowledge-based economy, which is still somewhat different from the requirements of enterprise management in a knowledge-based economy, and the situation is as follows:
(1) corporate institutional reform is generally inadequate。
(2) business management instruments are generally lagging behind and far from international advanced management。
(3) management norms are generally inadequate。
(4) there is a relative shortage of professional management staff。
2. 2 challenges to business management in our country in the context of the knowledge economy
The advent of an era of knowledge-based economies has posed challenges to traditional business management practices, mainly in the following areas:
(1) challenges to corporate governance concepts and management practices。
Economic growth in the traditional industrial economy is largely dependent on economic resources, while in the knowledge economy it is replaced by knowledge resources that determine economic growth. In traditional business management, human initiative is suppressed. In an era of knowledge-based economies, the socio-economic drive of high-technology technologies has led to profound changes in management theory, with enterprises focusing on humanized management, with a focus on knowledge and people at the centre in order to make them more competitive。
(2) challenges to the way business is conducted。
In the era of the knowledge-based economy, information technology has grown rapidly, especially internet penetration and e-commerce. The breadth of internet applications and the speed with which information is transmitted have profoundly changed business operations. The question of how to conduct a strong business on an internet platform is an issue that businesses need to address urgently. The internet has broken old market boundaries and business marketing has become more interactive. The role of customers is not just that of consumers, but that of participants and business collaborators. Businesses in a knowledge-based economy can only achieve real marketing if they change traditional business practices。
(3) challenges to the way enterprises produce。
In the past era of the industrial economy, enterprises pursued large-scale, homogeneous production or service programmes, while in the current era of the knowledge economy, they no longer sought the speed and volume of production, but focused on human independence, creativity and product differentiation and individualization。
(4) challenges to the form of organization and operation of enterprises。
The traditional form of enterprise organization, which is dominated by pyramid structures, results in the closure of information and delays in its dissemination, and does not allow all managers to be fully informed of the business situation, which necessarily affects the management and operation of business decisions. In the age of the knowledge-based economy, the organization of enterprises is dominated by a flat network approach, which helps them to speed up the transmission of information, reduce management costs and increase competitiveness. At the same time, enterprises, based on market demand and their own strengths and weaknesses, rely on external forces to combine their external and internal resources for virtual operations, breaking the traditional business model。
3 response to corporate governance in the context of the knowledge economy
When faced with the challenges posed by the knowledge-based economy, firms simply adhere to stereotypes, they will have a huge or even devastating impact on their future sustainability. Thus, firms can innovate in the following areas:
(1) changing the concept of business management。
In the age of the knowledge-based economy, firms must focus on innovation if they are to be strong. Innovation is the soul and engine of the enterprise, and the creation of innovative enterprises must depend on the innovative capacity of the staff. Managerial concepts must be innovative. The first is to develop a service-based management concept that treats employees as the real owners of the enterprise, provides them with a comfortable working environment, provides them with the resources they need to work, and fully motivates them. The second is the development of a learning perspective and a sense of innovation, while managers themselves need to strengthen their learning of new management knowledge and concepts so that they can adapt themselves to the requirements of the knowledge economy。
(2) knowledge of modern business management。
The main hallmark of the knowledge economy is the diffusion and application of modern information technologies with the internet at their core, with virtual enterprises, online operations, and so on becoming the main forms of business management in the knowledge economy era. It is therefore important for business managers to master computers, the internet, e-commerce, etc., and to be proficient in the use of modern information technologies。
(3) innovative business practices。
The widespread use of the internet and electronic commerce has brought about significant changes in the way enterprises operate. Business management activities carried out by enterprises on an internet-based platform of e-commerce can result in significant savings in business costs and efficiency. On the one hand, the establishment of a global business strategy, which must be oriented towards international markets, making full use of information networks to run and manage enterprises, and on the other hand, virtual operations, such as human virtualization and business virtualization, with external advantages and a combination of their own resources, compete with outside firms to maximize their competitiveness。
