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Trend Report – Oct 04, 2003

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Report from the First PMA Intellectual Capital Research Symposium held in Cranfield, UK, 1-2 October 2003,

News categories: The New Economy Economics, Finance and Acounting, Performance Management and Controlling, Investor and Stakeholder Relations

 

On 1-2 October 2003 the Performance Management Association (PMA) held its first Intellectual Capital Symposium under the title “Research and Theory in Intellectual Capital” in Cranfield, UK. The symposium was organized on behalf of PMA by the Centre of Business Performance, Cranfield School of Management and chaired by Bernhard Marr and co-chaired by Göran Ross – who are both professors at the Centre. The symposium brought together 28 experts and leading researchers in the field of IC / Intangible Assets from around the world – from the academia as well as practitioners. 

 

See also: Report from the Second PMA Intellectual Capital Symposium held in New York City, USA, 15-16 December 2005  

 

 

Background

 

The IC Symposium complements a series of conferences and symposia that have been sponsored by the PMA since it’s launch in 1998. To date, the organization has sponsored three conferences for the emerging performance measurement community, attracting several hundred participants each time. In the intervening years, the PMA has sponsored the debate of a small group of no more than 20 academics and practitioners in focused Symposia. The 1999 and 2001 PMA Symposia were held at Cambridge and Queens Universities respectively. The next conference will be held 28-30 July 2004 in Edinburgh, UK (see the Trend Report from Aug 05, 2004). The conference “Creating Organisational Value using Intangible Assets” will be held at the Cranfield School of Management on May 6, 2004 (including also a presentation by Juergen H. Daum).

 

The format of the Symposium was deliberately different to that of traditional academic and practitioner conferences. Participation was by invitation only and significant time was made available for discussion and critique, rather than lecture style presentations. Part of the discussion during the Symposium was about the newly formed Performance Measurement Association’s Intellectual Capital Group, covering both the progress to date and forward plans. The intention was to provide an opportunity for the Board of the PMA IC Group, most of whom will be present at the Symposium, to comment on these plans and make further suggestions about how the Group can be developed.

 

Aims of the Symposium

 

The aims of the Symposium were to:

·        Provide a forum where leading researches active in the field of IC performance measurement and management can present their work to peers and have it discussed. 

·        Enable a dialogue about the boundaries of the field of IC and the forward research agenda.

·        Contribute to the further development of the PMA IC Group as an international and multidisciplinary forum.

 

The 2003 Symposium’s intention was to address the important issue of research and theory in intellectual capital measurement and management. This includes themes such as:

·        What is the underlying theory in the field of IC?

·        Is intellectual capital a research field in its own right? And if so, what are the implications for the departmentalized management field?

·        How do we address the theoretical discussion of IC measurement?

·        Is it possible to measure knowledge? And if so how do we define measurement in this context?

·        How can we address the tension between high quality research and practitioner relevance?

·        Are there any implications for research methodology? And should there be a stronger focus on quantitative research?

·        What is the role of epistemology and ontology in this field?

·        What are the research themes that need to be addressed in order to take the IC field to the next level?

 

Deliberately the number of people invited to the Symposium will were limited and participation was possible by invitation only. This should ensure that sufficient time was made available for presentation and discussion, without having to resort to multiple streams of presentations. 

 

Presentations held

 

Theme: Intellectual Capital and Knowledge Management:

 

·        From managerial knowledge to organisational capability
Robert Grant, Georgetown University, USA & Anjali Bakhru, Open University Business School, UK

 

·        Assessing intangibles by IC mapping in Collaborative networks
Stephen Evans & Norman Roth & Ron Dvir, Cranfield University, UK

 

·        Managing Intellectual Capital for Company Creation
Giovanni Schiuma, University of Basilicata, Italy  & Bernard Marr, Cranfield University, UK

 

 

Theme: Disciplinary Perspectives on IC:

 

·        Mathematics and Modern Business Management
Steve Pike, ICS Ltd. London, UK & Göran Roos, Cranfield University School of Management, UK

·        Accounting for Intellectual Capital: A discussion of its theorectical foundations
Robin Roslender, University of Stirling

·        Evaluating Human Capital: An exploratory study of management practice
Harry Scarbrough, Warwick Business School, UK & Juanita Elias, Manchester University, UK

 

 

  Theme: Researching and Reporting IC:

 

·        Reporting on Intangibles: an organisational “Implicit Order”
Ahmed Bounfour, University of Marne La Vallee / East-Paris, France

·        Intellectual Capital Reporting: Content approaches to data collection
James Guthrie, Macquarie Graduate School of Management, Sydney, Australia

 

  Theme: Valuation of Intellectual Capital:

·        IC Valuation & Measurement
Daniel Andrissen, Nyenrode University, The Netherlands Business School, The Hague, Netherlands

·        Intangible Assets and the need for a holistic and more future oriented approach to enterprise management and corporate reporting
Baruch Lev, Sloan School of Business/New York University, USA & Juergen H. Daum, SAP AG, Germany
presentation at the symposium (PPT slides as PDF)              article (PDF)

