Intellectual Property and Development - Research Paper Example

Intellectual Capital By Devangini Mahapatra Chauhan Traditionally, organisations have been seen to work on the premise of three basic factors of production – land, labour and capital. These three factors have been hailed as equally important with labour always having occupied a special place of importance. In this regard, the three factors of production were enough to nicely and simply sum up the requirements of an organisation. The modern day organisation used four factors of production or four basic categories of resources: land, labour, capital and expertise. With the advent of various technologies and trends like globalisation, there has been a strong emphasis on the growth of manpower development along the lines of securing employees as long term assets in whose hands the growth of company lies. This is where the term expertise comes in. Objective and Quotation Expertise means many things to many people due to the sole reason that it includes a lot of elements that contribute to the organisation strength when it comes to the achievement of goals. This has basically been used in Non governmental organisations, but has recently been added to every corporation’s list of priorities. (Grandstand, 1999) This brand of expertise gives rise to intellectual capital through a strategic growth and development process of the organisation’s human capital. This paper deals with the study of intellectual capital within the corporate sphere in terms of its brand asset relevance aspect. In this respect, it has been realised that intellectual capital needs to be measured to chart and track the course that is being followed by the organisation and the people within it, as far as reaching and achieving goals is concerned. The organisation that will be dealt with here is Skandia – the pioneer. The objective is to study the relevance and reliability of the brand assets and their value in terms of this company. The methods chosen for this are the various models proposed by Brooking and Malhotra that help determine the elements and parameters within which IC can be studied to find out how the same contributes to the value of the brand asset at Skandia. These models have helped develop a specific brand strategy through a focus on various elements like IC, Organisational Change, Consumerism, Knowledge management and various other factors, so as to help determine the areas of applicability within the organisation so as to carry out growth and development. Evidence: Applicability Whether it is in the Research and Development department or the marketing department of the organisation, this term has been categorised to imply a lot of things which an employee must possess for the relevant department in terms of characteristics of basic mental competency. (Blackburn, 2003) Skandia, in this regard has made giant strides in the achievement of auditing toolkits and achieving IC metric practices in the second generation, through the use of the auditing toolkits provided by Brooking – the technology broker. Skandia is one of the first companies in the world that has conceptualised intellectual capital and recognised the same as a strategy for building a brand asset. This in turn, has given the brand competitive advantage and competency through its intellectual capital base, which makes its manpower a ‘thinking’ capital and not just a ‘doing’ capital. This competency has a strong nexus with the competitive advantage that an organisation has and the quality of the same. This level of competitive advantage is the primary tool in measuring the IC in the organisation. The characteristics of this competency may be creativity, foresight and intellect, among numerous others. In this regard, we will delve further into the intellect part of things, as this paper deals with the concept of intellectual capital. (Buigues, 2000) Intellectual Capital As a nunace of the manpower strength within organisations, intellectual capital has been defined in relation of international marketing and knowledge management to ensure that the uniue innovations that take place within the organisation are the whole and sole property of the same. (Brooking, 1998) Intellectual capital may be defined as that resource of the organisation which depends on the thinking capacity of the indivudal employees which yeilds results in terms of innovations and other such factors within the organisation. This capital is implemented through a strong focus on creativity and creation of a knowledge base. (Andrissen et al, 2000) This area also has a strong connection with economics where it is known as an “intangible”. According, it has been given intellectual rights as a capital asset which has great worth for the organisation in terms of cost effectiveness and productivity. (Blackburn, 2003) Organizational Change/Implementation Strategy Models As an analytical tool to measure the intellectual capital, the 7-S Model shows the complexity of change that Skandia undergoes in terms of defining its brand identity as an asset derived from its wide intellectual capital base. (Grandstand, 1999) This complexity comes from the existence of a variety of organizational resistant systems, difficult paradoxes, and the many interconnected variables involved. In this regard, it has been assumed that a change effort must adhere to various issues at the same time to be effective. These issues include the following: Strategy, Structure, Systems, Style, Staff, Shared Values, and Skills. (Brooking, 1998) Through a demonstration of the interdependence of these elements on each other, this model is a summary of the factors that are required for the growth and success of the organisation through a process of strategic implementation. This will further its image and people will come to recognise it on the basis of the brand identity, which in run will contribute to the value of the brand asset. In this regard, the model demonstrates the fact that through the environment of strategic change, the organisation will manage to nurture its intellectual capacity and thus build a strong base for its intellectual capital. (Brooking, 1998) It does so by measuring the discrepancies that exist among its various elements that adhere to change as discussed above. In this context, the following table will show a more analytical side of things, which can be applied effectively to Skandia: Source: Journal of Business and Public Affairs Consumerism One of the prime features of Skandia has been its ability to recognise consumersim in all of its plans and policies as a separate market entity and mechanism that helps build its brand asset. In various industries, the primary focus of intellectual capital is in areas that require transfer of technology or training to sue the same due to which organisations feel that the particular technology they are marketing must be patented to them for the sole purpose of retaining the right to call it their won innovation. (Brooking, 1998) This has been used by Skandia to procure a certain amount of exclusivity as elemntray in its brand identity and brand asset value. In the world of consumerism, there are no new inventions anymore, which has led to an increase in the strict guarding of original ideas and concepts which consumers buy from organisations for the sole reason of exclusivity. As per Skandia, its definition and handling of intellectual capital issues depends on consumerism studies in various parts of the globe so as to find a variety of contextual frameworks within which it can apply to build a wide product and service base which will in turn contribute positively to its brand asset value. In this context, Skandia believes that consumersim has give rise to a desire for exclusivity with a colossal deposit of disposal income available to people all over the world, especially in the third world countries where due to the rise in BPO activities, there is a greater awareness now more than at any other time in the past, regarding the nuances of knowledge management. (Andrissen et al, 2000) Knowledge Management and IC Measurement Knowledge management has a strong nexus with the conception of intellectual capital at Skandia due to its focus on garnering optimum utilisation of its human capital’s thinking capacity. This thinking capacity can develop through a coordinated system of information transmission. Dr. Yogesh Malhotra, has laid down the ways in which IC can be calculated in his paper for the United Nations Department of Economic and Social Affairs, titled Measuring National Knowledge Assets: Conceptual Framework and Analytical Review. The following adheres to the elements of the knowledge management criteria for measuring IC in Skandia. These are as follows: New National Wealth – Knowledge Assets Read More