Intellectual Capital has been seen to be a valuable resource and one of the key contributors to both economic success and value creation in both small and large scale businesses. However, before we dive into all those technicalities it is important to understand what intellectual capital actually represents.
So what is financial capital? That’s all the money your company possibly owns including the valuation of everything it has as well.
Intellectual capital is the branch of the same trunk. The only difference is that instead of money it’s the entirety of the company’s knowledge. Consider it as if you were to suck out the knowledge of every person in your company, and yes I do mean each and every relation there is, what you’ll get will be your intellectual capital!
But, we aren’t building up an encyclopedia now are we? So, what could we possibly get from all this information and what does it possibly have to do with business and growth?
Well, if we think about it real close we would release that there isn’t a single business or company in the world that could even take a step without the knowledge it gets from its employees. Informed decisions do need information – that’s pretty straight out common sense now. So, indirectly but directly they are what constitute the company’s success in the first place because without them you’d just be a person sitting on a chair in a huge building.
In the current market, competition is high because the buyers have become more informed. Modern business being so dynamic has also undergone many changes. Our survival therefore depends solely upon our adaptability to these changes i.e. intellectual capital awareness and education as it leads to:
- Competitive Advantage
- Research and Development
- Business Performance
- Value Creation
- Organizational Strategy
- Competence and Capability
A very impactful method to start unearthing intellectual capital is to proceed on a broad-based audience consisting of clients and prospects that are compared to referral sources. On the basis of that it will be easier to proceed to intimate the thought leadership initiative. This may seem a rather tedious and far-off procedure but really is just a one out of the two-way road that will make it easier even from your own home study table.
1- Solution Focused: The intellectual capital is all about getting specific results from clients and referral sources. To narrow it down, it’s more of the how-to variety. Now, considering the ‘how to’ strategy the simplest way to go is the path of the four W’s – what to, when to, why to and where to.
2- Perspective Focused: Considering perspectives, things like industry insights, trends and forecasts must be taken into account. To make this method viable the core is the analysis that augments the descriptions as here the material of interest is the current or projected states.
After making the choice, you’ll be open to a tremendous archive of places that your professionals can look into for information that will eventually turn out as intellectual capital. But how? Well there many ways that you can convert these raw findings into valuable capital – intellectual capital. The most popular are the following two:
1- Concept-generation techniques
You don’t have to go scouting for something new out of the box because we all know that there are only so many ways that we can present the same thing. No matter how vast the world is, it’s finite and so are the concepts. What will make you different is the clever recombination of commonly understood, recognized and already validated concepts making them all nice and shiny appeals to the target audiences.
Both groups and individuals can use these techniques for example Brainstorming.
2- Market Research
Quantitative and qualitative research is usually wont to identify, develop and refine intellectual capital. marketing research serves variety of functions when it involves intellectual capital, including:
- Validation. When certain premises and conclusions raise questions and have doubters, marketing research can corroborate those conclusions.
- Quantification. Many find it comforting when objectivity, within the sort of numbers, is attached to perspectives.
- Distillation. This is often where a particular amount of digging into a knowledge set leads to synthesizing the knowledge creating cohesion.
- Interpretation. Here new intellectual capital is found within the info set.
Replace the less-qualified performers with people who are more qualified. Invest in the current workforce to make it stronger by extensive training and activities for new technical and management skills.Contract out what cannot be done efficiently or effectively in-house, or use a consultant who has the competence.
Today’s businesses need committed employees involved seriously, emotionally and intellectually because that is the key to real business success i.e. building your company’s intellectual capital. Unless you have a way of capturing and curating the knowledge locked within your personnel; that’s going to be a difficult task!