2. Intellectual Capital Organization
Tehran University
Intellectual Capital Organization
Akbar Roshanzamir
Master student of HR in Management Faculty

3. “Intellectual capital is like a newly discovered, still uncharted ocean, and few executives understand its dimensions or how to navigate it.”
- Thomas Stewart

4. What is Intellectual Capital?
“Intellectual material - knowledge, information, intellectual property and experience - that can be put to use to create wealth” – Thomas Stewart “Representation of the financial value that human innovations, inventions, and intelligence bring to a business enterprise.” Source: H.P. Agency

5. Intellectual Capital Knowledge with potential for value
Example: Ideas in people, processes and customers
Intellectual Assets Knowledge providing value
Example: Implemented know-how
Intellectual Property Knowledge articulated with legal ownership
Examples: Patents, trademarks, trade secrets and copyright

6. “In many cases, knowledge firms such as Microsoft, Xerox, Dow Chemical, Hewlett-Packard, Eastman Chemical and others have their marketplace value at a price far higher than their balance sheets warrant”
- Sullivan

7. “A company’s value is more than the tangible assets, the source of its value and wealth is no longer the production of material goods but the creation and manipulation of its intangible assets”
- Goldfinger

8. Skandia Concept of Intellectual Capital
Market Value
Financial Capital
value of all physical and monetary assets
Intellectual Capital
Human Capital
‘thinking’
competence (knowledge and skills)
attitude (motivation, behaviour, conduct)
intellectual agility (innovation, imitation, adaptation)
Structural Capital
‘non-thinking’
Customer (Relationship) Capital
customers, suppliers, shareholders,
alliance partners, other stakeholders
Organisational Capital
infrastructure
processes
culture
Innovation Capital
renewal and development value
Process Capital
Intellectual Property
Intangible Assets
Developed by Leif Edvinsson

9. Adam and Oleksak Concept of Intellectual Capital
Market Value
Financial Capital
Intellectual Capital
Human
Capital
Structural Capital
Relationship Capital
Business Model
Management
Intellectual Property
Network
Employees
Processes
Brand
Customers

10. Current Concept of Intellectual Capital
Market Value
Financial Capital
Intellectual Capital
Human
Capital
Structural Capital
Relationship Capital
Spiritual
Capital
Business Model
Management
Intellectual Property
Network
Employees
Processes
Brand
Customers

11. Human Capital
This indicates tacit knowledge, skills, abilities and experience embedded in individuals within an organization. It stands out as collection of competencies based on skills, knowledge, abilities including leadership qualities of management and general attitudes characterized by motivation in the firm as well as intellectual agility for adaptation, innovation and cross-fertilization.

12. Structural Capital
It represents knowledge and rules embedded within organizational routines, including mechanisms and structures of the organization, assets linked to methodologies, technologies and processes, licenses, patents, trademarks, research and development strength, in addition to architectural competencies which enable a firm to integrate component competencies in new and flexible ways and build new competencies in accordance with recommendation or requirements.

13. Relational Capital
This involves every existing business network linking an organization to partners (distributors, suppliers and alliance associates) at higher and lower regions of its value stream; the scope of organizational and product brand, corporate image and perceptible reputation; in addition to building blocks of customer base, customer loyalty, customer-centricity quotient and market connectivity.

14. Spiritual Capital
This stands for virtues, divine principles, extraterrestrial guidance and faith which operate within an organization.

15. Business Model
This is a scheme showing how a firm intends to provide offerings and obtain revenue in return. It’s characterized by competitive ability, market control and business development strength.

16. “There is no other kind of capital that really works without an underlying base of spiritual capital.” - Zohar D. and Marshall I.

18. Intellectual Capital Management Evaluation Guide
Intellectual Property Management
IC Value
Creation
Intellectual Assets/ Knowledge
Management
Strategic IC
Management
IC Value
Management
Managing IC
Creation
IC Value
Extraction
Source: Canadian Institute of Chartered Accountants

19. Determinants of Value Creation
Capacity
Value Creation
Formula
Value Creation for
Key Stakeholders
Value Creation
Reality
Value Realization
Formula
Value Creation
Analysis
Value Stream
Modeling

21. Mining Intellectual Capital
Value Creation
Value Extraction
Human
Capital
Intellectual
Assets
Intellectual Property

22. Why should a firm establish Intellectual Asset Strategy?
It drives management activity
It facilitates value extraction process
It enhances profitability
It boosts research and development

23. “Approximately 70% of the asset value of firms on the NYSE is derived from their intellectual capital. In this information age, as business value continues to accrue to “soft” assets such as business processes, trade secrets, and know-how and away from physical forms such as property and equipment, companies are increasingly aware of the need for intellectual asset protection.”
- Ian Reid

24. The Focus of Intellectual Asset Strategy
Positioning as framework to ensure IP activities of a firm is consistent with corporate strategy, business strategy in addition to research and development strategy.
Creating Competitive Advantage:
Early recognition
Market penetration
Market control
Pricing premium

25. Types of Intellectual Asset Strategies
Defensive and Offensive Strategies for attaining the following:
Design Freedom
Market Freedom

26. Value Extraction Strategies
Licensing
Franchising
Combination of Strategic Alliances
Divestment and Spin-Off
Financing Options
Merger and Acquisition

27. The Value of IP to a firm
Create Competitive Advantage: Block competitors, exploit new market opportunities, reduce risks and build loyalty.
Establish Proprietary Knowledge: Protect technologies and business techniques, enhance research and development, improve effectiveness of branding, anticipate shifts in technology and market.
Boosts Financial Performance: Obtain new revenues from IP, attract additional capital and reduce cost.

28. A Generic IP Management System, Functions and Decision Processes
Patent
portfolio
database
Budget & patenting fee decision
Oversight of innovation process
Generating new patents
Patenting
decision
Portfolio maintenance
Valuation
Enforcement
decision
Initial valuation
decision
Competitive assessment
Business and Market
Strategy Review and
Analysis
internal source
external source
Competitive assessment database
Source of new
innovation
decision
Commercialisation
decision
Conversion
mechanism
decision

29. Steps for Managing Intellectual Asset
Portfolio Identification
Analysis and Measurement
Crafting Strategy
Implementation of Strategy
Managing
Communication
IAM Tactics
link IAM process to
Value
Extraction
IAM Value Drivers
Improved Management Decisions
Effective R&D
Lower cost
Increased Revenue
Competitive advantage

30. A veritable patent strategy positions a firm for proper patent portfolio management and unlocks great fortune.

32. Thank You