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Implementation of Comprehensive Intellectual

Capital Management

HMIC 5503 – Task 3Mohammad Rinaldi

Introduction

Universities are confronted with new challenges: Transformation of the science and innovation system New funding mechanisms and greater autonomy Demand for accountability and transparency

Intellectual capital has become a major driver for competitive advantage, not only for business but for universities and other service industries.

Comprehensive Intellectual Capital Management (CICM)

CICM refers to a comprehensive framework developed for the management of all forms of intellectual capital of an organization.

CICM is grouped under three stages as follows: Knowledge management stage Innovation management stage Intellectual property management stage

Hypothetical Organization

Universitas Siswa Bangsa Internasional (USBI) is a newly established private university in Indonesia

USBI’s vision is to become a sustainable, internationally-recognized university, which will help to build a better future for Indonesia

USBI is striving to cultivate a culture that embraces innovation, social responsibility, and personal initiative

Knowledge Management

Knowledge management (KM) is the process of transforming information and intellectual assets into enduring value.

The goal of KM stage under CICM model is to manage the knowledge resources of the organization for value creation.

Implementing KM in USBI

As a relatively young organization, USBI needs a cultural audit and transformation to implement a KM culture.

USBI culture has to be aligned with the concepts of KM which requires that information is shared.

In a culture that regards knowledge as power, USBI will require significant evolution and encouragement to make KM work.

Implementing KM in USBI

One of best way to share knowledge is by forming Communities of Practice (CoP).

USBI has initiated a CoP called Educators Sharing Network (ESN) to share knowledge efficiently.

The ESN include all USBI stakeholder – management, academic and administrative staff, students and parents, which will lead USBI to fulfill its vision.

Innovation Management

Innovation management (IM) is the stage at which value created KM stage is extracted by transforming knowledge into a product or a work process.

The goal of the IM stage under CICM model is to convert ideas into new or improved products, services, solutions, or processes.

Implementing IM in USBI

Universities are major players in the knowledge producing and innovation systems.

A standard, widely discussed and targeted measure of innovation is R&D activities.

USBI need to embodied R&D as its DNA, attached to every entity within the university, to enable innovation flourish in a university-wide setting.

Intellectual Property Management

Intellectual property management (IPM) is the stage at which the value created at KM stage, then extracted IM stage, is maximized to the optimal level.

The goal of IPM stage under the CICM model is to maximize the value created and extracted at the previous stages by using the legally defined and protected IC for two main purposes: securing strong competitive positions and generating revenues.

Implementing IPM in USBI

IP underpins all of the activity of a university – research results, know-how, technology ideas, publications, and a huge range of copyrights materials.

The four main areas of IP among others are: copyright, patents, trade marks, and design rights.

IP is at the heart of a huge array of USBI activities, and should therefore be considered a major tool those activities and achieve its vision.

Implementing IPM in USBI

USBI need to recognize how IP fits within its specific business model by performing an IP audit.

Currently, much of IP that USBI generated is to support its own teaching and research activities.

Moving forward, USBI have to develop strategies in supporting the process of translating knowledge with immediate application into wider society and economy

Conclusion

Implementation CICM enables a university to set overall ICM strategies that optimize the benefits that can be gained from use of their IC and to enhance knowledge transfer.

Although stages of CICM is the same across all institutions, it is the substance of unique academic setting of a university that differs the process.

References

Al-Ali, N. (2003). Comprehensive intellectual capital management: Step by step. Hoboken, NJ: Wiley.

Intellectual Property Office (2011). Intellectual asset management for universities.

Jundale, S., & Navale, G. S. (2009). Knowledge management in education. IEEE.