Knowledge Assets Management

Transcription

1 Theme 11 Knowledge Assets Management Spring, 2014 Sang W. KIM, Ph.D Professor, Chungbuk National University 0

2 contents 목차 1. Four Types of Knowledge Assets 1

3 2 1. Four Types of Knowledge Assets

4 1. Four Types of Knowledge Assets Experiential knowledge assets : Tacit knowledge that is built through shared hands-on experience among a firm's members and between them and its customers or suppliers. (Ex: Skills and know-how acquired and accumulated through work experiences ) Other examples include: Affective knowledge (e.g., care, love, and trust), Motor knowledge (e.g., facial expressions and gestures), Energic knowledge (e.g., enthusiasm and tension), Rhythmic knowledge (e.g., improvisation and entrainment). Because experiential knowledge assets are tacit, they are difficult to capture, evaluate, or exchange for money. Only through their own experiences can firms accumulate their own experiential knowledge assets. Their tacitness makes experiential knowledge assets firm-specific and difficult-toimitate resources that provide a sustainable competitive advantage to a firm. 3

5 1. Four Types of Knowledge Assets Conceptual knowledge assets : Explicit knowledge articulated into words numbers, and diagrams. Concepts that are held by members of a company and its customers. (Ex: corporate strategies, product concepts and designs which are possessed by members of the company, and brand equity which is perceived by customers). Since they have tangible forms, conceptual knowledge assets are easier to see than experiential knowledge assets. Still it is difficult to measure customers' and organizational members' perception. 4

6 1. Four Types of Knowledge Assets Systemic knowledge assets : Systemized and packaged explicit knowledge. (Ex: manifestly-stated technologies, product specifications, manuals, and documented and packaged information about customers or suppliers). Legally protected intellectual properties such as licenses and patents also fall into this category. Since they are most visible and easily digitized into IT, current knowledge management practices focus primarily on them. Also, they can be traded and transferred with relative ease. 5

7 1. Four Types of Knowledge Assets Routine knowledge assets : Tacit knowledge that is embedded in organizational daily practices and actions. (Ex: know-how (e.g., those in various corporate functions), organizational routines and cultures as certain patterns of thinking and action that are shared among organizational members and reinforced by daily activities). Sharing narratives and stories about their own company also helps form routine knowledge assets. Note that the routine nature may become inertia and hinder the knowledge-creating process. 6

8 1. Four Types of Knowledge Assets Fuji-Xerox Has instituted several programs regarding knowledge assets. Most interesting is the program called C-class Marketing. C stands for CEO, COO, CKO, CIO, etc., or top managers who have decision-making power. This unique program helps Fuji-Xerox sales people get access to their potential corporate clients' decision-makers by providing them with Fuji Xerox's knowledge assets, even hard-earned wisdom from its failures, accumulated over the long time about such issues as total quality management, sales force automation, risk management, outsourcing, human resource management, and so on. Most of the knowledge assets are explicit systemic knowledge assets, which were externalized from tacit experiential knowledge assets, and are currently in use at Fuji-Xerox. 7

9 1. Four Types of Knowledge Assets The program works as follows. A salesperson hands a sheet of paper titled Collaboration Program to a possible corporate customer's purchasing department. It lists up the above issues about which Fuji Xerox has accumulated and externalized knowledge. He invites the possible customer's top manager to a presentation room (there are now five in Tokyo, one in Osaka, and one in Nagoya), where invited top managers listen to presentations by an experts on issues they are interested in. The experts/presenters have been especially trained for this program. The presentations include Fuji Xerox's knowledge assets as well as general knowledge about the selected issues. According to an in-house survey to Fuji-Xerox's sales people, 95 percent of them either strongly agreed or agreed to the statement: the program has helped strengthen the trust between you and your customers, and 88 percent of them either strongly agreed or agreed to the statement: the program has helped your business negotiations. 8

10 1. Four Types of Knowledge Assets Hitachi Brand as knowledge assets Rather than giving away its knowledge assets for free, Hitachi sells its systemic knowledge assets. When Etsuhiro Syoyama rose to president of Hitachi in 1998, he declared his vision that we aim for the Knowledge Enterprise' and demonstrates its ability to synthesize its technology and intelligence. Has two knowledge assets programs. One is to sell its systemic knowledge that were only internally utilized until then, for example, packaged software of computer-assisted engineering (CAE), through a portal site named i-engineering on the Internet. The other is a brand management program, which was instituted directly under the president in April The company has decided the brand platform that shows the direction Hitachi brand aims at and a corporate statement Inspires the Next that symbolizes the platform. The statement means that the company will inspire the next generation, society, product, system, or solution, thereby realizing a rich life and a good society. The goal of this program is to raise the image and value of Hitachi brand up to par with those of Sony. 9

11 1. Four Types of Knowledge Assets SONY The company aims for the Knowledge-Based Manufacturer that capitalizes on its manufacturing capability, brand power, and knowledge about consumers. The original Japanese term chishiki seizogyo for Knowledge-Based Enterprise was coined by Nonaka and Konno (1999). Sony has its own knowledge assets programs. Known as a maverick for a Japanese company, Sony has a unique organizational culture. It instituted an education program called Sony Juku for young promising employees in their thirties. Every year, top management instill Sony spirit as experiential knowledge into 16 future leaders, who in turn are required to propose strategic plans as conceptual knowledge to top management. This year, four strategic plans for Sony of the Internet Age were proposed to then president Idei, who accepted them all and ordered their immediate implementation. Sony has a tradition that respects ideas from younger employees and nurtures mavericks. Ken Kutaragi, president of Sony Computer Entertainment that now dominates the video game industry with PlayStation, was such a maverick. 10

12 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 11

13 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 12

14 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 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 13

15 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 14

16 Adam and Oleksak Concept of Intellectual Capital Market Value Financial Capital Intellectual Capital Human Capital Structural Capital Relationship Capital Business Model Management Intellectual Pro perty Network Employees Processes Brand Customers 15

17 Current Concept of Intellectual Capital Market Value Financial Capital Intellectual Capital Human Capital Structural Capital Relationship Capital Spiritual Capital Business Model Management Intellectual Property Network Employees Processes Brand Customers 16

18 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. 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. 17

19 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. 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. 18

20 Spiritual Capital This stands for virtues, divine principles, extraterrestrial guidance and faith which operate within an organization. There is no other kind of capital that really works without an underlying base of spiritual capital. - Zohar D. and Marshall I. 19

21 Intellectual Capital Management Evaluation Guide IC Value Creation Intellectual Assets/ Knowledge Intellectual Property Management Management Managing IC Creation IC Value Management Strategic IC Management IC Value Extraction Source: Canadian Institute of Chartered Accountants 20

22 Determinants of Value Creation Value Creation Capacity Value Creation Formula Value Creation for Key Stakeholders Value Creation Reality Value Realization Formula Value Creation Analysis Value Stream Modeling 21

23 Why should a firm establish Intellectual Asset Strategy? 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 22

24 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. 23

25 Our discussion will go on to the Organizational IQ which is regarded as a means of knowledge-based management practice. 24