(4) innovative modern enterprise organizational structures。
In the context of a knowledge-based economy, enterprises should build a flat networked organizational structure that accelerates vertical and horizontal transmission of information so that management and staff can access information quickly and easily, thus developing solutions that will increase the efficiency of business management and the responsiveness of enterprises to the market and their ability to satisfy users。
4 concluding remarks
Title 4 of the main features of the age of the knowledge economy
In the early and medium term of the industrial economy, the factors of production were mainly land, labour and capital, and accordingly the cost of products consisted mainly of direct material, labour and manufacturing costs. The value of intellectual capital consumed in the production process, i. E. The cost of knowledge, should be an important component of the cost of the product, since the 1980s, as the technological knowledge content in the production of the product has increased significantly and the role of the knowledge factor in production has become so prominent as to become a key dominant factor in production. This would result in a two-fold change in the product cost structure. First, in the original cost structure by cost item, knowledge costs should be classified as a separate cost item on the basis of material importance, i. E. Product costs should include four components of materials, labour, knowledge costs and other indirect costs. Second, the ratio of variable to fixed costs has changed in the original cost structure, as reflected by cost behaviour. As knowledge costs are mostly fixed, the proportion of fixed costs increases and eventually exceeds the cost of change. In the software industry, for example, the software development fee is a fixed cost, which does not depend on the number of copies of the software, and the cost of software change is minimal。
Ii. The basic method of costing will be the shift from the variety to the batching method
In the industrial economy era, production methods are standardized, i. E., the production of one or more products in large quantities and over time, and the efficiency of production depends on the amount of the same product produced in a unit of time. Single varieties and large quantities are the main characteristics of production during this period. As a result, the variety method, which targets the costing of product varieties, is the most basic method of costing during the industrial economy. In the age of the knowledge-based economy, production patterns are characterized by non-standardized or flexible production patterns, which are small in volume, diverse in variety, complex in type and rapid in renewal. Therefore, modern costing methods should be based on the wholesale method as the main method of costing。
Iii. The shift from a piece-rate to a performance-based wage system in enterprises
In the industrial economy, there are mainly the hourly wage system based on the number of hours during which the worker is present and the piece-rate wage system based on the number of successful items completed by the employee within the unit time (hour, day, month). These two wage systems play an important role in enhancing labour productivity and worker motivation in the traditional economic era. In the age of the knowledge-based economy, however, the criteria for evaluating the contribution of an employee to the enterprise are no longer the length of time spent on duty or the number of items produced, but rather the efficiency of its knowledge, skills and skills to technology and to products. As a result, the age of the knowledge economy is dominated by a pay-for-performance system. This distribution can be expected to break the pattern of “equal pay for work of equal value” and contribute significantly to the advancement of science and technology and productivity。
Enterprises will focus more on environmental cost management
In an era of industrial economy, enterprises tend to exploit natural resources as much as possible, or even exploit them in a predatory manner, without consideration or minimal consideration of environmental costs, causing great damage to the ecological environment and increasing environmental crises. In the age of the knowledge economy, improving the quality of life and creating a better environment is a social obligation for every enterprise. Businesses need to manage their operations in accordance with the sustainable development goals in order to avoid or reduce the costs of their environmental damage and to protect their ecosystems from pollution. As a result, environmental costs have become an important part of the operating costs of enterprises in the context of the knowledge economy, and enterprises will focus more on managing environmental costs。
V. Creating competitive advantage in costs is a central objective of cost management
Under the conditions of the knowledge-based economy, the rapid growth of online trade will lead to a convergence of prices for the same products on the international market, with higher profits for whom costs are lower. Thus, in such cases, enterprises will focus more on the application of cost-leading strategies in order to create their own cost-competitive advantages and thus generate more profits in the international market. In the industrial economy, the objective of cost management was simply to pursue lower product costs, while in the knowledge economy, competition among firms was increasing, and the objective of implementing cost management as an effective means of enhancing the competitiveness of enterprises had been translated into efforts to create a cost-competitive advantage for enterprises。
