need report on chapter 3 and chapter 4 only
Suresh-
chapter4.pptxRECOGNIZING A FIRM’S INTELLECTUAL ASSETS: MOVING BEYOND A FIRM’S TANGIBLE RESOURCES
CHAPTER 4
FLOW OF PRESENTATION
The Central Role of Knowledge in Today’s Economy
The Central Role of Knowledge
Human Capital
Retaining Human Capital
Social Network Analysis
Protecting the Intellectual Assets of the Organization: Intellectual Property and Dynamic Capabilities
The Central Role of Knowledge in Today’s Economy
Intellectual capital is a measure of the value of a firm’s intangible assets – the difference between a firm’s market value & book value. It includes these assets:
Reputation
Employee loyalty & commitment
Customer relationships
Company values
Brand names
Experience & skills of employees
BOOK VALUE VS MARKET VALUE
The book value is literally the value of the company according to its books (balance sheet) once all liabilities are subtracted from assets.
The market value is the value of a company according to the financial markets. The market value of a company is calculated by multiplying the current stock price by the number of outstanding shares that are trading in the market. Market value is also known as market capitalization.
Comparing the book value to the market value of a company can also help investors determine whether a stock is overvalued or undervalued
The Central Role of Knowledge in Today’s Economy
Bill Gates has reflected that if 20 of Microsoft’s key people were to leave, the company would risk bankruptcy.
In a study by the Corporate Leadership Council, a computer firm recognized 100 “core competent” out of 16,000 employees; and a transportation group deemed 20 of its 33,000 employees as really critical.
THE CENTRAL ROLE OF KNOWLEDGE
Human capital includes the individual capabilities, knowledge, skills, and experience of the company’s employees and managers.
Social capital includes the network of relationships that individuals have throughout the organization.
Knowledge includes:
Explicit knowledge – codified, documented, easily reproduced, and widely distributed
Tacit knowledge – in the minds of employees, based on their experiences and backgrounds.
Organizations that use and recognize the employees' wealth of tacit and explicit knowledge achieve a competitive advantage.
TRANSFER OF TACIT KNOWLEDGE IS ESSENTIAL
Decades ago, Polanyi (1966) explained that people “can know more than they are able to tell.”
There is increasing evidence that tacit knowledge is “the important strategic resource that assists in accomplishing a task (Woo, 2004).
Tacit knowledge is often demonstrated as “practical intelligence” rather than “abstract, academic intelligence.”
WAYS TO TRANSFER TACIT KNOWLEDGE
Collaboration and Social Networks
Show Your Work
Book: Show Your Work, Bozarth (2014)
On June 20, 2013, Rafael J. Grossmann, was the first surgeon to demonstrate the use of Google Glass during a live surgical procedure. In August 2013, Google Glass was used at Wexner Medical Center at Ohio State University. Surgeon Dr. Christopher Kaeding used Google Glass to consult with a distant colleague in Columbus, Ohio. A group of students at The Ohio State University College of Medicine also observed the operation on their laptop computers.
Storytelling
It shouldn’t be surprising then, that organizational stories are considered an effective way to capture and transmit tacit knowledge
Tracking Lessons Learned
Guided Experience
https://www.youtube.com/watch?v=4EvNxWhskf8
Human Capital
ATTRACTING HUMAN CAPITAL THROUGH ESTABLISHING A REPUTATION FOR GROWTH AND DEVELOPMENT
PepsiCo and Procter & Gamble also have traditionally enjoyed similar reputations. In recent years, companies such as Cisco, Campbell Soup, and Google.
Indian software firm Infosys Technologies has been “discovered” as a company with a deep reservoir of managerial talent. This innovative firm runs a 334-acre training institute, even bigger than GE’s. internationally. Provides one year training to managers.
DEVELOPING (Monitoring) HUMAN CAPITAL
Training and development must take place at all levels of the organization.
Requires the active involvement of leaders at all levels
Includes mentoring & sponsoring lower-level employees
Emphasizes the need to monitor progress & track development so knowledge can be shared
At P&G, people and positions are tracked via its technology-based talent management system. It accommodates all the firm’s 95,000 employees, 66.83 billion USD
P & G PRODUCTS
Ariel, Dawn dishwashing, Gillette razors, Head & Shoulders shampoo
Olay personal and beauty products, Oral-B inter-dental products
Pampers & Pampers Kandoo , Pantene haircare products , Tide laundry detergents and products , Vicks cough and cold product
RETAINING HUMAN CAPITAL
Provide challenging work and a stimulating environment.
