Knowledge
Management
and Intellectual Capital Definitions
Much has been written about intellectual capital and knowledge management and definitions vary widely. The Roster Network has developed a definition of intellectual capital that includes definitions of “knowledge” and “knowledge management.” We start with the definition of intellectual capital as it is an asset of the business that is often overlooked in the valuation of companies. In the industrial age, assets were bolted to the floor of the company’s facility. In the information age, assets are often the knowledge, skills, and experience of its employees, all of which constitute an important and valuable asset that deserves the same recognition and protection as other assets of the company.
Recognition that knowledge and its management are a component of this very valuable asset and thus the evaluation of the business is essential to understanding the importance of knowledge management.
In our view, Intellectual Capital consists of 4 parts:
1. Knowledge, or the capacity of employees to use their prior and current experiences, skills, knowledge and authority as defined, documented and communicated by objective job descriptions, systems and procedures to:
a.
perform
work activities they clearly understand;
b.
Use tools and processes they have been trained to use;