“Transforming knowledge into a competitive advantage”
In today’s competitive global market, value creating factors for companies are changing. Traditional financial instruments and management tools are not sufficient to capture key value drivers that affect long-term success of the companies. Intellectual capital management, therefore, enables companies to measure and manage their non-financial and intangible assets in order to make better assessment about their capabilities and performance.
Intellectual capital refers to the assets that are not shown in traditional balance sheets, and yet critical for a company’s future success. It is composed of three main categories: human capital (knowledge, skills, and competencies), structural capital (organizational structures, processes, patents, and databases), and relationship capital (customers, brand, and networks).
The systematic analysis and effective management of these resources enable companies build competitive advantage, moving them beyond traditional performance measurement systems. IC Rating™* is the comprehensive measurement and management tool that is used to measure the non-financial, intangible assets and contributes to a company’s performance in the following areas:
- To assess a company’s relationship network and knowledge that are crucial for implementing strategies effectively.
- To prioritize research and development investments.
- To identify areas of improvement and create human resources development programs.
- To improve intellectual properties and structural capital.
- To identify key risk areas and provide basis for reengineering projects.
- To assess the value creating drivers of a company.
* ARGE delivers the “IC Rating” service in collaboration with ”Intellectual Capital Sweden”.