Three types of knowledge

As accurate and as valuable today as it was nearly 25 years ago when it was written.

When it comes to new knowledge, there are three kinds. There is first the continuing improvement of process, product, service; the Japanese, who do it best, call this Kaizen. Then there is exploitation: the continuous exploitation of existing knowledge to develop new and different products, processes, and services. Finally, there is genuine innovation. These three ways of applying knowledge to produce change in the economy and in society need to be worked at together and at the same time. They are all equally necessary. But their economic characteristics — their costs as well as their economic impacts are qualitatively different.

Peter F. Drucker, Post Capitalist Society

 

Continous improvement and continuous exploitation are requirements to keep your business on the path, but only genuine innovation can create a new path.


Also published on Medium.