Identifying and measuring ic
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This document discusses identifying and measuring a company's intangible capital (IC). It begins by explaining the different types of intangible capital: human capital (employees), structural capital (processes, systems, intellectual property), and relationship capital (partners, customers). It then provides examples of questions to help identify a company's core IC in each area. The document concludes by showing how IC assessment can be visualized and used to evaluate different areas of a company's performance.
Identifying and measuring ic
- 1. Identifying and measuring the unique IC of a company
- 2. Investment patterns shifting… Intangible capital •Computerized information – Software – Databases •Innovative property – R&D, broadly defined – Copyrights and licenses – Designs Intangible vs. tangible investment rate •Economic rises over time in the United States competencies – Marketing and branding – Strategic firm practices Source: Corrado and Hulten (2010). Last point plotted is 2007. www.conference-board.org/data/intangibles/
- 3. …but the investments are invisible Intangibles information gap Intangible book value Tangible book value Source: Ocean Tomo
- 4. “When the map and the territory don’t agree, always believe the territory” Gause and Weinberg describing Swedish Army Training
- 5. Intangible capital territory Human Capital Employees collaborating together and with external partners Relationship Strategic to create re-usable knowledge, Capital Capital designs and processes that meet market needs via a viable business model Structural Capital
- 6. Identifying and measuring the unique IC of a company Example of a software and service company in the healthcare field
- 7. Questions to identify core IC • What do you do to create value and get paid by your clients (strategic capital)? • What are the key processes and knowledge that support the model (structural capital)? • Who are the key partners that support the model (relationship capital)? • What are the key competencies your people need to support the model (human capital)? • How do these pieces fit together and link to a market (strategic capital)?
- 8. How do you get paid? Strategic Capital
- 9. What’s your key technology/IP? Structural Capital
- 10. What are the key processes supporting this business model? Structural Capital
- 11. Partners and Customers? Relationship Capital
- 12. …and core competencies? Human Capital
- 13. How does it all fit together and link with the market? Strategic Capital
- 14. Stakeholders assessment Performance Areas Score Range 1-Management 3.40 Average Hummn 2-Employees 3.60 Above Average 3-Processes/Systems/IT 3.39 Average Structural 4-Marketing and Sales Processes 3.60 Above Average 5-Technology/IP 3.74 Above Average 6-Customer Base 3.53 Above Average Relationship 7-Network/Non-Customer Relationships 3.21 Average 8-Brand 3.18 Average 9-Business Model 3.40 Above Average Strategic 10-External Factors 3.97 Above Average
- 15. …visual report of scoring 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 Human Capital Structural Relationship Strategic Capital Capital Capital
- 16. Another example Healthcare Staffing Company
- 17. Knowledge Factory
- 18. IC Assessment 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 Human Structural Relationship Strategic Capital Capital Capital Capital
- 19. More resources Methodology ICValueDrivers.com Book IntangibleCapitalBook.com Articles/Blog SmarterCompaniesBlog.com Community ICKnowledgeCenter.com Company TrekConsulting.com Mary Adams 781-729-9650 adams@i-capitaladvisors.com