New Business Model:

Business Enablers


What Your Firm Knows to Create Value


By: Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!


"Knowledge is of two kinds. We know a subject ourselves, or we know where we can find information upon it." ~ Samuel Johnson

"What enables the wise sovereign and the good general to strike and conquer, and achieve things beyond the reach of ordinary men, is foreknowledge." ~ Sun Tzu, 'The Art of War'

Knowledge Management Creativity Management LOGO of Ten3 Business e-Coach: Design Secrets Continuous Learning The Power of Simplicity Vadim Kotelnikov (personal website) Innovation - Bringing New Ideas to Life

Knowledge Includes:

  • know-how of creating value

  • processes of how the firm works

  • best practices

  • customer intelligence

  • new business concepts

  • R&D

  • competitive intelligence



Five Important Implications of Knowledge as Value3

  1. The tangible output of knowledge work is explicit knowledge, but the creative process is largely tacit.

  2. Explicit knowledge is increasingly quick and easy to distribute globally

  3. When it is embedded in products and services, explicit knowledge dramatically lowers the cost of the basic infrastructure required to be competitive

  4. All knowledge creates new knowledge and, thus, grows through use, while physical assets are depleted by use.

  5. The explosion of knowledge growth, combined with its rapid distribution, makes it difficult to stay on top of the available knowledge in any industry. Thus, a global knowledge economy rewards not only creators of new knowledge but also those who can identify and integrate knowledge effectively.

80/20 Principle

10 Golden Rules for Successful Carriers

  • Realize that knowledge is power... More

Knowledge Defined

Knowledge is a set of understandings used by people to make decisions or take actions that are important to the company.


As opposed to "information", knowledge is defined by its use and its relevance to work. It should be linked to the building blocks of how the organization creates value, especially unique know-how and capabilities.1

Knowledge as the Source of Business Value

In the new economy, the knowledge component of products and services has increased dramatically in importance and has become the dominant component of customer value. The shift to knowledge as the primary source of value, makes the new economy led by those who manage knowledge effectively who create find, and combine knowledge into new products and services faster than their competitors.

"Knowledge includes all the valuable concepts and vital know-how that shape a business to be wanted and needed by customers. Companies that are fast to market and demonstrated an ability to move with speed and sustain speed view time and knowledge as assets that are real money in the bank."4

Explicit and Tacit Knowledge

All knowledge isn't the same. There is explicit knowledge the kind that can be easily written down (for example, patents, formulas, or an engineering schematic). The explicit knowledge can create competitive advantage, but its half-life is increasingly brief, as it can be replicated easily by others.

Tacit knowledge, or implicit knowledge, is far less tangible and is deeply embedded into an organization's operating practices. It is often called 'organizational culture'. "Tacit knowledge includes relationships, norms, values, and standard operating procedures. Because tacit knowledge is much harder to detail, copy, and distribute, it can be a sustainable source of competitive advantage...

What increasingly differentiates success and failure is how well you locate, leverage, and blend available explicit knowledge with internally generated tacit knowledge."3

9 Signs of a Losing Organization

Inaccessible from explicit expositions, tacit knowledge is protected from competitors unless key individuals are hired away.

Balanced Organization: 5 Basic Elements

Leadership (Fire):

SYNERGISTIC ORGANIZATION (Ten3 Mini-course) - How To Build a Modern Winning Organization





  1. "The Centerless Corporation", Bruce A.Pasternack and Albert. J. Viscio

  2. "Smart Business", Dr. Jim Botkin

  3. "Relentless Growth", Christopher Meyer

  4. "It's not the BIG and eats the SMALL... it's the FAST that eats the SLOW", Jason Jennings and Laurence Haughton

  5. "Productivity Improvement in the Service Sector," Mah Lok Abdullah, APO Newsletter

  6. Synergistic Organization, Vadim Kotelnikov

  7. Harnessing Cultural Intelligence (CQ), Vadim Kotelnikov

  8. Inspiring Corporate Culture, Vadim Kotelnikov

  9. 25 Lessons from Jack Welch, Vadim Kotelnikov

SYNERGISTIC ORGANIZATION (Ten3 Mini-course) - How To Build a Modern Winning Organization

Knowledge Management

Continuous Learning

Learning Quotes

Learning: One Way Many Paths

Creativity Management

Idea Management

Tacit Knowledge


How To Run a Brainstorming Session

10 Brainstorming Rules

Knowledge-based Enterprise

Managing Knowledge Workers

Learning Organization

Teaching Organization

Coaching Organization

World Cultures

Hinduism: Gain the Highest through Knowledge

Pearls of Wisdom