Intellectual capital management depends on the type of capital, including human, structural, and relational. Human capital management focuses on developing the workforce, while structural capital includes intellectual property and physical properties. Relational capital involves customer relationships and brand management. Effective management involves recognizing, storing, and organizing assets for optimal effect.
The method to be used for managing intellectual capital depends on the type of capital. Three of the most common types are human, structural, and relational capital. Each of these require different types of manipulation to develop and thrive. Overall, the process of intellectual capital management is the management of both tangible and intangible intellectual assets.
Human capital management is primarily about nurturing and developing the workforce. Employees own the only kind of intellectual capital that can move away from the company. To continue to benefit from its human resources, an organization will typically focus on retention efforts. An organization can also devise ways to help the workforce thrive, from encouraging innovation to facilitating skills development.
Another aspect of managing intellectual capital is maintaining structural capital. This is the framework that allows human capital to function properly. The management of this area includes intellectual property such as trademarks, patents and databases. It can also include physical properties such as buildings and hardware. An organization will typically manage this resource with careful tracking, inventory management, and strategy.
Relational capital is the customer-focused part of intellectual capital management. It includes customer relationships with both the company and individual employees. The particular way a company engages with its customers can increase loyalty and referrals, as well as strengthen its image with the general public. Brands can also be included in this category and alongside franchises and licenses. A common way to manage this resource is to maintain close contact with customers through means such as surveys, promotions, and special programs that are unique to the business.
Intellectual capital management is sometimes associated with the knowledge management process. This more general process manages all of an organization’s knowledge assets, from the intangible to the quantifiable. By combining these elements, an organization can facilitate the process of monitoring, managing and using its resources. It can also explain the ways in which intellectual capital and knowledge are intertwined.
An organization’s intellectual capital is essentially its collected knowledge transformed into a valuable asset. Intellectual capital can be in active use or exist as some kind of debt in an organization’s assets. By effectively managing this resource, an organization can be confident that it is reaping the benefits of all available intellectual assets. This typically includes recognizing, storing, and organizing those assets for optimal effect.
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