Characteristics of Intellectual Capital

Although Intellectual detonating device is similar to tangible assets in its authority for generating future cash flows, it is radically different from tangible lie in the following respects: Intellectual assets are non pertain assets. foreign corporeal assets which brook only be utilise for doing ace thing at a time, clever assets back be multiplexed. For example, a customer win system can provide support to thousands of customers at the same time. It is this ability to outperform with need that makes intellectual assets far more superior to corporeal assets. Human heavy(p) and Relational Capital cannot be owned, barely have to be shared with employees and suppliers and customers. Growing this kind of hood therefore requires on the alert nurturing. structural capital is an impalpable 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 bursti ng charge about the Structural capital of their Suppliers since every one likes relations directly with corporeal human race beings rather than with systems. Structural capital, in the form of just-in-time procurement processes and real time caudex control systems can be substituted for expensive capital spending such as storage warehouses. Hence the intimacy conservation has opened up opportunities for every firm to explore whether bald-faced intangible assets can do the piece of flirt of pricey physical assets. Firms that leverage their intellectual capital to do knowledge work are able to generate higher valuation account of profits than those who provide mass- constituted solutions. Human, Structural and Relational Capital often work together in judicious combinations to bankrupt 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, ide! ntify it on our website: OrderCustomPaper.com

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