Page 23 - Intellectual Capitail Management

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The results from the individual assessments can then be aggregated and displayed in a

resource map. Such a map visually represents the relative strength or importance of the different

resources (intangible and tangible). It is also possible to include the two data sets (strengths and

importance), and to use different size bubbles to indicate any gaps.

Figure 6 illustrates such a resource map, one created for a leading online retailing business14 to

understand the relative importance of its resources to deliver the existing value proposition.

The value proposition of this well-known retailer was to become the world’s preferred source

for a particular type of goods by providing consumers not only with top level service, but also

high quality value-added information, excellent price, simple transactions, and an enjoyable

shopping experience. In this example, managers assessed structural capital and human capital as

the most important intellectual capital value drivers (indicated by the biggest bubbles).This

commercial enterprise places particular emphasis on its knowledge of the market and its

customers, plus its processes and brand. Other important resources were its relationships,

especially with its suppliers and lenders, as the business is still in the growing phase and

unprofitable. This map helped the organization to understand the relative importance of its

intellectual capital in order to allocate its resources appropriately.

As discussed in Figure, intellectual capital interacts with other resources to create a core

competency, which in turn helps to deliver the value proposition. This means that resource

interdependencies can only be assessed in relation to the organization’s existing core

competencies and value proposition. If you have defined your strategic deliverables and core

activities, you can then use the above resource list to understand how the resources combine to

deliver your core competencies and value proposition.15

By : Enas Mekki Managing Intellectual & Human Capital