© josé m. viedma marti, 2001. i c the 3th world congress on intellectual capital josé maría...

© José M. Viedma Marti, 2001.

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The 3th World Congress on Intellectual CapitalThe 3th World Congress on Intellectual Capital

José María Viedma MartiProfessor of Business Administration at the Polytechnic University of Catalonia

and President of Intellectual Capital Management Systems

OICBS Operations Intellectual Capital OICBS Operations Intellectual Capital Benchmarking SystemBenchmarking System


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Any business sectorAny business sector

Excellent competitor

Own company

?

• Multinationals acceleratethe process

BIG COMPETITIONBIG COMPETITION

COMPETITIVE “GAP”

• Interlinked economy• Global markets• World = Global village• Telecomunications• Transportation• Strategic alliances• Strategic networks• Franchise• Cooperation agreements

Global MarketplaceGlobal Marketplace


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Industrial Complex at Castrette (Benetton)


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Benetton’s Store


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Zara’s Store


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Sources of excellence or sustainable competitive advantageSources of excellence or sustainable competitive advantage

Most meaningful paradigmsMost meaningful paradigms

ManagementManagement Strategic ManagementStrategic Management

Virtual corporationVirtual corporation ··Resource based viewResource based view• Networking organisationNetworking organisation• Intelligent enterprise Intelligent enterprise • Knowledge creating companyKnowledge creating company• Learning organisationLearning organisation• Horizontal organisationHorizontal organisation• Centerless corporationCenterless corporation• Innovative organisationInnovative organisation

Conclusion: Knowledge and intellectual capital are theConclusion: Knowledge and intellectual capital are theonly sources of sustainable competitive advantagesonly sources of sustainable competitive advantages


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Strategy formulation: Shifting from an industry Strategy formulation: Shifting from an industry focus to a resource focusfocus to a resource focus

The FirmThe FirmThe FirmThe Firm

• Goals and ValuesGoals and Values

• Resources and CapabilitiesResources and Capabilities

• Structure and SystemsStructure and Systems

• Goals and ValuesGoals and Values

• Resources and CapabilitiesResources and Capabilities

• Structure and SystemsStructure and Systems

• CompetitorsCompetitors

• CustomersCustomers

• SuppliersSuppliers

• CompetitorsCompetitors

• CustomersCustomers

• SuppliersSuppliers

The Industry The Industry EnvironmentEnvironmentThe Industry The Industry EnvironmentEnvironment

StrategyStrategyStrategyStrategy

The Firm-Strategy InterfaceThe Firm-Strategy InterfaceThe Firm-Strategy InterfaceThe Firm-Strategy Interface The Strategy-Environment InterfaceThe Strategy-Environment InterfaceThe Strategy-Environment InterfaceThe Strategy-Environment Interface

Source: Robert M. Grant 1998.


iCBased on Robert M. Grant 1998

Strategy

Key success factorsBest in class competitors

Core capabilities

Competitiveadvantage

Resources

Tangible Intangible

Physical

Financial Human StructuralRelational

The relationships among resources, capabilities and The relationships among resources, capabilities and competitive advantagecompetitive advantage

Core capabilities = Core competencies = Intellectual capitalCore capabilities = Core competencies = Intellectual capital


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Endowments- Installed base of customers- Brand & image- Network of suppliers- Network of talent-Ownership of standards

Skills & Tacit Knowledge

- Know-how- Talent-Competencies

Collective Values & Norms

- e.g. Client focus,Reliability, Quality

Technology & Explicit Knowledge- Patents- Manuals- Procedures

Processes

- Leadership & Control-Communication -Management Information

Unique bundle ofintangible assets

(=corecompetence)

A core competence as a unique bundle of intangible assets

(Andriessen, 2001)


