Making Sense of Intellectual Capital

1st Edition

Designing a Method for the Valuation of Intangibles

Authors: Daniel Andriessen
Paperback ISBN: 9780750677745
Imprint: Butterworth-Heinemann
Published Date: 17th December 2003
Page Count: 456

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Description

Peter Drucker has introduced us all to the knowledge era, where knowledge is the primary resource and intangibles (intellectual capital resources and assets) are now largely recognized as the most important sources of organizations' competitive advantage. With the recognition of the importance of Intangibles comes the problem of how to properly identify them and assign them a value within the corporation. This is an area of concern in 5 fields: 1) accounting and financial reporting, 2) performance measurement and management, 3) valuation in the finance field, 4) the Human Resources field in terms of management, strategy, and planning, and 5) Intellectual Capital. Over the past eight years, over 25 methods have been proposed for the valuation of intangibles coming out of these 5 fields.

In this book, Andriessen evaluates 25 existing methods of intangible valuation according to highly developed criteria. In performing his evaluations, Andriessen synthesizes the state of the art research from these fields based on extensive research. He then presents his own method for valuing intangibles, which he began developing and testing as a Senior Manager at KPMG Knowledge Advisory Services in The Netherlands. He relates six case studies in which this method was tested in actual companies, carefully reviews the results of his tests, and then concludes by offering a new and improved method for valuing intangibles in his Weightless Wealth Toolkit, a complete step-by-step process for identifying, valuing, and managing Intangibles to help managers operate successfully in the Intangible Economy.

Key Features

-Contains the only comprehensive and academically sound review and evaluation of existing methods for valuing intangible resources
-Well-known author from KPMG in The Netherlands -Includes a do-it-yourself toolkit for valuing intangible resources

Readership

Academics, in the field of Intellectual Capital, such as the attendees at the McMaster World Congress on Intellectual Capital, professors and students in Knowledge Management MBA and PhD programs worldwide, Chief Knowledge Officers and other executives charged with valuing and managing Intellectual Capital and other intangibles. Secondary market: specialists in valuation of intangibles in finance, performance measurement and management in HR/Consulting.

Table of Contents

Table of contents Preface and Acknowledgements xix

  1. Objective: Valuation and Measurement in the Intangible Economy
    1.1 Introduction
    The Intangible perspective
    The transformation of the economy
    Seven characteristics of the Intangible Economy
    Drivers of the Intangible Economy
    The Intellectual Capital community
    Valuation and measurement of intangibles
    Value
    Valuation
    Four ways to determine value
    Objective and problem
    My objectives
    Problem to tackle
    Methodology
    Practicing management research as a design science
    Using the developing multiple case study
    Structure of the book
  2. Methodology: The Science of Designing Practical Methods
    Introduction
    Making sense of the social world
    Distinctions make sense
    The world doesn't speak
    We know according to the way we are and the way we feel
    The social world does not sit still
    Social science
    Anything goes?
    How to test an empirical proposition
    How to test a practical proposition
    Bringing the two together
    Science follows its own rules
    Management research
    The subject of management research
    The scientific nature of management research
    My study
    The reflective cycle used in this study
    Difficulties in applying the reflective cycle
    The use of reconstructed logic
  3. Legacy: Methods for the Valuation and Measurement of Intangibles
    Introduction
    What: Distinctions & definitions
    Intellectual Capital
    In

Details

No. of pages:
456
Language:
English
Copyright:
© Butterworth-Heinemann 2003
Published:
Imprint:
Butterworth-Heinemann
Paperback ISBN:
9780750677745

About the Author

Daniel Andriessen

Before joining INHOLLAND University he worked as a management consultant for KPMG for over 12 years. He was founder of KPMG's Knowledge Advisory Services group in 1997, together with Dr. Rene Tissen. Together they have grown this group from 2 to 30 people, servicing clients all over the world in the field of knowledge management and intellectual capital valuation. Daniel received his PhD degree at Nyenrode University in The Netherlands and holds a masters degree in political and administrative science at the Free University, Amsterdam.

Affiliations and Expertise

Professor of Intellectual Capital, Inholland University of Professional Education, The Netherlands

Reviews

"A most insightful knowledge navigation book on valuing intangibles. It is a very good state of the art overview 25 methods and also trying out its own refined model with illustrative cases. A recommended reading both for the practicioner as well as the researcher." - Leif Edvinsson, The world's first professor on Intellectual Capital and the worlds's first director of IC. Honorary Chairman Henley college KM Forum "Weaving a fascinating blend of sharp analysis and story telling Andriessen describes the journey of a passionate group of experts pursuing one of the most challenging and elusive riddles in modern business - how do intangible resources create value for the firm? This insightful and sweeping exploration of both the underlying questions and their numerous proposed solutions from other contributors in the field offers a wonderfully lucid overview of a complex subject. Andriessen's passion for methodologies that are coherent, rigorous and relevant is contagious. The Weightless Wealth Toolkit draws from the best available intangible valuation tools and methods but takes them to the next level, offering a powerful and original contribution. Whether you are new to the questions around intangibles or already well versed in the field, you will find this an indispensable reference and guide." --Verna Allee, author The Knowledge Evolution and The Future Of Knowledge: Increasing Prosperity through Value Networks. "In "Making Sense of Intellectual Capital", Dr Andriessen has produced one of the most synthesising books on this important but challenging topic. This book provides a very valuable overview and evaluation of the managerial tools available to managers when it comes to better managing their intangible assets. I highly recommend this book to any manger of a firm that is charged with extracting value from its intangibles." -- Goran Roos