IC : THE ULTIMATE RENEWABLE RESOURCE
Karl Erik Sveiby, a founding father of knowledge management, defines it as ‘the art of creating value by leveraging intangible assets. To be able to do that, you have to be able to visualize your organization as consisting of nothing but knowledge and knowledge flows’.
His countryman, Leif Edvinsson is a master at such visualizations but his international renown is built more on his contribution to the theory and measurement of intellectual capital (IC). Edvinsson, who received the prestigious international ‘Brain of the Year’ award in January, is VP and corporate director of intellectual capital at Skandia of Stockholm, Sweden and has overseen creation of the world’s first IC annual report. This year’s IC Prototype Report, Skandia 1998 is entitled Human Capital in Transformation.
Edvinsson defines IC as ‘the sum of structural capital and human capital, indicating future earnings capability from a human perspective. The capabilities to continuously create and deliver superior value’. But he does not believe that IC is the exclusive domain of the private sector and takes pride that Sweden has issued a national IC report (as has Israel).
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