Integrative strategic workshops and simulation - Essay Example

The knowledge industry therefore has to deliver custom made solutions to its customers . Their close relationship is sometimes evident in their language as well. The features of the production are: flexible, creative, complex problem solving and dictated by the individual customers. As a future caution Sveiby has advised to adapt to the needs of their clients, to tailor-make their problem solving. They have to be very careful as to how they organise in order to make room for creativity and to maintain and develop the valuable knowledge of their employees as their prime assets.

The two major trends of knowledge management have been observed by Kasten (2007) . Financial institutions, particularly banks, operate on universal rather than local structures and have centralised organisation. These are interested in stability and position within the industry. These organisations do not rely on specialised knowledge as much as the healthcare sector hence have a less finely divided internal structure. Hospitals have decentralised knowledge organisations and are forever in the pursuit of innovative and useful knowledge.

These healthcare organisations are human based rather than technology based as are the financial institutions (Kasten 2007). . organizations. Available http://www.sveiby.com/articles/KnowledgeStrategy.htmTask 2 invisible balance sheet: Nokia has about $ 183 billion worth of intangible assets coming from the difference between market value of $ 190 billion and book value of 5.7 billion. These invisible assets, which no accountant mentions, comprised of patents , concepts, models and computer systems etc (internal structures), The brand name, image, trademarks, customer and supplier relationship (external structures).

The intangible assets are generally not liquid and are self finances since banks do not finance these. The third category of internal assets is values, experience ,education and social skills of employees. The invisible balance sheet measures internal assests. In Aug 2001 Nokia lost assets worth & 86 billion yet remained a market leader in telecom sector. The loss was of the invisible assets while its visible assets remained high. Bhutoria (N. D.) states that besides the customer base and strength of operation, a company has human capital as important asset.

After all it is the human capital that ensures smooth running of operations and acquiring and retaining the customers. An employee is professional when he is an expert in his chosen field, he may be a role model for others. A person has a set of competencies each of which has a value. When such a person leaves the organisation that much capital is lost. An employee's expected economic value to the firm corresponds to the future earnings of the employee for the remaining active service life.

It should also include career movement or possibility of employee leaving the organisation. However, since it is difficult to evaluate employees on individual basis so a group valuation should rather be performed