INTELLECTUAL CAPITAL ทุนทางปัญญา Intellectual Capital KM 743 ผศ. ดร. ปิติพงษ์ ยอดมงคล Asst. Prof Dr. Pitipong Yodmongkol

INTELLECTUAL CAPITAL

ทุ�นทุางปั�ญญา Intellectual Capital

KM 743

ผศ.ดร.ปั ติ�พงษ์� ยอดมงคลAsst. Prof Dr. Pitipong Yodmongkol

วิ�ทุยาล�ยศ�ลปัะ สื่��อ และเทุคโนโลย" มหาวิ�ทุยาล�ยเชี"ยงใหม&

College of Arts Media and Technology, Chiang Mai University

IC Roots

Human capital & Structural capital were launched

SKANDIA Model & Report

Intangible Assets Monitors (Sveiby 1997)

1. Individual Competencies – skills, education, experience, attitude

2. Internal Structure – patent, concept, model, system, IT network

3. External Structure – Relationship with customers and suppliers, brand names,

trademarks, image

Skandia & Intellectual Capital

• During the1980s, Skandia found that it’s competitive advantages and profit came from “New Factors” (individual talent, synergistic market relationships, and the ability to manage the flow of competence) more than “old factors” (buildings, equipment, inventories)

• Skandia realized that “if we can access and manage the new factors, we can discover the way to sustain our competitive advantages” (Edvinsson & Malone, 1997). But how?

• 1991 Leif Edvinsson was appointed by Skandia as the world’s first director of Intellectual Capital.

Skandia & Intellectual Capital

• Leif Edvinsson was assigned to develop manage and measure Skandia’s IC and make an IC report.

• Three fundamental (Skandia)

1. Intellectual Capital is supplementary, not subordinate, information to financial information

2. Intellectual Capital is non-financial capital, and represents the hidden gap between market value and book value.

3. Intellectual Capital is a debt issue, not an asset issue.

Edvinsson defined Intellectual Capital as:“Intellectual Capital is the possession of the knowledge, applied experience, organizational technology, customer relationships and professional skills that provide Skandia with a competitive edge in the market.”

Skandia & Intellectual Capital

• How to grow and develop intangibles?– Identify intangible: the list of more that 50 items that valuable for company.– The 50 items were reduced to two items.– Human Capital + Structural Capital = IC for Skandia

• Human Capital. The combined knowledge, skill, innovativeness, and ability of the company’s individual employees to meet the task at hand. It also includes the company’s values, culture and philosophy. Human capital cannot be owned by the company.

• Structural Capital. The hardware, software, databases, organizational structure, patents, trademarks, and everything else of organizational capability that supports those employees’ productivity – in a word, everything left at the office when the employees go home. – Structural capital also includes customer capital, the relationships developed with key

customers. Unlike human capital, structural capital can be owned and thereby traded.

IC: Skandia model

IC: Skandia model• The model illustrates the major building

blocks of intellectual capital and builds on a reduction approach.

• This approach starts with the stock market value and deducts the financial capital. This leaves intellectual capital as the balancing item.

IC: Skandia model

the two building blocks of human capital and structural capital. • Deducting the value of the human capital

from the intellectual capital leaves structural capital as the balancing item.

• Within structural capital, the major component left behind when the employees go home is customer capital.

IC: Skandia model• Within organizational capital the

value of processes could be extracted leaving innovation capital as the balancing value.

• Within the innovation capital it is possible to identify the value of intellectual properties such as patents, trade marks, etc. and leaves intangible assets as the balancing value.

Scandia Model

The IC Distinction Tree MarketValue

FinancialCapital

IntellectualCapital

HumanCapital

StructuralCapital

CustomerCapital

OrganisationalCapital

InnovationCapital

ProcessCapital

IntellectualProperty

IntangibleAssets

Think• Competence• Attitude• Intelligence

Agility

Create for tomorrow

InternalExternal

Not Think• Relationship• Organization• Renewal &

Development

Some of Know How

(today)

Skandia & Intellectual Capital

• Spring 1993, Skandia published its first (internal) Intellectual Capital Report, in which the hidden capital was revealed.

• 1995 Skandia published Visualizing Intellectual Capital, (Edvinsson received more than 500 requests to put together IC-reports from all over the world).

• 1998 Skandia published Human Capital in Transformation, (Edvinsson received five times higher of the requests for IC report from all over the world).

1. Human Focus: consists of the competence and capabilities of employees and the commitment of the company to keep these skills updated.

2. Customer Focus: consists of the quality of the external relationships and the commitment of the company to maintain these relationships.

3. Process Focus: indicates the efficiency of the work processes and the commitment of the company to improve the quality of these processes.

4. Innovation Focus: indicates how well a company is preparing itself for the future.

Skandia NavigatorHow to measure IC?Each focus area is translated into a series of indicators.Reporting with numbers makes information more tangible and dynamic.

Skandia Navigator

• Edvinsson is the development of a universal instrument for the measurement of intellectual capital – he was able to bridge the gap between theory and practice.– his experience at Skandia made the concept more robust and better applicable in

practice.– He identify a set of indicators that can be used by all organizations and recognize

that all organizations need an additional set of specific indicators. – Later; Edvinsson presents an inventory of 111 indicators which are applicable to

all organizations.

