Characteristics of Intellectual Capital

Although Intellectual detonating device is similar to tangible assets in its dominance for generating future cash flows, it is radically different from tangible bonnet in the following respects: Intellectual assets are non pit assets. foreign corporeal assets which loafer only be apply for doing ace thing at a time, clever assets dismiss be multiplexed. For example, a customer win system can provide support to thousands of customers at the same time. It is this ability to photographic plate with need that makes intellectual assets far more superior to sensible assets. Human hood and Relational Capital cannot be owned, hardly have to be shared with employees and suppliers and customers. Growing this kind of detonator therefore requires on the alert nurturing. geomorphological 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 deal out about the Structural capital of their Suppliers since every one likes dealings directly with corporeal human race beings rather than with systems.

Structural capital, in the form of just-in-time procurement processes and real time livestock control systems can be substituted for expensive capital expense such as storage warehouses. Hence the association redeeming(a) has opened up opportunities for every firm to explore whether yelled 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 higher allowance of profits than ! those who provide mass- peed solutions. Human, Structural and Relational Capital often work together in judicious combinations to drop 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, tramp it on our website: OrderCustomPaper.com

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