What makes the market economy superior is precisely that it organizes economic activity around information. The economic challenge of the post-capitalist society will therefore be the productivity of knowledge work and the knowledge worker. Drucker, then, continues that the organization of the post-capitalist society is a destabilizer . Alvin Toffler is another prominent advocate of the role of knowledge as a factor of production. Intangible assets like information have become the key resources.
Information increasingly substitutes for bulk raw materials, labor, and other resources.
The right knowledge inputs can reduce labor requirements, cut inventory, save energy, save raw materials, and reduce the time, space, and money needed for production. Society has now come to recognize that knowledge itself is a factor of production. Knowledge can be in the mind of a worker, embodied in software or in the working of the computer itself. Brought to the production process, it adds value. The nature of capital is changing.