Summery and your opinion Essay Example | Topics and Well Written Essays - 750 words

Summery and your opinion - Essay Example Economists have proposed changes in the business sector. The proposed changes are mainly targeting large businesses with the aim of transforming them into entrepreneurship. Transformation of an organization from a knowledge-based organization to an information-based organization is not achievable with only data processing. The attempt by the British to establish an information based organization in the modern India proves the idea (Drucker 45). The impacts of computer technology in business are the first evidence of the inevitable transformation of knowledge-based organizations to information-based organization. Coca-Cola Company is an example of a company that is still in the transformation process. Recently the company has automated its production plants using information system. The best way to measure the benefits of computers in business is through an analysis of technology as a capital. This implies that we need to determine expected rate of return, payout period and the investment’s expected productive life, discount present value of returns, cost of deferment risk, cost of risks resulting from failure and the opportunity cost (Drucker 46). The rate of data processing has been linked with the transformation of knowledge-based organization to information-based organization. The British experience in India however proves that advanced data processing is not adequate to create an information-based organization (Drucker 48). An organization’s capacity to process data determines its structure and this is the second effect of the transformation. Data gives information the required relevance however the process of transforming data into information depends on knowledge. The most appropriate definition of knowledge is based on specialization and therefore it is not easy to separate information from knowledge. Similar to the knowledge-based organization, an information-based organization requires specialists. In addition, there are more specialists