The accounting as an instrument of information must offer information to different users of exact information. Intellectual capital is defined as a group of knowledge assets that are owned and controlled by an organization that create value. It is based on the assumption that intellectual capital does not produce any value. Skandia navigator, intangible assets, intellectual property, intangibles measurement, performance indicators. The architecture of the skandia navigator is simple yet very sophisticated. Intellectual capital is the intangible value of a business, covering its people human capital, the value relating to its relationships relational capital, and everything that is left when the employees go home structural capital, of which intellectual property ip is but one component. National intellectual capital as an economic driver 200408 final. He was the first corporate director of intellectual. In 1994, the skandia group was one of the first companies noted for their work with their intellectual capital. They were, for example, the customer database, the concessions, the it systems, etc. The information concerning the accounting for the intellectual capital of the enterprise, not only that they can be useful for the inside public, but also to the outside one, as well as contributing to the creation of value within the organization by showing to what. An innovative model for measuring intellectual capital. Skandia navigator leif edvinsson definition finance.
Intellectual capital financial capital human capital structural capital customer capital organisational capital culture process capital intellectual capital as disaggregation of the market value innovation capital intellectual properties intangible goods source. It is mainly based on interviews with business controllers at skandia afs and on written material produced by the skandia group. Performing organization names and addresses naval postgraduate school monterey, ca 939435000 8. Skandia navigator is among the most cited models in the field of intellectual capital. The purpose of this research paper is to analyze the skandia navigator ability in measuring intangible assets and company performance and its implementation and adoption possibilities by albanian companies. Defining key performance indicators for organizational knowledge assets article pdf available in business process management journal 105. Intellectual capital measurement and reporting models. The intellectual capital mission at skandia afs holders such as customers. Appendix 1 indicators of skandia navigator model indicators of skandia navigator model, sourced from leif edvinsson and michael s. Ic much extended a practitionercreated concept and enjoyed a very rapid popularity in the 1990s. Developing intellectual capital at skandia capital intelectual. The architecture of the sn is simple yet very sophisticated. Through the enthusiasm and guidance of its onetime director of intellectual capital, leif edvinsson, the company has developed a business value model, its own ic tool, the skandia navigator, and has developed and experimented with other ic tools and methods.
Intellectual capital the commitment and competence of workers is embedded in how each employee thinks about and does work and in how an organization creates policies and systems to get work done. Successful companies rely on traditional factors of production for their survival. Competitiveness analyses and other studies related to the establishment of national or regional indicators. The various components of intangible assets or intellectual capital are identified and indicators and indices are generated and reported in scorecards or as graphs.
Another way of measurement of intellectual capital belonging to synthetic methods is knowledge capital earnings kce. Most of the first group uses the skandia navigator model as a starting point. Model, measuring, intellectual capital, human capital, customer capital. National intellectual capital as an economic driver perspectives on identification and measurement pirjo stahle pirjo. Intellectual capital reporting advantages, disadvantages. Developing intellectual capital at skandia sciencedirect. Only owing to its implementation, productivity of material and financial resources grows.
An innovative model for measuring intellectual capital core. This article describes skandias approach to measuring intellectual capital. As the structural capital, to a large extent, is invisible in traditional accounting, the important developing intellectual capital at skandia question of value extraction does not gain the same immediate attention, navigation and the skandia navigator the metaphor of navigation constitutes a search for another language of dynamic reporting. Pdf developing intellectual capital at skandia leif edvinsson. Skandia navigator is a pioneer work in this field, and had much effect on managing and reporting intellectual capital from then on.
The navigator comprises a holistic view of performance and goal achievement. Nov 20, 2014 one of these models, which attempt to measure company performance and intangible asset value, is skandia navigator. Measuring intellectual capital became a main research area in the 1990s. Download pdf electronic journal of knowledge management. The contribution of skandia navigator in intangibles. Why is intellectual capital so difficult to measure. This article describes skandia s approach to measuring intellectual capital. Pdf developing intellectual capital at skandia leif. Skandia a sample from the skandia afs case study the full. Pdf intellectual capital measurement and reporting models. Skandia navigator edvin sson and malone, 1997, the icindex roos et al. Those specifically intended to measure and manage the intellectual capital of nations or regions. Introduction over the past several years there have been intensive discussions about the importance of intellectual capital within our society.
Intellectual capital realizing your companys true value by finding its hidden roots, 1997, harpercollins publishers customer focus market share number of customers annual salescustomer. Skandias navigator reporting system is the product of work into valuing the knowledge capital of skandia that originally commenced in 1991 roy, 1999. The intellectual capital is promoted as an important and necessary factor for organizational. To do so, they defined intellectual capital as difference of. A report on skandias intellectual capital was presented for the first time in connection with the 1994 annual report, based on the skandia navigator management and reporting model. The skandia navigator is a collection of intangibles measurements methods, pioneered by leif edvinsson at skandia.
Yet the most important and sustainable sources of competitive advantageknowledge, customer relations, supplyondemand, micromanagement, and other forms of intellectual capitaloften dont even appear on many companies reporting systems. Balanced scorecard, skandia navigator and intangible assets. First, intellectual capital is a firms only appreciable asset. Five focus areas or perspectives capture different areas of interest.
It was developed by leif edvinsson at skandia a swedish financial company. The model is called skandia navigator and is the one of worlds first proposal of the. The objective of this reporting model is to provide a balanced, overall management perspective of the companys financial as well as its intellectual capital. A noteworthy group among the national intellectual capital conceptual approaches, allowing to an assessment of the nic level, are methods based on a model developed by l. Most papers on skandia navigator are no more than introduction of skandias intellectual capital management, and papers which examine the significance of skandia. In this context, by proposing a new intellectual capital measurement and reporting system, leif edvinsson and michael s. It measures currently unmeasured intangible assets. Skandia insurance services 1997 intellectual capital human capital and structural capital sveiby 1997 immaterial values internal structure, external structure and personnel competence. For every year, the organization adds something beyond the. Skandia navigator is used to measure the intangible assets mainly the intellectual capital and knowledge assets of a company. The skandia navigator sn is a collection of critical measurements that all comprise a holistic view of performance and goal achievement.
According to this model, skandia divides market value into financial capital and intellectual capital. Leif edvinsson model structure of intellectual capital at skandia source. As neither human capital nor structural capital are represented in traditional accounting systems, skandia developed their own method for capturing the true value potential of the organization with the help of two models, the skandia value scheme and the skandia navigator. In skandia, the present reporting development uses the navigator more and more. The measurement is done on the basis of five focus areas. So what was learned from this was that out of human capital grows developing intellectual capital at skandia. Skandia navigator is classified as a non monetary model and was first developed by the author leif edvinsson in 1998, while he was corporate director of intellectual capital in a swedish financial services company called skandia.