Leveraging Intellectual Capital

By | September 29, 2014

The power of leveraging Intellectual Capital is significant, with industries and businesses that are consciously competent in their Intellectual Capital being closely linked with:

  • Higher profitability
  • Possessing greater market leverage
  • Harnessing increased product differentiation and uniqueness
  • Better equipped to successfully transition from products into services

In today’s service economy Intellectual Capital is increasingly difficult to defend, resulting in short-lived market advantage and a need for continual reinvention and the effective capturing and exploiting of an organisation’s IC. It is therefore essential that businesses fully leverage the following two key aspects of their Intellectual Capital:

Understand and Managing Intellectual Capital:

  • To ensure application into market opportunities. – The true value of IC is only valuable if it is fully exploited within the market place
  • To leverage IC assets across the business. – IC that resides in one area of the business should be exploited in all applicable areas
  • To protect the IC portfolio – Preventing or delaying competitors from catching up
  • To maximise company value – Defensible IC significantly increases the market value of businesses

Gain sustainable advantage from Intellectual Capital:

  • Future investment requirements and portfolios – Developing the right IP to address tomorrows needs
  • Business divestment and targeting decisions – Maintaining IC rich business and exiting low IP activities.

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