Bài giảng Strategic Management - Chapter 4: Recognizing A Firm’s Intellectual Assets: Moving Beyond a Firm’s Tangible Resources

Recognizing A Firm’s Intellectual Assets: Moving Beyond a Firm’s Tangible Resourceschapter 4The Central Role of KnowledgeIn the knowledge economy, wealth is increasingly created by effective management of knowledge workers instead of by the efficient control of physical & financial assets.4-*Ratio of Market Value to Book Value4-*Exhibit 4.1 Ratio of Market Value to Book Value for Selected CompaniesSource: www.finance.yahoo.comNote: The data on market valuations are as of January 4, 2013. All other financial data are based on the most recently available balance sheets and income statements.The Central Role of KnowledgeIntellectual capital is a measure of the value of a firm’s intangible assets – the difference between a firm’s market value & book value. It includes these assets:ReputationEmployee loyalty & commitmentCustomer relationshipsCompany valuesBrand namesExperience & skills of employees4-*The Central Role of KnowledgeHuman capital includes the individual capabilities, knowledge, skills, and experience of the company’s employees and managers.Social capital includes the network of relationships that individuals have throughout the organization.4-*Human Capital4-*Exhibit 4.2 Human Capital: Three Interdependent ActivitiesAttracting Human CapitalSound recruiting approaches to attract human capital:Building a pool of qualified candidatesThe challenge becomes having the right job candidates, not the greatest number of themNetworkingCurrent employees may be the best source of new onesProvide incentives for referrals4-*Developing Human CapitalTraining and development must take place at all levels of the organizationRequires the active involvement of leaders at all levelsIncludes mentoring & sponsoring lower-level employeesMonitoring progress & tracking developmentEvaluating human capital4-*Retaining Human CapitalRetention mechanisms must prevent the transfer of valuable and sensitive information outside the organization:Help employees identify with an organization’s mission and valuesProvide challenging work and a stimulating environmentOffer financial and nonfinancial rewards & incentivesMoney is not the most important reason why people take or leave jobs4-*Social CapitalSocial capital – the friendships and working relationships among talented individuals – helps tie knowledge workers to a given firm.Interaction, sharing, and collaboration will help develop firm-specific ties, with a higher probability of retaining key knowledge workers.4-*Social NetworksSocial network analysis depicts the pattern of interactions among individuals and helps to diagnose effective and ineffective patternsWho links to whom within the network or cluster?Who communicates to whom and how effective is this communication?4-*Social Network Analysis4-*Exhibit 4.4 A Simplified Social NetworkUsing Technology to Leverage Human Capital and KnowledgeUsing networks to share information and develop products and servicesThrough e-mailThrough an intra-company news feedThrough electronic teams or e-teamsAdvantages: few geographic constraints; access to multiple social contactsChallenges: failure to identify team members with the most appropriate knowledge and resources; low cohesion, low trust, lack of shared understanding creates “process loss”4-*Protecting Intellectual AssetsIntellectual property rights are more difficult to define and protect than property rights for physical assets.Unlike physical assets, intellectual property can be stolen.If intellectual property rights are not reliably protected by the state, there will be no incentive to develop new products and services.4-*Protecting Intellectual AssetsDynamic capabilities involve the capacity to build and protect a competitive advantage.This requires knowledge, assets, competencies, and complementary assets & technologiesThis also requires the ability to sense & seize new opportunities, generate new knowledge, and reconfigure existing assets & capabilities.Dynamic capabilities include internal processes & routines that enable product development, strategic decision-making, alliances, or acquisitions.4-*