Improve traditional cost management based on new features of modern cost management
I. Improved accounting for intangible assets
From an accounting point of view, the knowledge economy is characterized by an increase in the share of intangible assets in society as a whole, which for some high-technology enterprises is even higher than fixed assets. In our accounting practice, most intangible assets are not measured. Inadequacy in the measurement of the value of enterprises necessarily places domestic and foreign enterprises at a disadvantage in the conduct of alliances, mergers and international transactions. The main areas where improvements are needed in the accounting of intangible assets are the following:
1. Broadening the recognition of intangible assets. Intangible assets in the knowledge-based economy are becoming more and more extensive, and now more than 20 intangible assets are being addressed in the united states when evaluating companies. Intangible assets currently covered in our country are subject to patents, trademarks, goodwill, land tenure, etc., and should be added to the accounting for intangible assets such as human assets, business partners, financing relationships, long-term customers, business capacity and business culture。
2. Improved measurement of the value of self-generated intangible assets. It should not be measured solely on the basis of actual expenditures incurred in the development of intangible assets, but should also include later inputs, as well as an assessment to confirm their market value。
3. Increase the upper limit on the measurement of the value of investments in intangible assets. Under our company law, companies must not invest more than 20 per cent of their capital in intangible assets, which is clearly inadequate to the needs of social development in an age of the knowledge economy in which intangible assets play an important role in socio-economic development。
Adjustment to the amortization method for intangible assets. Intangible assets, especially intellectual resources such as patents, have a reusable feature, on the one hand because of the rapid pace of their renewal as a result of scientific and technological developments and, on the other hand, because their amortization rates and methods are generally greater than at a later stage, such as rapid depreciation, as in the case of accelerated depreciation of fixed assets, or an appropriate reduction in the period of amortization of intangible assets. This enables both accurate accounting of intangible assets and accurate costing of knowledge products。
Introduction of operational costing and operation cost management
As noted earlier, the weight of items in the cost items of the knowledge economy will change significantly, as will the content of cost accounting, and the current method of allocation of manufacturing costs will seriously distort the true cost of products and services, leading to distortions in cost information and decision-making. There is therefore a need to improve the current method of distribution of manufacturing costs, which can be improved in two ways: by distinguishing between different manufacturing costs and applying different allocation criteria. This approach can only cure the symptoms and not the root causes, as standards may evolve over time and over time. The second is a fundamental change in the current distribution methodology by introducing operational cost accounting. Since operating costs are based on cost-driven criteria for allocating costs, the unscientific disadvantages of the allocation criteria can be fundamentally eliminated. Operational costing is based on operational consumption of resources and product consumption。
Introduction of environmental accounting to assess and control environmental costs
Title 5 of the model of the age of the knowledge economy
[keywords]: knowledge economy; business marketing; consumers
Catalogue number: f27 bibliography code: a article number: 1997-0668 (2008) 0110094-01
Impact on consumer demand
The development of a knowledge-based economy driven by the technological revolution has, on the one hand, led to the rapid development of social wealth and, on the other hand, to the improvement of consumer living standards and changes in consumer demand as follows:
1. Individualization of consumer demand
Consumer demand and consumption behaviour tend to be individualized by the knowledge economy, which generally increases the educational and cultural level of consumers. At the same time, the knowledge economy leads to innovation in science and technology and knowledge, leading to individualization of consumer consumption. As a result, firms are required to shift to a single, large-scale marketing approach in the industrial economy and to individualized and diversified marketing。
2. Rationalizing consumer behaviour
In the age of the knowledge-based economy, the improvement of consumer literacy has enabled them to gather information on purchasing decisions in a comprehensive and expeditious manner, using well-developed information networks. For example, consumers use computer consulting software to quickly gather information on products and develop different purchase options from which best purchasing decisions can be selected。
Consumer demand
There is a shift from low-level physiological needs to high-level needs, from material to mental needs. For example, consumers have shifted from their original biological needs for food and clothing to spiritual needs such as cultural education and recreation。
Consumers face more product choices
