Wednesday, November 3, 2010

The Modern Factors of Production

According to traditional economics, the factors of production were land, natural resources, capital, human labor and capital goods. All these factors interact to produce new goods and services which are then sold for profit.

This system worked fine since the advent of the Industrial Revolution. However, information technology has added a new factor -- knowledge.

Right now, knowledge adds more to the cost of production than almost any other factor. The modern steel composites that make your car lighter and more fuel efficient are an excellent example. The knowledge needed to develop the new, lighter steel is part of the cost of goods that's factored into the purchase price.

Knowledge is the only currency with any real stock. Information is precious and vital -- knowledge is power, so they say.

The real question is how are you using the knowledge your business accumulates and generates? Are you using it to empower workers to make better decisions or are you hording it? Do you even know?

Find out today -- (305) 423-9574.

R-Squared Computing | Lou RG | Nearly Free IT | Firm Wisdom

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