This document discusses intellectual capital and its importance for organizations. It defines intellectual capital as comprising of human capital, structural capital, and relational capital. Human capital refers to the skills and knowledge of employees. Structural capital includes organizational processes, technologies, and intellectual property. Relational capital involves relationships with customers, partners, and brands. The document outlines various frameworks for assessing and managing intellectual capital to create value for organizations. It emphasizes the need for intellectual asset strategies to protect proprietary knowledge, gain competitive advantages, and boost financial performance.

2. Intellectual Capital Organization
Akbar Roshanzamir
Master student of HR in Management Faculty
Tehran University

3. “Intellectual capital is like a newly
discovered, still uncharted ocean, and
few executives understand its
dimensions or how to navigate it.”
- Thomas Stewart

4. What is Intellectual Capital?
“Intellectual material - knowledge, information, intellectual
property and experience - that can be put to use to create
wealth” – Thomas Stewart
“Representation of the financial value that human innovations,
inventions, and intelligence bring to a business enterprise.”
Source: H.P. Agency

5. Intellectual Capital
Knowledge with potential for value
Example: Ideas in people, processes and customers
Intellectual Assets
Knowledge providing value
Example: Implemented know-how
Intellectual Property
Knowledge articulated with legal ownership
Examples: Patents, trademarks, trade secrets and copyright

6. • “In many cases, knowledge firms such as
Microsoft, Xerox, Dow Chemical, Hewlett-
Packard, Eastman Chemical and others have
their marketplace value at a price far higher
than their balance sheets warrant”
• - Sullivan

7. “A company’s value is more than the tangible
assets, the source of its value and wealth is no
longer the production of material goods but
the creation and manipulation of its intangible
assets”
- Goldfinger

8. Skandia Concept of Intellectual Capital
Market Value
Financial Capital
value of all physical and monetary assets
Intellectual Capital
Human Capital
‘thinking’
• competence (knowledge and skills)
• attitude (motivation, behaviour, conduct)
• intellectual agility (innovation, imitation, adaptation)
Structural Capital
‘non-thinking’
Customer (Relationship)
Capital
customers, suppliers, shareholders,
alliance partners, other stakeholders
Organisational Capital
• infrastructure
• processes
• culture
Innovation Capital
renewal and development value
Process Capital
Intellectual Property Intangible Assets
Developed by Leif Edvinsson

9. Adam and Oleksak Concept of Intellectual Capital
Market Value
Intellectual CapitalFinancial Capital
Human
Capital
Structural
Capital
Relationship
Capital
Business Model
Management
Employees Processes
Intellectual
Property
Customers
Brand
Network

10. Current Concept of Intellectual Capital
Market Value
Intellectual CapitalFinancial Capital
Human
Capital
Structural
Capital
Relationship
Capital
Spiritual
Capital
Management
Employees Processes
Intellectual
Property
Customers
Brand
Network
Business
Model

11. Human Capital
This indicates tacit knowledge, skills, abilities and
experience embedded in individuals within an
organization. It stands out as collection of
competencies based on skills, knowledge, abilities
including leadership qualities of management and
general attitudes characterized by motivation in
the firm as well as intellectual agility for
adaptation, innovation and cross-fertilization.

12. Structural Capital
It represents knowledge and rules embedded
within organizational routines, including
mechanisms and structures of the organization,
assets linked to methodologies, technologies and
processes, licenses, patents, trademarks, research
and development strength, in addition to
architectural competencies which enable a firm
to integrate component competencies in new and
flexible ways and build new competencies in
accordance with recommendation or
requirements.

13. Relational Capital
This involves every existing business network linking
an organization to partners (distributors,
suppliers and alliance associates) at higher and
lower regions of its value stream; the scope of
organizational and product brand, corporate
image and perceptible reputation; in addition to
building blocks of customer base, customer
loyalty, customer-centricity quotient and market
connectivity.

14. Spiritual Capital
This stands for virtues, divine principles,
extraterrestrial guidance and faith which
operate within an organization.

15. Business Model
This is a scheme showing how a firm intends
to provide offerings and obtain revenue in
return. It’s characterized by competitive
ability, market control and business
development strength.

16. “There is no other kind of capital that really
works without an underlying base of
spiritual capital.”
- Zohar D. and Marshall I.

18. Intellectual Capital Management Evaluation Guide
Intellectual
Property
Management
Intellectual Assets/
Knowledge
Management
Managing IC
Creation
IC Value
Creation
IC Value
Management
IC Value
Extraction
Strategic IC
Management
Source: Canadian Institute of Chartered Accountants

19. Determinants of Value Creation
Value Creation
Formula
Value Realization
Formula
Value Creation
Capacity
Value Creation for
Key Stakeholders
Value Stream
Modeling
Value Creation
Reality
Value Creation
Analysis

21. Mining Intellectual Capital
Human
Capital
Intellectual
Assets
Intellectual
Property
Value Creation Value Extraction

22. Why should a firm establish
Intellectual Asset Strategy?
i. It drives management activity
ii. It facilitates value extraction process
iii. It enhances profitability
iv. It boosts research and development

23. “Approximately 70% of the asset value of firms on
the NYSE is derived from their intellectual
capital. In this information age, as business value
continues to accrue to “soft” assets such as
business processes, trade secrets, and know-how
and away from physical forms such as property
and equipment, companies are increasingly
aware of the need for intellectual asset
protection.”
- Ian Reid

24. The Focus of Intellectual Asset Strategy
 Positioning as framework to ensure IP activities of a firm is
consistent with corporate strategy, business strategy in addition to
research and development strategy.
 Creating Competitive Advantage:
a. Early recognition
b. Market penetration
c. Market control
d. Pricing premium

25. Types of Intellectual Asset Strategies
Defensive and Offensive Strategies for attaining
the following:
i. Design Freedom
ii.Market Freedom

26. Value Extraction Strategies
• Licensing
• Franchising
• Combination of Strategic Alliances
• Divestment and Spin-Off
• Financing Options
• Merger and Acquisition

27. The Value of IP to a firm
 Create Competitive Advantage: Block competitors,
exploit new market opportunities, reduce risks and
build loyalty.
 Establish Proprietary Knowledge: Protect
technologies and business techniques, enhance
research and development, improve effectiveness of
branding, anticipate shifts in technology and market.
 Boosts Financial Performance: Obtain new revenues
from IP, attract additional capital and reduce cost.

28. Oversight of
innovation
process
Patenting
decision
Generating
new patents
Portfolio
maintenance
Competitive
assessment
Valuation
Budget &
patenting fee
decision
Enforcement
decision
Patent
portfolio
database
Business and Market
Strategy Review and
Analysis
Commercialisation
decision
Conversion
mechanism
decision
Source of new
innovation
decision
Initial valuation
decision
Competitive
assessment
database
internal
source external
source
A Generic IP Management System,
Functions and Decision Processes

29. Steps for Managing Intellectual Asset
Portfolio Identification
Analysis and Measurement
Crafting Strategy
Implementation of Strategy
Managing
Communication
IAM Value Drivers
Improved Management Decisions
Effective R&D
Lower cost
Increased Revenue
Competitive advantage
IAM Tactics link IAM process
to
Value
Extraction

30. A veritable patent strategy positions a firm
for proper patent portfolio management
and unlocks great fortune.

32. Thank You
AKBAR.ROSHANZAMIR@UT.AC.IR