Business is a socially legitimate activity that comes its right to exist by economic efficiency and the legitimacy it creates for itself, for its investors, and for its wider network of constituencies. It owes its cultural legitimacy towards the trust this inspires in employees and society at large; to its partnership with government authorities and other professionals in fixing problems of social importance, and to its enduring commitment to delivering economic benefit that assists the public great.

The Information Community

In the developing world, you will find two main economic routines or sides: a bulk-processing community yielding products that essentially congeal resources after some knowledge underneath Marshall’s principles of decreasing returns, and a knowledge-based part of the overall economy that produces increasing-returns electronic commodities, like Hewlett-Packard’s computers. Companies in the knowledge community often have businesses that period both worlds. But most of the time, high-tech companies separate all their knowledge-based business from their bulk-processing ones.

The Management Environment

In the knowledge world, competition is not a basic exercise in bargaining but a series of missions to deliver the next technological winner–the next money cow. In this milieu, managers have to be more mission-oriented than production-oriented. They should organize incursion units of people–those that can deliver the next product that will make a company rich–in small clubs that report directly to the CEO or to the board of directors.