The role of engineering in knowledge management - the key to wealth creation

The term 'knowledge economy' is now widely used to signify the growth of a new industrial era, encompassing the capture and exploitation of global kno wledge, to create new, or improved, processes or products which, in turn, g ive rise to wealth creation. But how does knowledge arise and how is it par t of the enabling process that leads to new processes or products? How are raw data turned into wealth creation? And what is the role of engineering i n this process? This paper describes a Capability Framework, which shows how the collective operational competence of any organization is driven by the procedures reg ulating its activity, the information availability and the human skills app lied. It further shows how the learning and experience that support the dec ision making are fundamental in determining the quality and effectiveness o f the process through which the activity is directed. The Capability Framework also shows the linkages with creativity and innova tion which, applied through the transformation mechanism provided by engine ering, can harness collective capability and with the Business Strategy est ablish wealth creation through technology introduction and new product deve lopment. This approach identifies the basis for the controlled management of busines s performance improvement by channelling effort through the three fundament al segments, (Staff development, information systems and operating processe s) to provide a platform for the implementation of continuous improvement i nitiatives in a self-sustaining environment. Additionally, it highlights th e importance of knowledge capture as a means of improving the decision maki ng process, particularly in recognition of the increasing proliferation of basic technology that is the unavoidable by-product of specialization. The importance of culture change, as the essential catalyst for sustainable improvement, is presented in the context of repositioning the field of eng ineering to reignite creativity and innovation as the drivers of wealth cre ation.