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TA

NG

IBLE

RES

OU

RC

ES

Process A

Company Value Creation TreeCompany Value Creation Tree

Process C

Product A

Service B Service C

COMPETENCIES

KNOWLEDGE KNOWLEDGE KNOWLEDGE KNOWLEDGE KNOWLEDGE

HUMANCAPITAL

INTANGIBLE RESOURCES

STRUCTURALCAPITAL

RELATIONALCAPITAL

INTELLECTUALCAPITAL

PRESENT(Value Extraction)

Process A

Service A’

Product A”

Pro

cess

B

Product B’

Process C

Process C

Product C’

Service C”

CAPABILITIESKNOWLEDGE

Pro

cess

B

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© Intellectual Capital Management Systems


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Business Process Value ChainBusiness Process Value Chain

CustomerNeed

Satisfied

CustomerNeed

Satisfied

Customerneed

Identified

Customerneed

Identified

InnovationValue Chain

InnovativeProducts and

Services

CurrentProducts and

Services

OperationsValue Chain

PROJECTS CURRENTPROCESS


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What to Benchmark ?What to Benchmark ?

• Business design•Key success factors•Core Business•Core Competencies•Intellectual Capital

Own Company Best Competitor

Fast Food Bocatta Mc Donald’sFast Food Bocatta Mc Donald’s

Application Logic Control SAPSoftware

Application Logic Control SAPSoftware

Steel Aceralia NucorTechnology

Steel Aceralia NucorTechnology

Package delivery SEUR FederalServices Espress

Package delivery SEUR FederalServices Espress

Casual Wear Cortefiel ZARARetailing

Casual Wear Cortefiel ZARARetailing


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COMPANY A COMPANY B

(h) =

The OICBS FrameworkThe OICBS Framework Customer

B.U.Objectives

Operationsinfraestructure

Professional core competencies

(h)

Processes(h)

Core Competencies

Processes

Products and services (h)

Productsand services

Benchmarking

GAP

Benchmarking

GAP

Benchmarking

GAP

Benchmarking

GAP

Benchmarking

GAP

Benchmarking

GAP

needs

homologous

B.U.Objectives (h)

Core Competencies

Professional core competencies (h)

OperationsInfraestructure

(h)

B.U.= Business Unit


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Financial Results

Competitive Segment

environment

Corecompetenci

es

Professional core

ccompetencies

Customerneeds

Products Products

and servicesand services

Competitive advantages core business activitiesCompetitive advantages outsourcing activitiesCompetitive advantages alliance activities

Business Unit CompetenciesBusiness Unit Competencies

B.U.

B.U.= Business Unit


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BU1.....................BU2......................BU3......................BU n

OPERATIONS INFRASTRUCTUREa) Knowledge Managementb) Information and telecomunications technology c) Company cultured) Information systemse) Organizational structuref) Human capital managementg) Lidership

OPERATIONS INFRASTRUCTUREa) Knowledge Managementb) Information and telecomunications technology c) Company cultured) Information systemse) Organizational structuref) Human capital managementg) Lidership

Company operations infrastructureCompany operations infrastructure

OIC1....................OIC2....................OIC3.....................OIC n

Company OperationsCompany Operations

B.U.= Business UnitOIC=Operations Intellectual Capital


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The eight factors frameworkThe eight factors framework

Customer needs

Customer needs

Business Unit Objetives

Business Unit Objetives



Company corecompetencies

Company corecompetencies



Company operations

infrastructure

Company operations

infrastructure

5 4

3

2

6

Financialresults

Financialresults

7

1

ProcessesProcesses

8

FACTORS


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• Customer needs. Customer segment needs that the company expects to cover through the business unit activities.

• Business Unit Objectives: Business Unit activities lead to products and services through the corresponding processes using company and professional core capabilities and company operations infrastructure. The ultimate objectives of the business unit are the expected financial results through the satisfaction of customer needs.

• Products and services: Products and services with their attributes, characteristics, functions and embedded knowledge and technologies.

• Processes: Operations value chain activities that produce current products and services. These activities are made up of core business activities, outsourcing activities and strategic alliances and cooperation agreement activities. Competitive advantages will be generated mainly in the different value chain core business activities. Core competencies are mainly embodied in the core business activities of the value chain.

