Jun 182009

Speaker: Dr Kin H Chan [B. Eng (Hons), DIS, MSc, MBA, DBA, MIAP]

In a knowledge based economy, a great deal of emphasis is placed on intellectual capital (IC) as the intangible value driver for an organisation. IC is even said to be pivotal in the prosperity of a national economy. Using the so-called IC framework or perspective, investors and managers may be in a better position to see how well a company is doing in creating values and, therefore, generating wealth for all the stakeholders. What does the current financial turmoil tell us about the value created by the companies and their stock prices?

Measuring the intangibles may be likened to ‘measuring the unmeasurable’. However, there has been much advancement in both quantitative and qualitative techniques for IC measurement. Value Added Intellectual Coefficient (VAIC) is a financially based methodology pioneered by Ante Pulic’s (2000), which has been applied in the stock markets of many European countries as well as in Asia including Taiwan, Singapore, Japan, and India.

What does VAIC say about the IC usage of companies in the Hang Seng Index? Whatare the value drivers of the Hang Seng index? These are the questions that the presentation will seek to address.

Pulic, A. (2000) VAIC — An accounting tool for IC management, International Journal of Technology Management, 20, 5-8, pp. 702-714.

Kin Chan is currently the Corporate VP and Managing Director, Greater China, of DTS Inc, a US entertainment technology company which specialises in Surround Sound for the movie, music and games industries. DTS licenses its IPs to major costumer electronics companies worldwide. Kin developed his interests in IC during his doctoral studies.

Dec 182008

Speaker: Prof. Dr Ante Pulic, University of Zagreb, Croatia, EU

At first sight, it might seem that the current financial crisis has no connection to intellectual capital, but in fact there is a strong relationship between the two. Troops of people take care of financial capital and the result of their activities is monitoring the flows of this resource and its effectiveness. At the same time, intellectual capital has no such treatment.

Monitoring of value creation efficiency of that resource does not really exist. What is done resembles to what was done with manual work before Taylor. In business reality, this is featured by the fact that many firms achieve revenue and profit but, at the same time, a fall of value creation efficiency is happening. It is similar to a landing plane: while still flying, height is gradually decreasing. Although this situation is normal for planes, it is fatal for companies. Bankruptcy is the last stage of that downwards flight and it happens easily when intellectual capital performance is ignored. One of the ways to fight the crisis, that has not
reached its peak yet, is raising the efficiency of intellectual capital. Increasing value creation efficiency of intellectual capital by better utilisation of existing intellectual resources is the cheapest way of fighting financial crisis.

  • Intellectual Capital Efficiency has no Limits
  • Rules to prevent or overcome financial crisis
  • Value Creators are the Presupposition of Success
  • Continuous Increase of Value Added
  • Efficiency in Value Creation
  • Control of Value Added and Efficiency
  • Continuous Elimination of Value Destruction
  • Efficiency Remuneration