Intellectual Capital

• The IC literatures draw on the aspects of the resource-based perspective, the practical application and a pragmatic approach that provides a basis for practical managerial tools and methodologies to an organization

(Bontis, 1996, Roos et al., 1997, Bontis et al., 1999, & Petty & Guthrie 2000).

• The IC is extremely flexible and context specific. It also provides a holistic picture and allows an organization to address the issues surrounding the true drivers of value creation.

IC STANDARDโครงสร�างมาตราฐาน IC

An emerging standard

• First generation of IC: developing many different models and methods

• Second generation: trying to bring them together in one single model

Many different Model & Method

IC Standard

An emerging standard• Although each author uses its own denotations, the different

subsets make similar distinctions. More and more, these three sub classes are referred to as human capital, structural capital, and relational capital

(Bontis, 2002; CEC, 2006).

• Human Capital: This first class represents anything related to the people within the organization, the employees, their tacit knowledge, skills, experience and attitude.

• Structural Capital: This second class represents the “tangible” intangibles. Everything of value that stays behind, after the employees have left the organization, like codified knowledge, procedures, processes, goodwill, patents, and culture.

• Relational Capital: This third class represents the relationship with customers, suppliers and other external stakeholders. The value of customer capital is mainly determined by the extent to which an organization is able to maintain confidence in its reputation.

IC Standard

Intellectual Capital

Human Capital

Structural Capital

Relational Capital

Intellectual Capital

HUMAN CAPITAL

Human capital

• Human capital is defined as the collective capabilities of employees.

(ความร� � ความสามารถ ทั�ศนะคต� ความเฉลี�ยวฉลีาด คลี�องแคลี�วว�องไว)

• This asset includes experience, skills, and know-how of the employees.

• ส�นทัร�พย ทัางปั"ญญาเหลี�าน�%จะสร�างค'ณค�าให�กั�บองค กัร (Roos et al, 1997& Edvinsson, 1996)

Human Capital

Motivation

Attitude

Behavior

Competence

Skill

Knowledge

Agility

PackagingInnovatio

n

Imitation Adaptation

Conduct

Human Capital

• Competency– KNOWLEDGE – SKILL

Human Capital

• Attitude– Motivation– Conduct– Behavior

Human Capital

• Agility– Innovation– Imitation– Adaptation– Packaging

Human capital: labor categories

STRUCTURAL CAPITAL

Structural Capital Structural capital is defined as infrastructure that organizations develop to commercialize their human capital. It includes both direct and indirect support, and physical and intangible elements

(Edvinsson & Sullivan 1996)

Example:– Best Practice ขององค กัร – ส�ตร – ระบบฐานข�อม�ลี – ลี�ขส�ทัธ์ , ส�ทัธ์�บ�ตร – Brand Logo – etc., that result from the process or systems the firm has created over

time. it does not reside in the heads of the employees but remains with the organization even when they leave.

Structural Capital

Organizational capital

Organizational capital (internal). Organizational capital refers to infrastructure, processes, and culture. It consists of innovation and process capitals.

Process capital is the sum of a company’s know-how. Innovation capital includes intangible assets and intellectual property which is the source of renewal for the company.

Process capital & Intellectual property

• The process capital is perhaps the most encompassing box of the model. It consists of all internal processes (recruiting process, marketing process etc.) models (project models etc.), IT systems and documentation.

• The intellectual properties made up of patents, licenses, trademarks etc. Some would say that this is the most refined part of the structural capital, as there could be a market for this and it can be bought and sold. This could provide the company with a temporary monopoly and give the company outstanding performance over a period of time.

RELATIONAL CAPITAL

Relational capital : the relationship between organization and its stakeholders and the set of process and relationship that initiate the competitive advantage for the organization

(McElroy 2001)

Relational capital

Inside Org.

• Divisions• Departments• Colleagues• Groups

Inside Org.

• Divisions• Departments• Colleagues• Groups

Outside Org.• ลี�กัค�า• Business Partners• ชุ'มชุน• Suppliers• ร�ฐ

Outside Org.• ลี�กัค�า• Business Partners• ชุ'มชุน• Suppliers• ร�ฐ

Relational capital

the relational, or external structural capital. This consists of a company’s external relations:

(1) Their network: suppliers, distributors, lobby organizations etc. When considering a company’s network it is important to look at issues like

(1) Does the company have all the contacts needed for the organization?

(2) Are these networks being utilized in the best possible way?

(3) Does the network give access to competence, finances, media coverage, etc.?

(2) The brand. Is the company well known? Does the target group have great confidence in the company? Does the market perceive the company as having a significant competitive advantage in their brand.

Customer capital

Customer capital is defined as value of relationships that a firm builds with its customers, and which is reflected in their loyalty to the firm and/or its products.

This is in essence where your money is made, and it is one of the most important sources of competitive advantage. – How the customers perceive you therefore become very important: Do they see

you as a strategic supplier? A partner? – Are they loyal and in it for the long term?– Do you have a close relationship with them?

The more you know about your customers and the closer you are to them, the more difficult it will be for them to switch

Customer capital : system theory

IC: Value Creation, interaction between the different classes of intangibles

Pike, Fernstrom & Roos, 2005

Humancapital

The flows of Company Intellectual Capital

Systematic Approach

Financialcapital

Structural capital

Relational capital

Intellectual capital

THANK YOU