This Briefing gives non-technical managers
a practical overview of “intellectual capital” -- what it is,
why companies are paying closer attention to it, how it’s being measured
and managed. Intellectual capital is human capital plus “structural”
capital (e.g. databases, documents). The Briefing is unique because it
explains and illustrates the topic from four different perspectives:
information technology, such as “groupware”
and the Internet
information content, such as public relations, information
storage and retrieval
human resources, including leadership, organization
structure, and employee development
management, including financial reporting, investment
decisions, and strategic planning.
Of particular interest to CFOs is the section on measuring
intellectual capital, which describes eleven different techniques, ranging
from the relatively mundane (business process auditing) to the more exotic
(“calculated intangible value”). The Briefing also outlines
the activities of the Securities and Exchange Commission and the American
Institute of Certified Public Accountants on the issue.
Applications
Part I of the Briefing explains the concept of intellectual capital and
illustrates how ten different companies are using it. Applications include:
Skandia Insurance: educating investors
Canadian Imperial Bank of Commerce: developing human
capital
National Semiconductor: speeding up product development
Xerox: creating world class customer service
Dow Chemical: increasing cash flow from intellectual
property
Federal Express: creating barriers to entry
St. Luke's: attracting clients and employees
Booz, Allen, Hamilton: maximizing brain power
Buckman Laboratories: getting close to the customer
Tools & techniques
Part II provides a layman’s description of tools and techniques being
used to manage intellectual capital. It also outlines why different companies
approach the issue in different ways, how the tools of different functional
areas complement each other, and what are generally recognized as success
factors.
A new way of publishing
Almost as interesting as the content is the way in which the Briefing
was published. In addition to reading a printed document, purchasers can:
explore the topics in PART I in greater depth through
Web links to Internet sources;
share comments with the author and other readers;
order copies of commercially published source documents
from the Corporate Librarian™ at the Montague Institute research
service.
Says publisher Jean Graef, “The printed document
is only the tip of the iceberg. It’s one entry point to a publishing
web, with some elements available to the public, others available to purchasers,
and still others available only to our own employees. We call this knowledge
base publishing. It not only makes accessible much of the background material
that is normally buried, it also leverages the research effort across
a broader range of users and applications. It’s already making our
professional staff much more effective, and it’s an added service
we can offer our clients.”
