Essay about Measuring and Managing Knowledge Based Assets

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Measuring and Managing Knowledge Based Assets: Summary of a Model ‘Knowledge Management’, ‘Intellectual Capital’, ‘Knowledge Workers’, ‘The Information Organization’, ‘The Information Economy’, ‘Intangible Assets’, ‘Information Based Assets’, ‘Knowledge Based Assets’. These are the buzzwords of our “new” economy. What do they mean? How do we make sense of them? How do these terms fit with our understanding of ‘managing the information organization’? In 1997, Karl Sveiby authored a book titled The New Organizational Wealth: Managing and Measuring Knowledge Based Assets. In summarizing this book, my goal is to contribute to our discussion of ‘managing the information organization’, and, in particular, to further our…show more content…
Intangible Assets Intangible assets are those assets that are not visible but can be measured and add to the profitability of the organization.In most companies and organizations, the intangible assets are greater than the tangibles.There are three types of intangible assets, all derived from people.(All assets and organizational structures are the result of human actions). The three types are: Employee Competence In a knowledge organization there is little “machinery” or tangible assets other than the employees. Employee competence is the muscle behind the people and the computers.The knowledge that employees bring to the table in ability and competence, if not expertise, must be considered intangible assets. Internal Structure Internal Structure includes patents, concepts, models, and computer and administrative systems.Knowledge here is imbedded in administrative and organizational structures.Internal structure, like a finely tuned administrative/support team, is considered an asset in that it enables the transfer of knowledge by adding value to a situation, in a way not dissimilar to how a computer, a tangible asset, adds value by allowing for faster computing of numbers. External Structure The external structure includes relationships with customers and
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