Offer financial and nonfinancial rewards & incentives.
While American workers often aim to maximize their productivity by tapping out emails on BlackBerrys or working on their laptops.
Koreans and Japanese are more likely to be using the latest digital devices to play videogames or send messages to friends
WHAT MAKES GOOGLE SO GREAT TO WORK FOR?
Google staff, or Googlers, are everything to the company as it commits to encourage innovation. Google began in January 1996 as a research project by Larry Page and Sergey Brin when they were both PhD students at Stanford University. Google’s :$27.77 billion revenue
WHAT MAKES GOOGLE SO GREAT TO WORK FOR?
Google even offers death benefits to deceased employees' families. If a Google employee passes away, his or her domestic partner or spouse receives a check for 50% of the employee's salary every year for 10 years.
Google also offers a Global Education Leave program,
To help with morale, employees are free to bring their pets to work.
WHAT MAKES GOOGLE SO GREAT TO WORK FOR?
Google offers on-site physicians, nurses, medical services and health care coverage to keep its employees happy and healthy. Googlers can travel without worries; employees are covered with travel insurance and emergency assistance on both personal and work-related vacations.
Google also offers some of the best paid parental leave for new parents. Its employees have paid leave up to 18 weeks if the father is the primary caregiver. Mothers are still entitled to 22 weeks of maternity leave
SOCIAL NETWORK ANALYSIS
Thus, the development of “social capital”—friendships and working relationships among talented individuals, helps to tie knowledge workers to a given firm.
The aim of social network analysis is to understand a community by mapping the relationships that connect them as a network, and then trying to draw out key individuals, groups within the network.
Example: Social Network Analysis
NETWORKS & ELECTRONIC TEAMS: SHARING INFORMATION & ENHANCING COLLABORATION
Justin Kruger, of New York University’s Stern School of Business, has found that as few as 50 percent of users grasp the tone or intent of an e-mail.
The U.S. Bureau of Labor Statistics (BLS) reports that the average person working 45 hours per week earns 44 percent more than someone who works only 40 hours
Business has undervalued the social dimension of communication.
Protecting the Intellectual Assets of the Organization: Intellectual Property and Dynamic Capabilities
Apple has finally won $120 million from Samsung in slide-to-unlock patent battle
REFERENCES
"Apple Inc. v. Samsung Electronics Co. Ltd. et al". United States District Court, Northern District of California. Retrieved August 11, 2012.
Barrett, Paul M. (March 29, 2012). "Apple's War on Android". Bloomberg Businessweek. Bloomberg. Retrieved March 29, 2012.
Albanesius, Chloe (September 14, 2011). "Every Place Samsung and Apple Are Suing Each Other". PC Magazine. Ziff Davis. Retrieved August 11, 2012.
Pyett, Amy; Feast, Lincoln; Davies, Ed (October 27, 2011). "Australian court to fast-track Samsung appeal on tablet ban". Reuters. Sydney: Thomson Reuters. Retrieved August 11, 2012.
Müller, Florian (July 24, 2012). "Apple seeks $2.5 billion in damages from Samsung, offers half a cent per standard-essential patent". FOSS Patents. Retrieved July 28, 2012.
"U.S. ITC says Apple infringes Samsung patent, bans some products". Reuters. 2013-06-04.
REFERENCES
Source: Crainer, S. & Dearlove, D. 1999. Death of executive talent. Management Review, July–August: 22.
Source: Anonymous. 2011. Best companies to work for 2011. www.finance.yahoo.com. January 20: np.
Source: McGregor, J. 2009. CEO breeding grounds: Looking beyond GE and P&G for talent. Bloomberg Businessweek. April 11: 38
Source: Anonymous. 2011. Best companies to work for 2011. www.finance.yahoo.com. January 20: np.
Source: Anonymous. 2007. Why telecommuting remains rare in Japan, South Korea. Wall Street Journal. March 17–18: A5.
Source: Brady, D. 2006., *!?@ the e-mail. Can we talk? BusinessWeek, December 4: 109.
REFERENCES
Bozarth, Jane (2014). Show Your Work. San Francisco: Wiley.
Eraut, M (2000). Non-formal learning and tacit knowledge in professional work. British Journal of Educational Psychology, 70,113-136.
Harris, R. (2009). Improving tacit knowledge transfer within SMEs through ecollaboration. Journal of European Industrial Training, Vol. 33 Issue: 3, pp.215-231.
Hedlund, J. et. al. (2003). Identifying and assessing tacit knowledge: understanding the practical intelligence of military leaders. The Leadership Quarterly 14, 117–140.
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