Knowledge and characteristics of information age

Why knowledge is important in the information age

In the information age, knowledge and information are the main resources of production, power and wealth, just as land was in the agricultural age and machines in the industrial age.

1. Source of wealth: knowledge creates software, patents, designs and services that earn far more than raw materials. Knowledge-based firms are the world's richest.
2. Employability: jobs need education and ICT skills; knowledge workers (engineers, analysts, doctors, designers) earn high incomes, while unskilled jobs are automated.
3. Innovation and competitiveness: new products and services come from research; firms and nations that do not keep learning fall behind (e.g. Kodak, Nokia).
4. Better decision making: accurate data on markets, weather, health and finance lets people, companies and governments decide wisely.
5. Power: control of information gives political, economic and military advantage.
6. Rapid change: technology changes quickly, so continuous (lifelong) learning is required to stay relevant.
7. Empowerment: knowledge of rights, health and markets empowers citizens, women and farmers.
8. Global opportunities: with knowledge and internet, a person in Nepal can work for clients worldwide through IT outsourcing and freelancing.

Characteristics of the information age

• Information as the main resource and economic product.
• Digital technologies: computers, internet, mobile phones, cloud, AI and big data.
• Knowledge workers form a large part of the workforce.
• Service-based economy: IT, banking, education, health and media dominate over manufacturing.
• Globalisation: instant worldwide communication, global markets and e-commerce.
• Networked and flat organisations: less hierarchy, teamwork and remote collaboration.
• Flexible work: work from home, freelancing and gig work.
• Customisation: products and services tailored to individuals using data.
• Rapid change and short product life cycles.
• Lifelong learning and online education.
• New social issues: digital divide, cyber crime, privacy loss, information overload, misinformation.
• Less dependence on physical location: a company can operate anywhere.