Knowledge and intellectual capital – strategically very important resource, which is worth to invest and develop it.
Intellectual capital is “the complex knowledge, skills, procedures, processes, applied experience, technologies used in the organization, customer relations, occupational and professional skills that create additional value and competitive advantage in the marketplace.” (Rohr M .: K čemu je dobrý Intellectual Capital, Knowledge Management a emoční inteligence ? Deloitte, WS 15 September 2004)
Knowledge management is a means which seeks all possible ways how to use all knowledge more efectively. Benefits and investing in knowledge management and intellectual capital for the company are extensive. It is suitable that competent departments pursued in the company a consistent measurement and reporting.
Recording and measuring knowledge is nothing new and it is a long term objective of all modern companies. Data and reports about the activities of employees are nowadays recorded in the various programs and applications and further processed and archived for future use. A part of it can also be video or audio recordings, etc. The organization then analyzes the data and discusses how these information, make the most of their advantage.
Prominent economists, for example, Roos J. and G. Roos are those who believe that intellectual capital and financial capital consists of the market value of the organization.
The big problem with this thesis is that general accounting is missing a tool to express the value of the knowledge. Evidence of explicit knowledge is possible to some extent way, because they can be registered, such as registration marks, licenses etc.
Many experts have tried to calculate, at least in some way, the value of intellectual capital. One of them was James Tobin:
Tobin ratio indicator of the intellectual capital of the organization – Q. It is named after James Tobin of Yale University (1969) . It is usually counted between market and book value of the organization.
Q = asset’s market value / book value of the asset (cost of replacing assets)
Knowledge shows the maturity of the organization. High values usually have pharmaceutical and software companies. Furthermore, it can be used to value the market as a complex.
The formula is then q = market value of the entire market / common book value
The disadvantage is that indication common book value, is often beeing artificially influenced.
If Tobins indicator of intellectual capital ratio is greater than one, then the market value is higher than the book value of the assets. This shows that the market value also reflects some unmeasured, unlisted assets of the company. High Tobin ratio index encourages organizations to invest more in the capital because their value is higher than the total investment to the company. This for the theory.
Theory, literature, manuals, brochures are many. We think that consistent education at knowledge management is necessary but more importantly practice.
Before you decide for some form of measurement, whether software, application or your own internal method, try our package Tacit Minds. Our services will always move you one step closer to the realization of your plans.
/ 1 / J. Tobin: A general equilibrium approach to monetary theory, Journal of Money, Credit and banking 1, 1996