Intellectual Capital
We partner Intellectual Capital Sweden AB, the world's first specialist company in Intellectual Capital ratings. The proprietary tool
IC Rating™ is used to measure and describe non-financial assets that are not reported or described in traditional financial statements, but that are of critical importance to the long-term success of an organization. Whether you are looking for growth, profitability or both, it is your non-financial assets that will deliver it (many non-financial asets are unmanaged). '
FAQ's
Our unique platform for analysis can be used to drive many key issues within organizations: from organizational effectiveness to corporate culture.
Based on Mr. Leif Edvinsson´s thoughts and theories on Intellectual Capital, a pragmatic and concrete platform for measuring and describing an organisation's non-financial assets has been developed - IC Rating. Board members and managers presently use IC Rating primarily for valuation, benchmarking, organisational development, and/or external reporting.
As of today, some 400 projects have been performed across the world, and the platform is licensed to partners on four continents.
“Why do companies really need to identify, measure and develop intangibles?”. The answer is “To improve company financial performance”.
Research shows:
1. Majority of CEO's believe Intellectual Capital Reporting will increase.
2. 75% of companies are already tracking 2 or more intangibles.
3. Agreed that knowledge measurement improves organisational performance.
4. The process of identifying and measuring intellectual capital is as important as the information received from the measures.
What is Intellectual Capital (IC)?
The IC field is awash with different terms, concepts and metaphors that can often be more confusing than enlightening (see, e.g. Marr, 2005). What is for instance the difference between intangible assets and IC? Do non-financial assets and immaterial assets mean the same?
A Common Definition:
'All factors critical to an organization’s future success that are not shown in the traditional balance sheet'.
Traditionally, most methods used to analyze an organization are primarily based on financial figures. The problem with traditional accounting is that it deals with information in the past. Now, the information era is replacing the industrial era. Evidence of this is that an increasing share of company assets cannot be found in the balance sheet, for example patents, customer base, brand, etc. (Andriessen, 2004). Knowledge is the main source of competitive advantage; the management of a company is becoming more about managing people than it is about managing physical and monetary assets. Today’s company's show only a limited amount of their assets on their balance sheet relative to the value they produce and they often apply different strategies than more traditional companies.
Identifying and managing intellectual capital usually focuses on three main areas, Human Capital, Structural Capital and Relational Capital.
Intellectual Capital References:
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