See a discussion of this at the IC Knowledge Center:

1. Identifying and measuring the
unique IC of a company

2. Investment patterns shifting…
Intangible capital
•Computerized
information
– Software
– Databases
•Innovative property
– R&D, broadly
defined
– Copyrights and
licenses
– Designs
Intangible vs. tangible investment rate •Economic
rises over time in the United States competencies
– Marketing and
branding
– Strategic firm
practices
Source: Corrado and Hulten (2010). Last point plotted is 2007.
www.conference-board.org/data/intangibles/

3. …but the investments are invisible
Intangibles information gap
Intangible book value
Tangible book value
Source: Ocean Tomo

4. “When the map and the territory
don’t agree, always believe the
territory”
Gause and Weinberg
describing Swedish Army Training

5. Intangible capital territory
Human
Capital
Employees collaborating together
and with external partners
Relationship
Strategic to create re-usable knowledge, Capital
Capital designs and processes
that meet market needs via
a viable business model
Structural
Capital

6. Identifying and measuring the
unique IC of a company
Example of a software and
service company in the healthcare
field

7. Questions to identify core IC
• What do you do to create value and get paid by
your clients (strategic capital)?
• What are the key processes and knowledge
that support the model (structural capital)?
• Who are the key partners that support the
model (relationship capital)?
• What are the key competencies your people
need to support the model (human capital)?
• How do these pieces fit together and link to a
market (strategic capital)?

8. How do you get paid?
Strategic Capital

9. What’s your key technology/IP?
Structural Capital

10. What are the key processes
supporting this business model?
Structural Capital

11. Partners and Customers?
Relationship Capital

12. …and core competencies?
Human Capital

13. How does it
all fit together
and link with
the market?
Strategic
Capital

14. Stakeholders assessment
Performance Areas Score Range
1-Management 3.40 Average
Hummn
2-Employees 3.60 Above Average
3-Processes/Systems/IT 3.39 Average
Structural
4-Marketing and Sales Processes 3.60 Above Average
5-Technology/IP 3.74 Above Average
6-Customer Base 3.53 Above Average
Relationship
7-Network/Non-Customer Relationships 3.21 Average
8-Brand 3.18 Average
9-Business Model 3.40 Above Average
Strategic
10-External Factors 3.97 Above Average

15. …visual report of scoring
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
Human Capital Structural Relationship Strategic
Capital Capital Capital

16. Another example
Healthcare Staffing Company

17. Knowledge
Factory

18. IC Assessment
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
Human Structural Relationship Strategic
Capital Capital Capital Capital

19. More resources
Methodology ICValueDrivers.com
Book IntangibleCapitalBook.com
Articles/Blog SmarterCompaniesBlog.com
Community ICKnowledgeCenter.com
Company TrekConsulting.com
Mary Adams 781-729-9650
adams@i-capitaladvisors.com