The Importance of Intellectual Capital Management (ICM)Build a Knowledge Factory

By: Fransisca Katherina Rumambi [G1200547C]

This is a story of…

$22 billion

5 STEPS OF ICM MODEL

The Basis of Economy Has Changed!

Industrialeconomy Knowledge

economy

Let See How Google Did It

January 1996Larry Page and Sergey Brin

PhD Students of Stanford University

?Research Topic

Search engine

Resources of Organisation

Search engine

Source: Marr, Bernard, (2008), “Impacting future value: how to manage your intellectual capital’

Human Capital: Foundation

GIANT MASS PROBLEM

A lot of information in the internet but it was not easy to find

HOW TO FIND THE INTERCONNECTION OF ALL THE PAGES OF INFORMATION OUT

THERE

Structural Capital

BUILT SEARCH ENGINE• Model on how to find

information in the internet • Rate the quality and to show

the best quality first

New technology PageRank, where a website's relevance was determined by the number of pages, and the importance of those pages, that linked back to the original site.

Building a Knowledge Factory

Relationship Capital

Attract a lot of people that want to define things on the internet

THE USERS are the foundation of relationship capital

3 combinations in successful knowledge business:

Human, Structural and Relationship Capital

The search engine became so widely popular but IT WAS FREE

There was no money for them

Moved to Garage To Continue Their Work

What Google do next?

Got an Idea! The Rise of Paid Listings

AdSenseFroogle

Google approach for advertising definitely qualified as a revenue source.They always innovate with its products• Google Personalized Search• Google Analytics• Project Glass

Advertisers add a new category in Relationship Capital to Google business model

Over the past decade, Google has added its human resources to constantly working to improve the software

Larry Page and Sergey Brin

Key

Lear

ning!

Google: Leading Company

Key

Lear

ning!

Since its IPO, Google had launched a flurry of products that expanded its domain beyond web search such as Gmail, Google Maps, Google Books, Google Finance, Google Docs, Google Calendar, Google Checkout, and more.

Acquisitions of YouTube and DoubleClick had expanded Google’s presence in online video and display advertising.

Products like Gmail and Finance, along with personalization features offered on Google’s home page, moved the company toward portals like Yahoo! and Microsoft’s MSN.

Book Search, Maps, and Checkout suggested that Google was entering the traditional strongholds of e-commerce giants like eBay and Amazon.

Google’s ad-supported software, including email, calendaring, and document-management systems, threatened Microsoft’s Office and Windows offerings.

What Google do to maintain their IC: 5 Steps ICM Model

Identifying your intellectual capital (the current stocks of intangibles). Interviews, facilitated workshops, mail/online surveys because IC underpins competencies within an organisation.

Mapping the IC value drivers. To ensure that the strategy with all its IC value drivers is integrated and to enable easy communication of the strategy.

Measuring IC. It can provide us with meaningful information that helps to reduce uncertainty about IC and enable us to learn about the IC value drivers and its performance.

Managing IC. To inform us for decision making, to test and review strategy, to manage risks associated with IC.

Reporting IC. To provide information about the intellectual capital of an organization to its stakeholders. However different stakeholders (investors, analysts, employees) have different information needs.

References

Edelman, B. & Eisenmann, T. R, (2010), “Google Inc.”. Retrieved 16 January 2013, from http://brainmass.com/business/other/409895

Marr, Bernard, (2008), “Impacting future value: how to manage your intellectual capital’. Retrieved 15 January 2013, from http://media.journalofaccountancy.com/JOA/Issues/2008/09/MAG IntCapital-Eng.pdf

Pandia Search Engine News (2007), Google: One Million Servers and Counting”. Retrieved 15 January from http://www.pandia.com/sew/481-gartner.html