Intellectual Capital And An Intangible Asset

What exactly is knowledge management? “Knowledge management is defined as developing a system to improve the creation and sharing of knowledge critical for decision making” (Kreitner, 217). Tacit knowledge involves the creative minds of the production because “it is personal, intuitive, and undocumented

Knowledge management was defined as the turning of information into actionable knowledge which can be accessed by people who can apply it. Robbins (2003) gives a time perspective in his definition of knowledge management. He mentions as part of knowledge management the distribution of the right information to the right people at the right time. Lytras et al (2002) gives a definition of knowledge management which emphasises the purpose of knowledge management. In the definition creation of new capabilities, enablement for superior performance, encouraging innovation and enhancement of customer value were mentioned. For the purpose of this study the researcher summarised knowledge management as the intentional process of coordinating people, technology and systems to optimise creation and sharing of intellectual

While Knowledge Management (KM) is important in any business however, there is no real agreed upon definition. KM is a concept that includes the

Intangible assets are operational assets that lack physical substance. However, the future economic benefits that are derived from intangible assets are usually less certain than tangible operational assets. Due to this uncertainty, the valuation of these assets rely upon multiple estimations, therefore the reliability of the information may not be as accurate. Additionally, the relevance of the data in the decision making process comes into question since the future benefits are unknown. Copyrights, franchises, goodwill, patents, and trademarks are just a few examples of intangible assets.

How data, information and knowledge are related to the concept of knowledge management (KM)? How are they different (please define each one: data, information, knowledge and KM)? What are the potential benefits of knowledge management projects? What strategies should companies follow to achieve positive results in KM projects?

Intangible assets are considered assets without a physical form, a company’s reputation, a business industry knowledge and name recognition (Francis, n.d.). Intangible assets provides intrinsic value that adds to a business reputation and credibility. Companies like Apple and Samsung has a reputation of being the most innovative companies in their field of mobile technology and electronics. Having the ability to be considered one of the best adds to a company’s longevity. Some companies reputations are tainted or takes a hit, this may cause them to have to liquidate tangible assets just to survive. Intangible assets will not show up on balance sheets or income statements but they are valuable to keeping a company in good standing and may be the key to survival in a competitive market. Intellectual property can be considered a varication of an intangible assets, intellectual property refers to patents, brands (Pepsi, Ford), logos, inventions, trademarks and other creative communications (Francis, n.d.). We live in a world where brand names is wanted and sometimes may feel like they are needed. For example, Jordan name branded

Knowledge Management has been a core requirement of many organizational practices and mostly in gaining competitive advantage over other firms. Knowledge itself is precious but if not used properly, then

In order to understand knowledge management, it is important to start by defining what knowledge is. Knowledge is the full utilization of information and data, coupled with the potential of people's skills, competencies, ideas, intuitions, commitments and motivations. In today’s dynamic and complex business environment, the desire for knowledge has increased even more with the scope and content changed dramatically, often spreading outside the organization.

The term knowledge management has become common in businesses throughout the world. Despite its increased prevalence, there remains a large degree of confusion concerning the applied definition of what knowledge management is. Within the knowledge management community, attempts at defining this elusive term appear to be in constant flux. However, a basic description of what constitutes

Knowledge management helps to solve some of the most common business problems and at the same time delivers

To define what is Knowledge Management(KM), one should know what is knowledge first. Knowledge is different data and information. A data gives a specific fact; information is a collection of data that has been organized. Knowledge connects the information that has been given and create the context. For instance, “the third day of a week called Tuesday”, this is a data; “Tuesday is one of the weekdays” and “most people work on weekdays” are the information; Knowledge based on the the information, would suggests that “most people work on Tuesday.”

Many large companies have resources dedicated to Knowledge Management, often as a part of 'Information Technology ' or 'Human Resource Management ' departments. Knowledge Management is a multi-billion dollar world wide market.

Intangible resources are largely invisible, but over time become more important to the firm than tangible assets because they can be a main source for a competitive advantage.

In today’s modern day environment, the competition as well as the drive to be one of the best amongst organizations, is consistently increasing, especially after globalization. Due to which many organizations are no longer confined under certain boundaries, but instead are more intermingled. As an outcome, many organizations these days heavily rely on each other for sharing knowledge. Therefore, knowledge management is considered as a valuable component towards the success of an organization.

In this Era of Technology, many organizations mostly make use of two knowledge management strategies, they are explained below: