Value-the life blood of capitalism is a PowerPoint about the essay of Ruth Rikowski from the University of Greenwich, London, UK. (2000) and presented by Efrain Rivera, for the course of EPS 590 OP Open Source, Open Access, Open Education Global Studies in Education, with the professor Michael A. Peters. The PowerPoint is focus on the current reality, in which we are witnesses of a new phase of modern economics; it is knowledge revolution. The success for this knowledge revolution is base on the creation of value that is extracted from knowledge. Today the business and financial sectors are opening to a more broadly knowledge base economy. This is shaping the business and financial sectors, creating a revolution of knowledge, influencing on how we apply cost and value to information and to knowledge.

1. Value-The life Blood of Capitalism:
Knowledge is the current key
Ruth Rikowski
University of Greenwich, London, UK. (2000)
Present by: Efrain Rivera

2. At these present times, we are witnesses of a new phase of modern economics, it

is knowledge revolution. The success for this knowledge revolution is base on the
creation of value, that is extracted from knowledge.
Rikowski (2000) argues that capitalism goes through different phases, the

Agrarian Revolution, the Industrial Revolution, and now Knowledge Revolution .
Capitalism and modern economics are essentially dependent on value. This is

the current phase of capitalism and it is link with the success of knowledge, on
how is used, applied and validated.
Gilder (1989) disputes that the states of the basic tenet of knowledge revolution

will be the “overthrow of matter.” Wealth, in the form of physical assets will
diminish, while wealth, in the form of knowledge assets will increase. The power
of mind will usurp the brute force of things .

3. Jeremy Rifkin (2000) indicates that the industrial age emphasized the

exchange of goods and services, the coming age will emphasize the
exchange of concepts.
Knowledge revolution is determining the way the game is play in moderns

economics. The success of industries in this latest phase of capitalism
depend on the way of transition into this knowledge revolution and into
their key components .
Knowledge revolution is the early phase of a major economic revolution.

This revolution is supported around the concept of a post-industrial era,

where productivity base on making things is increasingly automated and
routine; creating things is difficult and value therefore derives from
creation and from the intellectual capital or knowledge base of the firm or
nation (Potter, 1999).

4. Value Platform
knowledge
Management
Global
Capitalism
Knowledge
Revolution is
Value
being shape
Economics creation
through
Knowledge
Philosophic
Value
method ground
in knowledge

5. Why is call knowledge management ?

Is base on value, that needs to be extracted from knowledge in today’s economy

and so knowledge itself is crucial.
McFarlane (1998) identify knowledge as special sets of beliefs which integrated

abstractions from our experience into a capacity for effective action.
Why is relevant a philosophic definition of knowledge management?

Critics don't understand, why is crucial to use concept like “epistemology”

, describe by Oxford English Dictionary (1998) as a theory or science that studies
the methods grounds on knowledge. They see the management of knowledge as a
consumption of concepts, beliefs, and experiences which are “people
management” not a philosophic or science method.
Rikowski (2000) argues that the terms recommended by the critics, “people

management” is incorrect when taking about knowledge management, because
that is incline to a human resources concept not knowledge management
concepts.

6. Knowledge management primary concern is to ensure business success , one step

to secure this is by separating the concepts of knowledge management from
information management .
Knowledge information is the process gathering data / Knowledge management is

understanding and interpreting data.
Information Knowledge
Management Management

7. The meaning of value?

The business module of value is examined by the production of good, service and

products of consumption; engaging in the creation of value.
Tapscott (2000) says that innovation drives everything, competition and

investments, but this is only possible by the creation of new ways of value.
In today global economics, capitalism, use value by transforming commodities

into the marketplace (ex. Production of Metals), then commodities are exchange
for value.
Marx & Value

Marx (1848) understood that value in all of it

dimension, surplus, exchange, adding and value it self is define by labor.
Labor explore value, by creating a multifaceted, multidimensional concept of value

that is only created through the power of labor.

8. Marx saw commodities in two forms:

 Physical-Form / Value-Form
Feeds
Physical Used &
Substance & perpetuates
nature validation
components capitalism
Specific
creation of
Materials
Human
Iron, plasti products
Physical Value
Labor
c, wood
form form

9. Marx transfer commodities into value:

Use of Value Exchange of Value
Use Exchange of Commodities
Utility Exchange of Supplies
Consumption True Expression of
Commodities

10. Knowledge is the essential ingredient for creating value in the global capitalism

system.
 Value and wealth derive from the process of creating, not making things (Potter,
1999).
 This is the model of Dzinkowski (2000)
Human Capital
to comprehend the creation of value.
This is knowledge capital (human knowledge)
Structural Capital
when is transfer into structural capital
(companies-structure capital). Organizational
Capital
Costumer
Capital
Intellectual
Capital

11. As the industrialized world today enters into a knowledge

revolution, value is now being created from knowledge. The knowledge
revolution is the latest phase of capitalism, which life system is value.
A series of concerns come into consideration:

What are the consequences if knowledge relative concepts are not

carefully examined?
In this revolution of knowledge , today, the extraction of knowledge is

one of the main focus, What will be the next phase of extraction…
emotion, convictions, belief, or imagination?
Rikowski (2000) believes that hopes lies in bringing about a new form of

capitalism, one that will start a different world; a kinder, better, fairer
world; a world beyond.

12. Let us look towards the future,
a social-future, certainly,
and ultimately, in the direction
of a global common society,
that is based on human need and
self-expression! (Rikowski,2001)
Thank you for your time!!!!

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
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
capital, in G. Crow and S. Heath (eds.) Social conceptions of time: structure and process in
work and everyday life. London: Palgrave
Potter, David (1999) Wealth creation in the knowledge economy of the next millennium .

Third Millennium Lecture, Downing Street, 27 May. Available at: www.number-
10.gov.uk/textsite/news/features_display.asp?id=665
Rikowski, Glenn (2002) Fuel for the living fire: labor-power!, in Dinerstein, Ana C. and

Neary, Michael (eds.) The labor debate: an investigation into the theory and reality of
capitalist work, Aldershot: Ashgate
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
revolution . Dissertation submitted to the University of Greenwich, in partial fulfillment for
the degree of MA by Research in Business
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
intellectual labor, Information for Social Change, Summer, No. 19. Available at:
http://www.libr.org/ISC
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
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
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Smith, Adam (1776) The wealth of nations (Books 1-111) London: Penguin

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
The only thing that counts is smarts, Business 2.0, March, pp.220-227
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
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