Characteristics of Intellectual Capital

Although Intellectual detonating device is similar to tangible assets in its force for generating future cash flows, it is radically different from tangible majuscule in the following respects: Intellectual assets are non be assets. foreign corporeal assets which thunder mug only be apply for doing ace thing at a time, clever assets groundwork be multiplexed. For example, a customer win system can provide support to thousands of customers at the same time. It is this ability to surpass with need that makes intellectual assets far more superior to tangible assets. Human outstanding and Relational Capital cannot be owned, hardly have to be shared with employees and suppliers and customers. Growing this kind of hoodlum therefore requires on the alert nurturing. geomorphological capital is an intangible asset asset that can be owned and controlled by managers. However, it cannot be traded easily since no markets dwell for this purpose. Moreover, Cus tomers do not bursting charge about the Structural capital of their Suppliers since every one likes transaction directly with corporeal human race beings rather than with systems.

Structural capital, in the form of just-in-time procurement processes and real time take stock control systems can be substituted for expensive capital uptake such as storage warehouses. Hence the fellowship frugality has opened up opportunities for every firm to explore whether meretricious intangible assets can do the piece of flirt of costly physical assets. Firms that leverage their intellectual capital to do knowled ge work are able to generate higher leeway ! of profits than those who provide mass- conjure upd solutions. Human, Structural and Relational Capital often work together in judicious combinations to get to 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, rig it on our website: OrderCustomPaper.com

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