• Company core competencies: Essential knowledge or core competencies that make it possible and will give way to competitive advantages, unique processes and competitive products and services within the business unit.


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• Professional competencies: Professionals, managers and support staff competencies and capabilities that will generate and perfect core competencies.

• Company operations infrastructure: operations infrastructure (mainly intangible assets) that the company has and that is for the use of the different business units. The company operations infrastructure covers the following issues:

•a) Knowledge management.

•b) Information and telecommunications technology .

•c) Company culture.

•d) Information systems.

•e) Organizational structure.

•f) Human capital management.

•g) Leadership.

• Financial results: Expected economic and financial results from the business unit.


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Specific OICBS frameworkSpecific OICBS framework

1OICBS

framework2

34

5

6

7 8

Factors

Criteria

Criteria 1

Criteria 2

Criteria 3..........

Ccmpetence 1Competence 2Competence 3..........

Human Capital 2Structural Capital 2Relational Capital 3..........

Questionnaires


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From general framework to specific frameworkFrom general framework to specific framework

General Context Specific Context

The general framework

8 factorsxx Criteria

xxx Questionnaires

The 8 Factors Framework

Competitive Benchmarking

Benchmarking

BestCompetitorsValue Chain

Our companyValue Chain

Specific framework

8 factorsa, b,... Criteria

m,n, p... Questionnaires

Specific competitivenessfactors and criteria which

are relevant in a givenBusiness unit activity

Core CompetenciesBenchmarking

Our company

Best internationalcompetitors

Core competenciesevaluation

Key competitivenessdrivers


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C O G E N S . L . K N I T W E A R

G U I T A R E

C O N S O L I D A T E D R E S U L T S

P R O D U C T S

P R O C E S S E S

C O R E C O M P E T E N C I E S

P R O F E S S I O N A L C O R E C O M P E T E N C I E S

O P E R A T I O N S I N F R A S T R U C T U R E

F I N A N C I A L R E S U L T S

- 5 - 4 - 2 - 1 0 1 3

K S F K E Y S U C E S S F A C T O R S

D E S I G N / P R I C E

Q U A L I T Y / P R I C E

S A L E S N E T W O R K

C U S T O M E R S E R V I C E

- 5 - 4 - 2 - 1 0 1 3

C O M P E T I T I V E E N V I R O N M E N T E V A L U A T I O N

- 5 - 4 - 2 - 1 0 1 3

D i s a d v a n t a g e o u s A d a v a n t a g e o u s

2 4 5- 3

- 3 2 4 5

5- 3 2 4

C o n s o l i d a t e dR e l i a b i l i t y

I n d e x

C O M P E T I T O R

37%


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COGEN S.L. B.U.1 KNIT WEAR

GUITARE

ASSETS LIABILITIES

1.- PRODUCTS/SERVICES 1,0 1.- PRODUCTS/SEVICES 1.2 Price/Quality relationship 2,0 1.1 Design -1,01,3 Embodied services 1,7 1,5 Fabric quality -0,71,4 Conformance 0,7

2.-PROCESSES 2.- PROCESSES -2,02,1 Design 1,0 2,3 Dyeing thread -2,12,2 Prototipes and models 1,3 2,4 Finishing -3,12,8 Suppliers 2,0 2,5 Dress making -0,52,13 Alter sale service 1,2 2,6 Ironing -0,5

2,7 Packaging and labeling -1,02,9 Selling system -2,02,10 Order entry system -1,52,11 ERP -3,02,12 ISO 9000 -3,0

3.- CORE COMPETENCIES 3.- CORE COMPETENCIES -1,03.1 Suppliers value chain 2,1 3.3 Fashion creativity -2,03,2 Computer aid design 1,2 3.4 Knitwear design -2,0

