1. KNOWLEDGE MANAGEMENT (KM) Session # 20

2. Approaches to KM The Economic School The Strategic School
Three Schools of Thoughts:
The Economic School
The Organizational school
The Strategic School

3. Approaches to KM The Economic School Concerned with Measuring
Protecting, Managing to exploit
the firm’s knowledge or
intellectual assets to produce
revenue streams (or rent).

4. Approaches to KM The Economic School www.sveiby.com IC Management
Prof Karl Sveiby ( Sweden)

5. What is the value of an idea that comes in the flash of a second but
is based on a
lifetime of experience?”
Karl Erik Sveiby

6. Knowledge Transfer Within & Between Intangible Assets
Experts
Customers 3 9 1 2 € 7 4 5 8 6
Support Staff, Systems & Processes
Maximize the capacity of the whole firm to create value, by enhancing the capacity of individuals and teams to act effectively

7. Knowledge Transfer Within & Between Intangible Assets
Individual
Expertise
External Structures 3 9 1 2 € 7 4 5 8 6
Internal Structure
Maximize the capacity of the whole firm to create value, by enhancing the capacity of individuals and teams to act effectively

8. Intellectual Assets 1.MARKET ASSETS
Service Brands Product Brands Corporate Brands Champions Customers Customer Loyalty Repeat Business Company Name Distribution Channels Business Collaborations Franchise Agreements Licensing Agreements Favourable Contracts
1.MARKET ASSETS

9. Intellectual Assets 2. Intellectual Property Assets
Patent Copyright Computer Software
2. Intellectual
Property
Assets
Design Rights Trade Secrets Know-how Trade marks Service marks

10. Intellectual Assets 3.Human-centred Assets 4.Infrastructure Assets
Management Philosophy Corporate Culture Management Processes Impact of Information Technology Systems Networking systems Financial Relations Required Standards
Education Vocational Qualifications Work Related Knowledge Work Related Competencies

11. Sveiby’s Intangible Assets
Individual competence
For example:
Education
Experience
Viewed this way, individuals are seen as sources of wealth which should attract investment.
(c.f. Skandia’s “human capital”)
External structure
For example:
Brands
Customer relations
Supplier relations
Not normally taken into account because it is difficult to measure these with relation to business performance
Internal structure
owned by organisation
For example:
Management
Legal structure
Attitudes
R&D
Software
Traditionally taken into account in accounting management as “operational efficiency”

12. Intangible Assets Monitor (Sveiby)
Competencies External Internal
Structure Structure
G r o w t h / R e n e w a l
E f f i c i e n c y
S t a b i l i t y