Transforming Knowledge Into Profits: A Study On Business Corporation

Knowledge management (KM) has been applied in lots of companies instead of concept discussion in two years. How to turn knowledge into profits is the core of this essay.Knowledge atoms (KA) are defined and classified according to business process and value chain. Knowledge atoms' properties are discussed. Life cycle management and improvement advices are also provided for knowledge atoms. As the carriers of KA, business processes are classified and leveled. The essay generalizes knowledge process map for combining knowledge atoms and business processes. Distributing density, stabilization and interaction of knowledge atoms in business process are also analyzed. Knowledge atoms are capable of creating profit, which is defined knowledge capability. This paper describes knowledge capability in optimizing value chain/business process and achieving key performance indicators, and provides four management modes for knowledge capability.Knowledge bar (KB) is defined as optimizing systematic status of turning knowledge into profits. Characteristics of knowledge bar are analyzed. This research provides IKPCK model to explain knowledge bar operation. Functions to knowledge atoms and constitutes of knowledge bar are studied. Roles of knowledge brokers in knowledge bar are also generalized. This essay also evaluates operating efficiency of knowledge bar.Thirty management factors are described to affect knowledge bar operation. According to a special survey (above 200 questionnaires) and factor analysis, four factors are generalized including strategy, IT application, employee, organization with high manager cognition. Through multi-factors linear regression, this research validates positive relationship between the four factors and knowledge bar operation, andthen provides a quantitative model for knowledge bar operation. Four profit models including scale model, customer model, product model and knowledge model are described. This study finds out the difference of management factors for the four different profit models, and provides different quantitative models and management advices for four kinds of companies.In the end, this essay provides a case of knowledge model. The profit model, management experiences of employees and knowledge of a consulting company named AMT Group are described for similar knowledge-based companies.