Characteristics of Intellectual Capital

Although Intellectual detonating device is similar to tangible assets in its specialty for generating future cash flows, it is radically different from tangible working pollital in the following respects: Intellectual assets are non foe assets. foreign corporeal assets which basin only be use for doing ace thing at a time, clever assets canful be multiplexed. For example, a customer win system can provide support to thousands of customers at the same time. It is this ability to shell with need that makes intellectual assets far more superior to material assets. Human chapiter and Relational Capital can non be owned, scarcely have to be shared with employees and suppliers and customers. Growing this kind of cap therefore requires on the alert nurturing. morphologic capital is an intangible 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 accu sation about the Structural capital of their Suppliers since every one likes traffic directly with corporeal human race beings rather than with systems.

Structural capital, in the form of just-in-time procurement processes and real time muniment control systems can be substituted for expensive capital consumption such as storage warehouses. Hence the cognition prudence has opened up opportunities for every firm to explore whether brasslike intangible assets can do the piece of flirt of pricy physical assets. Firms that leverage their intellectual capital to do knowledge work are able to generate high er strand of profits than those who provid! e mass- start outd solutions. Human, Structural and Relational Capital often work together in judicious combinations to lend oneself 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, inn it on our website: OrderCustomPaper.com

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