I A M & VC
Image: O. Fjellström
Future Value Creation Quizzics?
• One dimensional or multi dimensional?
• Competitive or collaborative?
• Inside or Outside?
• Exploitation or Exploration?
• Culture and design?
• Mind set & mental energy ?
• Repetition or renewal?
-----
THINKING AHEAD
See: www.bottomline.se
Source: Nature July 2004
IC for Natural
Communities:

Nations : the IC-dVAL : A set of Metrics
Final Indexes
2001
Is The European Nordic M odel a
benchm ark ?
National IC Perf Index
80
70
60
50
40
30
20
10
0
EU Av
S
FIN
UK
DK
NL
2004
IRL
D
F
A
B
E
I
GR
P
US
JP
National IC Perf Index
90
80
70
60
50
40
30
20
10
0
EU Av
S
FIN
UK
DK
NL
IRL
D
F
A
B
E
I
GR
P
US
JP
Source ; professor A. Bounfour
Recent and future events:
- The First Worldwide conference on « Intellectual
Capital for Communities », Paris World Bank
Office, 20 June 2005
-Several conferences and events under
preparation (Paris, Rio de Janeiro, ….)
-The OECD&IC event, Ferrara, October 2005
-The New Club of Paris Manifesto
-The IAMaC, Waseda University, Nov 2005
- The Japan IC week, Nov 2005
COGNITIVE
LANDSCAPE
Longitude perspective on ‘assets’
Value chain perspective
(or capital in use)
Sustainable Advantage perspective
(or capital in waiting)
Immeasurable ?
Measurable in $’s
Clear ownership
Capital growth and
enhanced financial
performance
1.
Tangible
goods
Accountants
Bankers
Analysts
www.euintangibles.net
Multi Ownership
The Value
Adding space
2.
Intangible
goods
Leader-ship
3.
Intangible
competences
Capital impairment
and reduced financial
performance
4.
Latent
capabilities
Enterprise Executives
Venture Capitalists
Society Entrepreneurs
www.criticaleye.net/insight
Taxonomy of methods relevant for IC Reporting (following K. Alwert, 2005)
Governing
Paradigm
(in Economics)
Intellectual
Property Brand
Patent
ValuValuation
ation
Kloyer /
Wirtz et al.
Method
giving
a value
argument
Method
without
resuming
in a
value
Citation
Weighted
Patent
(Hall)
Balanced
Scorecard
EVA
(Stewart)
Intangible
Scoreboard
Market
to
Book
Value
Identification / Calculation of monetary value
© Günter Koch, Wien
(Edvinsson/
Kivikas)
Consideration
of different
aspects
IC Audit
(Brooking)
IC BenchHolistic
Value Appr. marking
IC
Rating
Calculated
Intangible
Value
•Skandia Navigator
•Konrad Group Method
•Intang. Asset Monitor
• Danish Guidelines
•ARC (Koch, Leitner)
•BMWA „Wiss.bilanz“
Future
Paradigm
(Value based
on knowledge)
IC
Index
(Roos)
IC dVAI ®
(Bounfour)
Consolidated
Resumee
Drawing a picture of the „state of knowledge“
4
IC GENETICS ?
Value integration
Organisational
Structural
Capital
Human
Capital
Stake
holder
Capital
Relational
Structural
Capital
Value
Recipe
Human
Capital
Organisational
Structural
Capital
Danish Guidelines
Financ
ial
Capital
Customers
Employees
Processes
Technology
Relational
Structural
Capital
Knowledge narrative Mgmt. Challenges
Initiatives
Indicators
Value
delivered
to
customers
New and
improved
necessary
knowledge
Initiatives
that should
be launched
in order to
succeed with
the
challenges
Indicators to
follow the
direction of
the launched
initiatives
and how well
the
challenges
are obtained
Develop
mobile
phones
based on
cutting
edge tech.
Building up
partnership
with
customers
Involve
customers
in product
developme
nt process
Proportion of
customers
who would
recommend
the company
to others:
78%
www.vtu.dk/icaccounts
www.vtu.dk/icaccounts
IC Rating™
Business
Recipe
Intellectual
Capital
Organisational
Structural Cap.
Intellectual
Properties
C
Human
Capital
Organisational
Structural
Capital
Process
CC
Relational
Structural Cap.
Human Capital
Management
BB
Employees
Network
Brand
Customers
A
BB
BBB
B
Understanding of customers
business
77
l
Capital
Price sensitivity
Vulnerability defection
30
54
Relational
Structural
Capital
76
Proactivity
80
Relationship
© 2004
Result for local municipality
Scale
Efficiency
Risc
Renewal
Intellectual capital
AAA
AA
A
BBB
BB
B
CCC
CC
C
D
Core city concept
B
B
BB
RR
R
BB
BBB BBB R
RR
RRR
Organisational
Structural capital
BBB BBB
R
A
BBBBBB R
Process
www.intellectualcapital.se
www.actcell.com
A
A
R
BB
R
R
Leaders
R
RR
RRR
Non exist
Moderate
High
Very high
BB
CCC CCC RR
BB
A
Extr. high
Very high
High
Fairly high
Medium
Relatively low
Low
Rather low
Extr. low
Defficient
Relationsbased
Structural capital
Human capital
BB
IR
AAA
AA
A
BBB
BB
B
CCC
CC
C
D
BBB A
Staffing
BB
B
B
RR
Net verk
CCC CCC RR
Community
CCCCCC RR
Brand image
© 2003
Sustainability value
Customer/
relation value
Value areas :
Human value
• Strategic IC
• Balance Sheet
• Goodwill or….
