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Small- and Medium Enterprises: Better access to information management and knowledge networks

Guest post by: Norbert Knoll von Dornhoff

Article Overview: New factors of production and sources of competitive advantages such as various innovations drive the information and knowledge economy in the third millennium. Concerned are practically all industries and all enterprises independent of their size. For instance, a laptop, a car or a cell phone are not produced by one single person or company, cooperative networks are fast becoming the basic units or innovation and production, among them a huge number of Small- and Medium Enterprises (SMEs). They are embedded within information networks communicating with supply chains, technology transfer organizations, share holders, managers, investors, which all contribute to corporate information and knowledge.

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Small- and Medium Enterprises: Better access to information management and knowledge networks

The new global world of distributed competence

Information management and knowledge networks can be seen as concepts permitting the way between suppliers and users of information to be shortening. SMEs are entering the new global world of „distributed competence”, being the notion that pent-up capacity and capability in many areas around the world are now more available, initially at lower cost than in the past, but with increasing competence as these capacities are used and absorbed by users. In order to integrate these external resources, two instruments are required:

- Firstly, SMEs should enjoy easier access to appropriate tools to stock the external knowledge according to their needs.

- Secondly, SMEs will have to develop a new information and knowledge management process by assuring an optimum diffusion of the knowledge to their staff and their networking business partners in order to exploit the information and generate added value.

More than 50% of all innovations originated from single inventors and SMEs

It is fascinating to note that already now, 30% of all internationally traded goods and services and at least 10% of all FDIs (Foreign Direct Investments) are been generated by SMEs. The Georgia State University in a recently published study estimated that since World War II more than 50% of all innovations and even 95% of all „radical” innovations, e.g. in electronics, medicine techniques and genetic engineering originated from single inventors and SMEs. Considering the fact that in most Countries of the world approximately 98% of the enterprises are SMEs one can imagine the huge potential of SME’s contribution in the nearer future to economic growth, employment and alleviation of poverty in less developed Countries and less privileged economies.

Available information management tools

International UN Organizations, e.g. UNIDO, OECD, UNESCO, UNECE, the International Finance Corporation (IFC) of the World Bank and Civil Society Organizations, such as WUSME World Union of Small- and Medium Enterprises, but also various private companies, e.g. Microsoft, IMB and others support and promote information and knowledge management with a series of intelligent and efficient programs and service offers. Broadband Communication Systems provide a real possibility for fundamental changes in the way that distributed organizations interact and intra-company transactions are carried out. However, their use has o be tailored to SME’s capabilities as well regionally as in accordance with the stage of their development. Here is one good example:

UNIDO EXCHANGE MARKET PLACE: The system comprises among other services investment and cooperation opportunities, technology transfer, product offers and requests. UNIDO’s ITPO Network enables SMEs to use the Information Fast Lane, partnership promotion, investment and technology promotion, delegate program and business negotiations. Another strong tool is the SPX Subcontracting and Partnership Exchanges and Outsourcing Software (UNIDOSS). Other UNIDO services are: Investment and Technology Promotion, Private Sector Development with priorities: Business Partnership Program, SME Cluster and Networking, Women Entrepreneur Development. SMEs supporting national Non-Government Organizations, Chambers of Commerce and Industry, Commercial Banks will play a decisive role by helping SMEs customizing these service offers of International Organizations.

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Article Tags: information, knowledge, management, NGO, SME, support, UNIDO

About the Author: Norbert Knoll von Dornhoff
RSS for Norbert's articles - Visit Norbert's website

Date of birth: 27th March 1941, originating from the South Tyrolian family, The Barons Knoll von Dornhoff. Austrian nationality. Married, three children. Studied jurisprudence and national economics at the Universities in Vienna, Austria and St. Gallen, Switzerland. Graduated Dr.jur. (LL.D)and Dr. phil. and Mag.rer.soc.oec (MBA). Professor (adj. associate) of Economic and Fiscal Policy of the International University for Entreprenology, Hawaii, USA. Languages: German, English, French, Hungarian. Attorney at Law, later Head of the Environment and Energy Department of the Austrian Federal Chamber of Commerce, then appointed Secretary General of the Austrian Federal Chamber of Architects and Engineers. Austrian Delegate to International Organisations (e.g. UNO, ECE, OECD), often as Extraordinary Ambassador and Authorised Minister. 1979 to 1982 Deputy Director Finance of Wienerberger Baustoffindustrie AG. From 1983 to 1991 Permanent Observer SACEP South Asian Co-operative Environment Programme (Governmental Organisation) to UNIDO in Vienna. From 2010 up to date General Secretary of WUSME World Union of Small and Medium Enterprise

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