3.5 CAM computer aid manufacturing -3,03,6 Market research -3,0

4.- OPERATIONS INFRASTRUCTURE 4.- OPERATIONS INFRASTRUCTURE -3,04,3 Company culture 1,0 4.1 Knowledge management 2,04,6 Lidership 1,5 4,2 Information and telecommunications technology4,0

4,4 Information systems 4,24.5 Human capital management 3,2

Aor

OPERATIONS INTELLECTUAL CAPITAL BALANCE SHEETOICBS

ConsolidatedReliability

Index

37%


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COGEN S.L. B.U.1 KNIT WEAR

GUITARE

ASSETS LIABILITIES

1.- PRODUCTS/SERVICES 1,0 1.- PRODUCTS/SEVICES 1.2 Price/Quality relationship 2,0 1.1 Design -1,01,3 Embodied services 1,7 1,5 Fabric quality -0,71,4 Conformance 0,7

2.-PROCESSES 2.- PROCESSES -2,02,1 Design 1,0 2,3 Dyeing thread -2,12,2 Prototipes and models 1,3 2,4 Finishing -3,12,8 Suppliers 2,0 2,5 Dress making -0,52,13 Alter sale service 1,2 2,6 Ironing -0,5

2,7 Packaging and labeling -1,02,9 Selling system -2,02,10 Order entry system -1,52,11 ERP -3,02,12 ISO 9000 -3,0

3.- CORE COMPETENCIES 3.- CORE COMPETENCIES -1,03.1 Suppliers value chain 2,1 3.3 FASHION CREATIVITY -2,03,2 Computer aid design 1,2 3.4 Knitwear design -2,0

3.5 CAM computer aid manufacturing -3,03,6 Market research -3,0

4.- OPERATIONS INFRASTRUCTURE 4.- OPERATIONS INFRASTRUCTURE -3,04,3 Company culture 1,0 4.1 Knowledge management 2,04,6 Lidership 1,5 4,2 Information and telecommunications technology4,0

4,4 Information systems 4,24.5 Human capital management 3,2

Aor

OPERATIONS INTELLECTUAL CAPITAL BALANCE SHEETOICBS

ConsolidatedReliability

Index

37%

3,3 Fashion Creativity- Knowledge on fabrics- Knowledge on printing and dyeing- Knowledge on design- Knowledge on prototipes and models - Knowledge on manufacturing-Knowledge on fashion trends- Knowledge on exhibitions- Knowledge on best designers

-2,0-0,5-1,0-2,0-0,5-1,0-3,0-3,0-3,0


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• Learning from one' s betters to surpass one's own competitive position.

• Identifying the specific competitiveness factors and criteria which are relevant in a given business activity.

• Through the competitiveness factors framework, enabling the identification, audit and benchmark of the core competencies or key intellectual capital that are the main sources of sustainable competitive advantages.

• When using OICBS in an orderly systematic and repetitive way we obtain operations competencies statements and Balance Sheets, that complement and perfect finance balance sheets and lead companies to leveraging intellectual capital.

Benefits from using OICBS IBenefits from using OICBS I


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Benefits from using OICBS IIBenefits from using OICBS II

• Selecting in a systematical and organised way the necessary information for evaluating relevant factors, core competencies or key intellectual capital. • Identifying the key areas in which in-depth benchmarking can be carried out in the future.

• Promoting organisational learning through benchmarking teams, assessment teams, communities of practice and strategic teams.

• Introducing a common language for company managers when dealing with intangible and intellectual assets.


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Benefits from using OICBS IIIBenefits from using OICBS III

• Measuring the reliability concerning the relevant information and the progress of acquiring this information.

• Facilitating the work of the benchmarking and competitive intelligence teams.

• Facilitating the work of the knowledge and intellectual capital managers.

• Giving to the SME’s managers access to core competencies and intellectual capital management in a systematic and organised way.

© josé m. viedma marti, 2001. i c the 3th world congress on intellectual capital josé maría...

Documents

c slide

intellectual capital

c tangible resources

capabilities resources

c benettons store slide

c zaras store slide

values resources

c strategy formulation