Knowledge and Intellectual Capital

Résumé du document

There are now more than 30 different methods for valuating and measuring Intellectual Capital (IC). In many articles in scientific journals authors from all over the world discuss the growing importance of intangible assets on organizations and their management. Why is the scientific community recently so enthusiastic about this special topic? What is meant by Intellectual Capital, how is it measured and why? Which methods are present in the theoretical debate and how does business practice measure and value IC? In our present paper we discuss the questions above and try to find answers. After introducing the concept of Intellectual Capital we classify and describe the different types of valuation and measurement methods. In the next chapter we show the relevance of IC for business practice through two examples, and finally we discuss the existing literature and the proposed methods.

Extraits

[...] III (1994): EVA: fact and fantasy. In: Journal of Applied Corporate Finance, Vol Issue p. 71-84. Sveiby, K.E. (2002): Methods for measuring intangible assets. Available at: www.sveiby.com/portals/0/articles/intangiblemethods.htm Tully, S. (1993): The Real Key To Creating Wealth. [...]

[...] In the existing literature several authors present their methods under headings like valuation, financial valuation, measurement or assessment, without differentiating between the terms valuation and measurement. So for example, the Skandia Navigator, the Intangible Asset Monitor and the IC- index all do not measure value, despite their intentions. They use measurement methods, which do not use value scales, but use measurement scales instead (Andriessen (2004), p. 238-240). According to Andriessen, valuation requires an object to be valued, a framework for the valuation, and a criterion that reflects the usefulness or desirability of the object. [...]

[...] Within the scientific community, there is no generally accepted definition of Intellectual Capital. Stewart for example defines it as “intellectual material knowledge, information, intellectual property and experience that can be put to use to create wealth.” (Bontis (2001), p.42). For him this “packaged useful knowledge” includes an organization's processes, technologies, patents, employees' skills and information about customers, suppliers and stakeholders. Annie Brooking offers another comprehensive definition of IC: “Intellectual capital is the term given to combined intangible assets which enable this company to function.” What all common definitions agree with is that intellectual capital is not simply available, free-floating human brainpower, but something in an identifiable form that is knowledge based and useful in organizations. [...]

[...] It can be seen as the difference between net sales and the sum of operating expenses, taxes and capital charges: EVA = Net Sales Operating Expenses Taxes Capital Charges So EVA is increased, if the weighted average cost of capital is less than the return on net assets. (Bontis et al. (1999), p. 395) Some authors have suggested that EVA can be used as a surrogate measure for the stock of intellectual capital, provided that effective management of knowledge increases EVA. If EVA is used as a surrogate measure of IC, no specific measures of intangible assets are needed. Therefore managers are no better off understanding exactly what the company's intangible resources or their specific contribution are. (Bontis (2001), p. [...]

[...] Intellectual Capital equals the sum of the human capital and the structural capital. Skandia's value scheme (Bontis, 2001): Edvinsson and Malone recommend 112 indices to measure IC. Among them we can notice: Leadership index transmission of responsibility, annual turnover of staff, turnover, number of women in the enterprise, revenues from new customers/total revenue . Skandia Navigator is a collection of critical measurements that all comprise a holistic view of performance and goal achievement. The architecture of the Skandia Navigator is simple yet very sophisticated. [...]