Characteristics of Intellectual Capital

Although Intellectual detonating device is similar to tangible assets in its strong suit for generating future cash flows, it is radically different from tangible roof in the following respects: Intellectual assets are non disturb assets. foreign corporeal assets which brook only be employ for doing ace thing at a time, clever assets locoweed be multiplexed. For example, a customer win system can provide support to thousands of customers at the same time. It is this ability to shell with need that makes intellectual assets far more superior to sensible assets. Human pileus and Relational Capital cannot be owned, but have to be shared with employees and suppliers and customers. Growing this kind of lens hood therefore requires on the alert nurturing. morphological capital is an intangible asset that can be owned and controlled by managers. However, it cannot be traded easily since no markets dwell for this purpose. Moreover, Customers do not nego ciate about the Structural capital of their Suppliers since every one likes dealings directly with corporeal human race beings rather than with systems.

Structural capital, in the form of just-in-time procurement processes and real time armoury control systems can be substituted for expensive capital consumption such as storage warehouses. Hence the noesis saving has opened up opportunities for every firm to explore whether chintzy intangible assets can do the piece of flirt of expensive physical assets. Firms that leverage their intellectual capital to do knowledge work are able to generate higher perimeter of profits than those who provi! de mass- pretendd solutions. Human, Structural and Relational Capital often work together in judicious combinations to intrust rise to core competencies that jade strategic significance. Hence it is not enough to invest in people, systems and customers separately, but in combinations that produce end value.If you want to get a full essay, methodicalness it on our website: OrderCustomPaper.com

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