Summary: Intellectual Capital E-Book

BusinessNews Publishing

• Herausgeber: Business Book Summaries
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 23

Veröffentlichungsjahr: 2013

Beschreibung

The must-read summary of Leif Edvinsson and Michael S. Malone's book: "Intellectual Capital: Realizing Your Company's True Value by Finding its Hidden Brainpower".

This complete summary of the ideas from Leif Edvinsson and Michael S. Malone's book "Intellectual Capital" shows how intellectual capital represents the difference between a company's balance sheet and its market value. In their book, the authors describe how traditional accounting methods fail to accurately capture intellectual property assets, resulting in a significant management question: “How can management decisions be consistently made which will enhance the company’s intellectual capital base rather than detract from it?” Businesses need to develop a framework to measure intellectual capital, to track and improve it. This summary will teach you exactly how to do this in order to represent the true value of your company.

Added-value of this summary:
• Save time
• Understand key concepts
• Expand your business knowledge

To learn more, read "Intellectual Capital" and discover how you can find the hidden brainpower of your business in order to realize its true value potential.

Leseprobe

Book Presentation: Intellectual Capital by Leif Edvinsson and Michael S. Malone

Book Abstract

Important Note About This Ebook

Summary of Intellectual Capital (Leif Edvinsson and Michael S. Malone)

Part 1: The Concept of Intellectual Capital

Part 2: A Corporate Model for Market Value Which Incorporates Intellectual Capital

Part 3: Calculating and Managing a Company’s Capital Base

Part 4: The Future Role of Intellectual Capital

Book Presentation: Intellectual Capital by Leif Edvinsson and Michael S. Malone

Book Abstract

MAIN IDEA

Intellectual capital represents the difference between a company’s balance sheet and its market value. It is frequently referred to as indirect assets, intangibles or goodwill, and consists of organizational knowledge, customer loyalty and satisfaction, a company’s ability to innovate and bring new products to market, employee morale and skills, patents, trademarks and a number of other factors.

The fact that traditional accounting methods fail to accurately capture intellectual property assets also results in a significant management question: If intellectual capital can have such a large impact on a company’s valuation, how can management decisions be consistently made which will enhance the company’s intellectual capital base rather than detract from it.

The absence of established accounting systems for intellectual capital means that companies need to take the initiative and develop their own systems to conceptualize the company’s intellectual capital. Once this framework has been developed, management decisions can then be evaluated on the basis of whether or not additional intellectual capital was created.

“As an index, book value is dead as a doornail, an artifact of the Industrial Age. We live in the Information Age, of course, though remarkably few people have come to terms with that fact. Failure to understand the declining relevance of book value - and the hard assets that form the ratio’s numerator - is proof of this.

Human intelligence and intellectual resources are now any company’s most valuable assets.”

- Rich Karlgaard, editor, Forbes ASAP

Important Note About This Ebook

This is a summary and not a critique or a review of the book. It does not offer judgment or opinion on the content of the book. This summary may not be organized chapter-wise but is an overview of the main ideas, viewpoints and arguments from the book as a whole. This means that the organization of this summary is not a representation of the book.

Summary of Intellectual Capital (Leif Edvinsson and Michael S. Malone)

Part 1: The Concept of Intellectual Capital

Main Idea

The real value of modern corporations cannot be determined by traditional accounting methods because these measures fail to accurately allow for a company’s intangible assets - its intellectual capital (IC) component.