INTELLECTUAL CAPITAL &

KNOWLEDGE MANAGEMENT
Fachochshule Frankfurt an
Main
March -2008, Sept.-2009
18th-27th, March-2013
Prof. Dr. Irene Martn Rubio
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OUTLINE

INTELLECTUAL CAPITAL &

KNOWLEDGE MANAGEMENT
Introduction

1.

Knowledge Age & Innovation

1.1. The concept of Organization

Knowledge Management

2.

Data, Information, Knowledge, Competence

Spiral of Knowledge
Tacit vs. Explicit Knowledge
CKO: Chief Knowledge Officer

Organizational Learning

3.

Learning Organization vs. Organizational Learning

Single Loope Learning vs. Double Loop Learning
Activities of Organizational Learning
Learn to Learn, Routines, Trust, Team Management

Intellectual Capital

4.

Valuation of the Firm

Components of the Intellectual Capital Report
Intellectual Capital Navigator

Why are we here?

Duplicity Movie Trailer
http://www.youtube.com/watch?v=3KqDuvMANb8
Duplicity- Why are we here?
http://www.youtube.com/watch?v=GfoSukpWVos

INTRODUCTION

Knowledge Age & Innovation

The Coming of New Organizations

1.1. The concept of Organization

Why study organizations?

Effectiveness
Organizational Structure and Organizational Design
Organizational Design Theory
Contemporary Trends

21st Century Innovation Management

The high demand for new ideas and new

product concepts in the knowledge economy
posed a major challenge to the
organizational innovative ability.

New sources of growth:

Knowledge-based capital

http://www.oecd.org/sti/industryandglobalisation/newsources
ofgrowthknowledge-basedcapital.htm
http://ec.europa.eu/invest-inresearch/policy/capital_report_en.htm
http://www.research-in-germany.de/main/researchlandscape/rpo/networks-and-clusters/41830/10-2-leadingedge-cluster-competition.html

KNOWLEDGE AGE

We soon discovered how essential it is for

a multibusiness company to become an
open, learning organization.
The ultimate competitive advantage lies in
an organizations ability to learn and to
rapidly transform that learning into action.
Jack Welch GE (1998)
!!!! AGILITY
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KNOWLEDGE AGE

Information and knowledge are the

thermonuclear competitive weapons of
our time. Knowledge is more valuable
and more powerful than natural
resorces, big factories, or fat bankrolls
Thomas A. Stewart Intellectual Capital

KNOWLEDGE AGE
INNOVATION MANAGEMENT

LIBERATING INNOVATION FROM BEING THE

FUNCTION OF ONE DEPARTMENT (R&D or
NPD New Product Develpment) TO AN ACTIVITY TO
WHICH EVERYONE CONTRIBUTES.

INNOVATION MANAGEMENT PROGRESSED INTO

MANAGING AN INNOVATION PORTFOLIO ACROSS A
SET OF DISPERSED INTERNAL AND EXTERNAL
NETWORKS.
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KNOWLEDGE AGE
SOCIAL CAPITAL & INNOVATION

Innovation Management involves knowing the skills

and competencies

of employees across the whole organization (HUMAN

CAPITAL) and
potential partners (SUPLIERS & CUSTOMERSRELATIONAL CAPITAL)
to forge the alliances that facilitate the innovation process.

!!! Enabling allocation of human and financial

resources to meet stratetic prioriries

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KNOWLEDGE AGE

Success in the Knowledge Age demands that we have the

forsight and courage to let go of the Newtonian clockwork or
machine metaphor on which most of our organizations are still
founded and embrace the logic of self-organization or
unmanagement.

INDUSTRIAL AGE: Control and dissemination of explicit

knowledge facts,instructions, rules and procedures- by the
privileged few.

Organizations as machine.
Hierarchical and Bureacratic Organizations
Machine logic (control and predictability logic

KNOWLEDGE AGE: Tacit Knowledge: expertise, reasoning,

judgment and insight.

Organizations as collective brain power (SOCIAL CAPITAL)

Bio-logic
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KNOWLEDGE AGE ORGANIZATIONS

Bio-logic
Social organizations are incompatible with formality,
distance and contractualism if we want to explore
and explote creativity (the human nature).
Social organizations proceed smoothly onl with
intimacy, subtlety and trust.
PEOPLE are not simple a means of production.
They are biological systems constantly seeking to
fulfill their needs and aspirations.

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KNOWLEDGE AGE

We have entered and era where knowledge

is the primary source for wealth creation.
We now need to be comfortable with
perceptual change, uncertainty, and
complexity of our own making.
It requires an in-depth understanding of our
evolved human qualities and the quest of
serendipitous self-organizing systems or
bio-logic.

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The coming of New Organization

(P. Drucker)

Information & Communication

Technology
Little Middle Management
A good deal of work is done in ad hoc
teams as required by every project
Flat Structures

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The coming of New Organization

(P. Drucker)

Evolutions in the concept and structure of organizations

Beguining XX century

1.

G. Siemens, Germany
Differentiation management from ownership

2. 20s: Modern Corporation

Du Pont, General Motors
Command-and-control organization
Organization of departments and divisions
3. 90s
The organization of knowledge specialists
CKO (Chief Knowledge Officer
Data, Information, Action, Competitiveness
Motivation, Imagination, Creativity : HUMAN NATURE
Increasing intellectual capital cannot be managed in the traditional
sense, sit all sorts of new-age technologies and associated elaborate
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metholodgies

KM, IC, OL
KM

OL
Organizational
Learning

Knowledge
Management

IC
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Intellectual Capital

INTELLECTUAL CAPITAL &

KNOWLEDGE MANAGEMENT
Introduction

1.

Knowledge Age

Knowledge Management

2.

Data, Information, Knowledge, Competence

Spiral of Knowledge
Tacit vs. Explicit Knowledge
CKO: Chief Knowledge Officer

Organizational Learning

3.

Learning Organization vs. Organizational Learning

Single Loope Learning vs. Double Loop Learning
Activities of Organizational Learning
Learn to Learn, Routines, Trust, Team Management

Intellectual Capital

4.

Valuation of the Firm

Components of the Intellectual Capital Report
Intellectual Capital Navigator
Case Studies

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Accounting
Balance Sheet
ASSETS = Equity+Liability

Assets

Equity

Non current
assets

Liabilities

Current Assets
Application of
resources
INVESTING

Non-current Liabilities

Current Libilities

Source of financial
resources
FINANCING

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NON-CURRENT ASSETS

TANGIBLE ASSETS

Land, building, furniture, equipment

Physical substance. This assets can be bought
or manufactured by the company

INTANGIBLE ASETS

Assets without physical substance

RESEARCH & DEVELOPMENT

Research, development, patent

GOODWILL
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GOODWILL

It is an intangible asset that compromises the value

of all favourable attributes related to a business
enterprise such as exceptional management, skilled
employees, highly quality products, good and faithful
customers which are very difficult to valuate
separetely.
It is calculated as the excess of the cost over the fair
market value of net assets acquired.In general, goodwill is not amortized because it is
considered to have limited life, but it is reviewed for
impairment every year.
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Intangible Assets

Intangible Assets

Often fuzzy property rights

Interactions Teams & equipments& clients

Infrequent market transactions

Low General Awareness of transaction
oportunity
High Possible Strategic Value
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INTELLECTUAL CAPITAL

How to manage goodwill? IC-OL-KM

How to manage intangible assetss?
How to manage innovation?
KM: KNOWLEDGE MANAGENT

How to measure IC?

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