Making the Business Case for Managing Intellectual Capital

This chapter talks about intellectual capital (IC) and its importance to managers in the form of valuing intangible assets. It clarifies why increasing and managing intellectual capital is essential for the long‐term prosperity of knowledge organizations. It also helps to understand why knowledge management (KM) is first and foremost about managing and increasing intellectual capital, and how it serves as the basis for all KM tools. The chapter helps to build the business case for investing our time and money into the proper knowledge management systems. The lessons of the bubble economies are discussed in more detail. The value of IC without using market value (MV) are also addresses. Finally the chapter concludes the first and introductory phase of the KM journey, describing the motivation for using KM to increase IC.