Now let’s continue some of the concepts of IC in our second part of this subject..
Elements of Intellectual capital
Many practitioners suggest that Intellectual capital consists of three elements.
Human capital, which includes experience, the know-how, capabilities, skills, and
expertise of the human members of the organization.
Structural capital (or organizational capital), which includes the systems, networks, policies, culture, distribution channels, and other “organizational capabilities” developed to meet market requirements as well as
Relational (customer) capital, which includes the connections that people outside the organization have with it, their loyalty, the market share, the level of back orders, and similar issues.
Intellectual capital can be thought of as ‘the stored knowledge possessed by an organization’. This knowledge may be tacit (personal knowledge possessed by an employee that may be difficult to express or communicate to others), in other cases it may be explicit knowledge, which is codified and stored by the organization and available to all employees. Most KM projects focus on collecting, storing and making this knowledge available. KM projects can involve a wide range of software tools and products, ranging from simple collaborative software to intranets, extranets, portals and sophisticated databases.
Leif Edvinsson is a leading expert on Intellectual Capital (IC). He was the world’s first corporate director of Intellectual Capital at Skandia in Stockholm, Sweden. He has been a key contributor to the theory of IC and oversaw the creation of the world´s first corporate Intellectual Capital Annual Report.
See you hopefully in the last part of IC and KM next week InshallaH.