CBS
Structural value
The long term
capital
Environmental
value
Value to society
Equity
Assets
Debt
www.bottomline.se
© 2003
Systems dynamics model
Managerial
Leadership
Retention of
Key People
Human
Capital
Training
Relational
Capital
Human Capital
Effectiveness
Structural
Capital
Employee
Satisfaction
Employee
Commitment
Employee
Motivation
Value
Alignment
Knowledge
Generation
Process
Execution
Business
Performance
Knowledge
Integration
Knowledge
Sharing
Human Capital
Depletion
Further sources; Nick Bontis & Jay Forrester
www.akwissensbilanz.org
© 2003
www.akwissensbilanz.org
www.wissenskapital.info
Development of average citation
factor over time
7
6
5
4
3
2
1
Jonas Lundberg, Karolinska Institutet, 2005
0
1997
Stanford
1998
Harvard
1999
CMM
Imperial
2000
KI
Umeå
2001
Lund
2002
Uppsala
Göteborg
2003
Linköping
CMM ICR model
Source: CMM Intellectual Capital Report 2003 – Stockholm, 2004
www.cmm.ki.se
IAM
• The knowledge Economy as an Organisational
system Concept both as a concept and practice
Predominance of three factors: (Foray, 2000):
research and education, relationships for
evolution, and learning capabilities
Source ; professor A. Bounfour
Speed or Rythm?
Human Potential
Talent
Skandia Future Center
www.bottomline.se
The 4:th dimension
Logos
-M
os
h
yt
Time
The New C E O
Source: Chic Thompson, ‘What a great Idea!’, Harper Collins (2001) and Paul Iske, Know Com 2005
KnocoM
Creativity Index
© 2003
Reduce fear & ignorance
Reduce friction cost
Recude brain stress & speed
Increase joy &
RC:
Intelligence
Interactive design
Intuition –chi mgm
”A happy workforce
makes for a healthy
bottom line”
Financial Times
Longitude Value
Outcome Value
Output Value
Impact value
Value
Value
Creation
Creation
Intangible
Intangible compensation
compensation
-Social
-Social recognition
recognition
-Challenging
-Challenging tasks
tasks
-Continuous
learning
-Continuous learning
-Self
-Self rewards
rewards
-Feedback
-Feedback
-Psychosocials
-Psychosocials
Usage
Usage &
& rent
rent of
of
Organizational
Organizational
Structural
Structural Capital
Capital
Tangible
Tangible compensation
compensation
%
% of
of Value
Value added
added
-Individual
-Individual value
value added
added
-Relational
-Relational value
value added
added
-Potential
-Potential
-Context
-Context
Leverage/Multiplier effect
Personal
Personal
Human
Human
Capital
Capital
Aspects of
intelligent remunerations
Copyright; L.Edvinsson & J. Camp,
2005
CMM
” The Happy Restaurant ”
CMM
”Place for social interaction ”
Knowledge Café
The critical psychosocial landscape
c M.O.R.E. Inredningskonsulten AB
-------- space design
…..access to green areas for mind gym
ECOLOGICAL
JOY ZONE
22 @
Bjuv
Östra Göinge
Örkelljunga
Bromölla
Burlöv
Ängelholm
Båstad
Åstorp
Eslöv
Ystad
Helsingborg
Vellinge
Hässleholm
Trelleborg
Höganäs
Tomelilla
Hörby
Svedala
Höör
Svalöv
Klippan
Staffanstorp
Kristianstad
Skåne
Kävlinge
Skurup
Landskrona
Sjöbo
Lomma
Simrishamn
Perstorp
Malmö
Osby
Lund
Human Capital
Organisation Capital
Relation Capital
Gross Regional Product
Soruce: R. Florida and I. Tinagli
WEF, Global Competitiveness
Report, 2005 ( underlined?)
1. Finland
2. US
3. Sweden
4. Denmark
5. Taiwan
6. Singapore
7. Iceland
8. Switzerland
9. Norway
10. Australia
11. Netherlands
12. Japan
13. UK
14. Canada
15. Germany
16. New Zealand
17. Korea, Rep
18. UAE
19. Qatar
20. Estonia
•jaubert@worldbank.org
URBAN DENSITY & INNOVATIONS
SOCIAL INNOVATION SPACES
Intellectual Capital
Human Capital
Staff and Citizens
Social Capital
Organizational Capital
Innovational Capital
Process Capital
Source; Edvinsson & Radovanovic
The strategic
”time glas”
DOMINANT MODELS
1.
2.
3.
4.
5.
INDUSTRIAL ERA (1850-1980)
NEO KAPITALISM (1980-1995)
INFORMATION-ERA (1990-2000)
KNOWLEDGE-ERA (1995-2020)
MIND-ERA (2010-2030/50)
DOMINANT SOCIETY VALUES
Materialistic
Money, job, wealth
Position and info networks
Education and Knowledge
Social intelligence, Well-fare
Source: C. Varga
Growth flow
Localicing
YOUR I - SPACE
Csaba Varga
GLOBALICING
Intelligent regions
Intelligent life in a creative way, based
on social intelligence and digital with
collective self governance.
Connecting bridge between local society
and global opportunities.
The Intelligent City K-Recipe
• attractor for the creative class
• geopolitical position
• mobile city with networks to various clusters and meetings places
•
•
•
•
•
•
•
•
with know who’s
communicative city with good logistical flow
cooperative city with high value making through various exchanges
healthy, fresh and humane to offer good quality of life
curious citizens with active interfaces towards the unexplored for
social innovations
generous city with cultural capital and coherence emphasizing
values
action intensive city with multitude of active interfaces
wealth creating
safe and peaceful
Source: Leif Edvinsson
Transformation space formula?
Source: Dr.Ron Dvir
Society IC Leadership
www.bottomline.se
All rights reserved
Leif Edvinsson
Professor of Intellectual Capital
leif.edvinsson@unic.net
Phone: +46 70-592 50 78