Knowledge Work as Information Transformation

Core Idea:

• Technical change is improvements in how goods are produced
• knowledge work is information transformation
• knowledge work is information manufacturing
• software transforms information
• better software creates "technical change" via improvements in how information is manufactured
• information in itself is not strategic
• being able to process information faster as an organization than your competitors is the advantage
• we have to constantly meet both the minimum technology "table stakes" and push the envelope on how we apply technology to create information processing advantges
• Landing: how we invest in technology to process information more quickly, more cheaply, and with better results becomes strategic to the success of a business

Software applied to information transformation is now not even an argument, its only a function of how we apply software tools to digital information. The application of software methods to knowledge work has become "table stakes" in every competitive market.

we just established knowledge work as non-physical labor economic roles -- anything job function that doesn't have direct labor output has some measure of knowledge work involved.

Past industries have been disrupted by technology (agriculture, manufacturing), where the transformation of materials to goods was changed through the integration of technology

knowledge work is not labor, but information transformation ("the manufacturing of information") -- information is output, not labor

why is this compelling? --- once we have this framing in place ("kw as information transformation") --- we understand how critical information processing and the related technology investments are to the core of a business.

Key idea: more efficient information transformation as a key competitive edge

information transformation is the competitive edge to be invested in

I want to reduce this idea to simply "knowledge work is information transformation".

The Information Factory

knowledge work is not labor, but information transformation ("the manufacturing of information") -- information is output, not labor

why is this compelling? --- once we have this framing in place ("kw as information transformation") --- we understand how critical information processing and the related technology investments are to the core of a business.

Knowledge work is information processing in non-labor-output roles. As information flows into the company's business units, it is processed and enriched through knowledge work until it acts on its intended goal (e.g., "capturing revenue"). In the graph below we can see an example of a property insurance company generating revenue through information flow across its business units arranged as a graph.

Knowledge work technology supports information processing in a company's graph of information flow and serves as a critical catalyst for converting incoming data into actionable insights, ultimately facilitating a faster and more efficient flow of sales into cash. Improving your information processing capabilities directly correlates to improving how well you produce business results.

knowledge work is services work that does not output physical labor, but more information for input to other business units

once software transformation of information becomes table stakes...

The technology we apply to knowledge work information processing is the differentiator in our business. Application of software is a given for any organization that wants to compete using information. It's a function of "which software tools and platforms do I use?" that determines how competitive my organization will be in the market.

to be minimally viable in an industry you must use a certain amount of automation and tools. to raise their level of competitiveness the company needs to use better tools and software. the information productivity of the software becomes the "technical change".

Knowledge work is information processing.

Technology enables "technical change" in information processing.

In economics, technical change refers to improvements in the way goods and services are produced, often through better technology, processes, or knowledge. It allows more output to be produced with the same amount of inputs, increasing productivity.

there are 2 ways to make a company more productive with technology

1. make a task more efficient (faster, cheaper, better quality) through better technology
2. make a team more efficient through coordination

Methods to affect technical change in information processing include:

1. spreadsheets
2. databases
3. data platforms
4. business intelligence applications
5. "artificial intelligence"

In today’s competitive landscape, knowledge work should be understood not as labor, but as the transformation of information—where the primary output is enriched data that drives business outcomes. In industries like insurance, where value is generated through the flow and processing of information across business units, technology becomes a strategic enabler of productivity.

Investments in tools such as spreadsheets, databases, business intelligence, and AI are not just operational improvements—they are forms of technical change that determine how efficiently and effectively a company can process information. This capability directly impacts the speed and quality with which a company converts data into decisions, insights, and ultimately, revenue.

As knowledge work becomes increasingly central, the software choices that support information processing evolve from operational considerations into core strategic decisions, with sustained competitiveness hinging on the ability to outpace peers in information productivity.

In the last article I wrote about how services sectors process information to give their organization an advantage over other competitors that do not use technology as effectively as they do. This idea of organizational information transformation maps directly to our definition of knowledge work. Knowledge work is what is driving information processing in these organizations. Further, if technology can accelerate information processing tasks, they can also be considered knowledge work accelerators.

As competitive pressures demand “doing more” with a finite amount of time and resources we are pressed to find ways to be more competitive. Knowledge work tasks are great candidates to find more productivity as we can use better software methods.

If we are looking for ways to improve productivity in organizations, then we can start with the industry knowledge work table to a relative sense of “how much knowledge work is being done in a sector”. We can further look at the top knowledge work roles per sector and then map those roles into specific tasks. This gives us a better understanding of how and where the information-heavy knowledge work is being done, framing the conversation around how and where we should use technology to drive productivity.

knowledge work is modern information manufacturing --- we transform information into ... more information.

Technology Becomes Strategic

Key idea: more efficient information transformation as a key competitive edge

information transformation is the competitive edge to be invested in

Not every industry is the same, but as knowledge work becomes more critical to an industry, the decision about which technology and information tools to invest in becomes as strategic as any decision in the organization.

there is constant evolutionary pressure to be more efficient in information processing than the other competitors in your industry. once your competitors find near parity with your technology investment, it becomes "table stakes" and you have to find further technology investments to stay ahead of the pack.

The Red Queen demands that we constantly look for ways to be more productive, where technology is the divining rod, and knowledge work is the evergreen field of opportunity.

Your technology platform for information processing has to be considered a strategic investment and not just a cost center for for the company. From that perspective, you should be prepared to spend a non-trivial amount of effort in building and updating a plan to constantly improve your tools for information processing.

In the last article I wrote about how services sectors process information to give their organization an advantage over other competitors that do not use technology as effectively as they do.

This idea of organizational information transformation maps directly to our definition of knowledge work.

Knowledge work is what is driving information processing in these organizations. Further, if technology can accelerate information processing tasks, they can also be considered knowledge work accelerators.

In the next article I further expand on the idea of "information transformation as a competitive edge", and how information transformation is directly linked to enabling growth in an organization.

information transformation is the competitive edge to be invested in