The transformation of business knowledge into intangible assets
| Published date | 01 January 2006 |
| DOI | https://doi.org/10.1108/03055720610667336 |
| Date | 01 January 2006 |
| Pages | 27-34 |
| Author | Annie Green |
| Subject Matter | Information & knowledge management |
KNOWLEDGE VALUATION
The transformation of
business knowledge into
intangible assets
Annie Green
George Washington University, Washington, DC, USA
Abstract
Purpose – Proposes that one should take a few steps back to engineer and understand one’s
knowledge blueprint, so that one can understand better and have more certainty in one’s outcome of
knowledge valuation.
Design/methodology/approach – This paper discusses knowledge valuation.
Findings – Businesses are chasing “knowledge” and implementing “knowledge” solutions, with not
a clue as to whether the knowledge they are chasing or using to solve business problems is achieving
the outcome towards which they are driving. In other words, there is no clear starting-point (baseline
measures) that can be monitored and tracked over time to ensure that the goal is being achieved, to
encourage abandonment if the results are not favorable, or to revise the goal if the outcome is
favorable. Notwithstanding, there are success stories in leveraging knowledge, but have businesses in
the knowledge era truly institutionalized the identification, capture and leveraging of knowledge to
adequately manage and control the intangible assets that contribute 70 percent of the value of a
business?
Originality/value – Contains useful information on knowledge valuation.
Keywords Knowledge management, Intangible assets
Paper type General review
Introduction
The business enterprise of today is not effective at accounting for and valuing a
significant portion of its valuation components. Intangible assets are of great
significance in understanding the gap between an enterprise’s book-to-market value.
Industry is in need of a methodology and valuation system that enables managers to
identify, document and value their knowledge (Bontis, 1998). Visibility of intangibles
enables the stakeholders of business enterprises to make cognizant decisions about its
future renewal and growth. Today’s enterprise needs a comprehensive methodology
that supports:
.the dynamic development and use of knowledge in an effective manner in the
execution of business activities (Sullivan, 1998, p. 87);
.the establishment of tools and indicators to manage innovation and increase
earnings within the business enterprise (Sullivan, 1998, p. 87);
.the use of knowledge in future development of a business enterprise value chain
(Von Krogh et al., 1998, p. 225);
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0305-5728.htm
Business
knowledge
27
VINE: The journal of information and
knowledge management systems
Vol. 36 No. 1, 2006
pp. 27-34
qEmerald Group Publishing Limited
0305-5728
DOI 10.1108/03055720610667336
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