The knowledge economy promotes the rapid growth of the internet, thereby allowing foreign markets to break regional, behavioural and temporal boundaries, and buyers can compete fiercely among sellers wherever and at any time through the internet to search for and select their ideal sellers, thus allowing buyers to freely choose their domestic and foreign sellers and consumers to become increasingly critical of their products。
Ii. Impact on products
The first is that the knowledge economy has led to significant changes in product extension and content. In terms of product outreach, not only did the age of the knowledge economy become commodities for agricultural and industrial products, but knowledge, services, information and technology became commodities, i. E. Intangible knowledge-related products became the main consumer target. As knowledge becomes a central element of the knowledge economy, the content of knowledge in products is required to increase in terms of content. As a result, the criteria for measuring product value have changed from traditional material-based to knowledge-based measurement。
Second: the knowledge economy, with information technology at its core, has evolved rapidly in terms of the development of residential technologies, reducing the design, development and use cycles of products, thus requiring enterprises to rapidly develop new products and rapidly market them。
Third: the impact on prices: the information technology revolution, characterized by digitalization and networking, has made the internet widely available, thus requiring enterprises to price them face-to-face with users。
Fourth: impact on distribution: the knowledge economy has had a huge impact on traditional distribution methods, i. E., by selling products to end-users mainly through intermediaries. On the other hand, online transactions are becoming more frequent and enterprises must adapt to this change at the earliest opportunity。
Fifth: impacts on business marketing management: the challenge of loose management of the traditional marketing management model, which is subject to geographical location and time constraints, cannot be a great one。
In order to face the profound impact of the knowledge economy based on the information and high-tech industries on the marketing of our enterprises, our enterprises must take up the challenge of marketing innovation. This includes, inter alia, marketing concepts, marketing systems and innovations in marketing management。
Innovations in business marketing concepts. Marketing innovation is at the heart of and a prerequisite for business marketing innovation. Innovation in marketing concepts requires a shift from traditional marketing concepts that meet the needs of customers to new marketing concepts that not only meet the needs of customers but also create them. This is due to the age of the knowledge-based economy, the rapid development of science and technology, the significantly shorter life cycle of products and the proliferation of new products, which has led to changes in social needs and intense competition between enterprises, which has inevitably led to a constant renewal of the business philosophy. Second, firms are required to move from domestic marketing to global marketing. The era of the knowledge-based economy has advanced global economic development, bringing together domestic and external markets. Thus, enterprises need to develop a global marketing perspective in order to advance enterprise development。
Innovative marketing systems. Innovation refers to the creation of a new production function, a "new combination" of elements, which includes the introduction of new products and the provision of new quality; the introduction of new technologies and modes of production; the opening of new markets for raw materials and new sources; and the introduction of new forms of enterprise organization。
Marketing organizational innovations in the age of the knowledge economy have shifted mainly from traditional hierarchies to soft marketing organizations. In the light of current trends in international soft organizations, it is mainly flat, networked, intelligent, virtualized and globalized. One is flattening. It refers to direct contacts between enterprises through technology networks and a wide range of employees, as well as an interactive feedback mechanism between enterprises and consumers and research institutions. Second is networking. It is to transform the traditional hierarchical relationships between business leaders and the workforce at large into informal networks, thereby enhancing the self-confidence of staff and the efficiency of operations. Three is intelligent. This requires that employees constantly improve their personal knowledge and wisdom and constantly transcend their own self, while emphasizing the power of systematic thinking and the integration of knowledge in enterprises in order to constantly re-create their infinity. Four is virtualization. The ad hoc network, which relies on information technology, is an organizational form of a new, flexible enterprise. In order to achieve its objectives, an enterprise may cross the boundaries of the enterprise and seek a wide range of production chains (e. G. Product design, process design, manufacturing, business marketing, etc.) and a form of optimized mix of factors. Once an enterprise has completed its objectives, it is dissolved. This form of organization can achieve complementarities and cost savings. It requires a high degree of collaboration, coordination and integration on the part of regulators. It requires that business forms of organization and organizational behaviour take full account of the characteristics of the era and examine how business marketing can be brought into line with international practices, adapt to the demands of global markets and adapt to global competition strategies。