·        Challenges and Opportunities for Creating Comparability in Valuing Intangibles
Jon Low, Cap Gemini Ernst & Young, USA & Karin Grasenick, Joanneum Research, Institute of Technology and Regional Policy, Graz, Austria

·        Valuation of Intellectual Capital and Real Options
Sudi Sudarsanam, Cranfield School of Management, UK & Ghulam Sorwar, Cardiff Business School, UK & Bernard Marr, Cranfiled School of Management, UK

 

Discussion in Working Groups on “Knowledge Economy and Research Methods and Methodologies”:
One of the outcomes of the discussion was, that academic researchers and practicers need a common language: an initiative is needed to establish a common terminology in the area of Intellectual Capital / Intangible Assets Management

 

Theme: Theoretical Views on Intellectual Capital:

·        Measuring and Intervening: Indicating and Crafting Intellectual Capital Effects
Jan Mouritsen, Copenhagen School of Business, Copenhagen, Denmark

·        Building a General Theory of Intellectual Capital
Josep Maria Viedma Marti, Polytechnic University of Catalonia, Barcelona, Spain

·        Theorie and Method of Intellectual Capital Creation
David O’Donnell, The Intellectual Capital Research Center of Ireland, Ballyagran, Ireland

 

 

Summary

 

Intangible Assets and Intellectual Capital, the immaterial corporate values, play a key role in today’s value creation systems of organizations – in business as well as in not-for-profit organizations. The symposium’s mission was to investigate the issue from several angles and the contributors and presenters at the symposium presented many different views on how IA and IC can enhance the capability of an organization to create value. Most participants came from the academic area. The next step should be to move more into practical application concerning an active Intangible Assets Management  and to work with organizations and practitioners in organization to find out, what will really work on a day-to-day basis and what does not work. This next step is planned at the Cranfield School of Business with the conference planned for May 6, 2004 on ““Creating Organisational Value using Intangible Assets” where mostly practitioners will present and will form the core group of the participants.    

 

 

 

Additional Resources:

 

J.D.s presentation at the symposium (PPT slides as PDF)

Baruch Lev's and Juergen H. Daums article/paper they have written for the symposum (PDF)

Interview with Juergen H. Daum: Intangible Assets and the art to create value

Juergen H. Daum's book on: Intangible Assets and Value Creation, Wiley 2003

Why a new Management System ? –article by Juergen H. Daum

Interview with Baruch Lev: Accounting, Reporting and Intangible Assets

Interview with David P. Norton: "Intangible Assets and the Balanced Scorecard"

Interview with Leif Edvinsson: Intellectual Capital: the new wealth of corporations

J.D.’s Beyond Budgeting Info Center

J.D.’s Best Practice Channel – Finance

J.D.’s Trend Reports

 

 

Related Trend Reports: 

Report from the Second PMA Intellectual Capital Symposium held in New York City, USA, 15-16 December 2005

Intangible Assets and Value-Based Network Control in the Automotive Industry. Part 1: The role of a intangibles-based analysis of the value creation system – the example of Toyota

The dominance of intangible assets: consequences for enterprise management and corporate reporting 

Vector-Based Performance Measurement: Linking the Subjective and Objective Dimension into One System of Performance Measurement

Report from the First PMA Intellectual Capital Research Symposium held in Cranfield, UK, 1-2 October 2003

Value drivers intangible assets and intellectual capital: implications for the reporting, management and corporate governance practice – report from a workshop in Copenhagen with experts from Sweden, Denmark and Germany

A European Peer Discussion: “Measuring and Managing Intangible Values in Today’s Economy”

The book of the month: “Building Public Trust: The Future of Corporate Reporting” by Samuel A. DiPiazza Jr. and Robert G. Eccles

Intangible Assets: a central topic at the mySAP Financials conference in Strasbourg

Corporate Performance Management: Managing profitability and growth in the new environment

Why companies need new management systems to achieve sustained profitability - especially in difficult economic times

Approaching the next level of shareholder value management – the art of corporate performance management (part 2)

Approaching the next level of shareholder value management – basics (part 1)

The book of the month: “Good to Great: Why some companies make the leap…and others don’t” by Jim Collins

How to create value with Real Options based innovation management

The new FASB rules for reporting on Intangible Asset - The U.S. versus the European way

The book of the month: “Intangibles: Management, Measurement, and Reporting” by Baruch Lev

The book of the month: “Ownership and Value Creation – Strategic Corporate Governance in the New Economy” by Rolf H. Carlsson

How Systems Thinking / Systems Dynamics helps to identify limits to growth to boost innovation value

How scenario planning can significantly reduce strategic risks and boost value in the innovation chain

How accounting gets more radical in measuring what really matters to investors

The book of the month (May / June): “The Value Reporting Revolution” by Robert G. Eccles, et al.

“The Mind of the C.E.O” by Jeffrey E. Garten

The Book of the Month: “The Strategy-Focused Organization” by Robert Kaplan and David Norton  

 

  

More about Enterprise Management Best Practice and related topics will be continued in Juergen Daum’ Trend Reports. To subscribe for Juergen Daum’s free-of-charge e-mail newsletter (a regular summary of the recent reports) click here 

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