Summary: Intellectual Capital - Leif Edvinsson and Michael S. Malone

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DRM:
Watermark

Publication Year:
2013

ISBN-13: 9782806247377

This work offers a summary of the book “INTELLECTUAL CAPITAL: Realizing Your Company’s True Value by Finding Its Hidden Brainpower” by Leif Edvinsson and Michael S. Malone.<br>Intellectual capital represents the difference between a company’s balance sheet and its market value. It is frequently referred to as indirect assets, intangibles or goodwill, and consists of organizational knowledge, customer loyalty and satisfaction, a company’s ability to innovate and bring new products to market, employee morale and skills, patents, trademarks and a number of other factors. <br>The fact that traditional accounting methods fail to accurately capture intellectual property assets results in a significant management question: “How can management decisions be consistently made which will enhance the company’s intellectual capital base rather than detract from it?” Businesses need to develop a framework to measure intellectual capital, to track and improve it.<br>Edvinsson and Malone suggest a blueprint for this framework, by dividing intellectual capital into segments and explaining how best to assess them. <br>In short, Intellectual Capital demonstrates that small details that are often forgotten can be measured and built up into a business picture that’s vital knowledge for future business decisions.<br>