© josé m. viedma marti, 2002. i c the 5th world congress on intellectual capital josep m. viedma...

© José M. Viedma Marti, 2002.

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The 5th World Congress on Intellectual CapitalThe 5th World Congress on Intellectual Capital

Josep M. ViedmaProfessor of Business Administration at the Polytechnic University of Catalonia

and President of Intellectual Capital Management Systems

SCBS Social Capital Benchmarking SCBS Social Capital Benchmarking SystemSystemProfiting from Social Capital when building network Profiting from Social Capital when building network

organisationsorganisations


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IntroductionIntroductionSCBSSCBS

Present models of IC focused on the value chain internal IC.

They do not take into account Social Capital (SC) when building and managing networked organisations that intend to achieve sustainable competitive advantages.

This paper is trying to fill up this gap by developing SCBS.

SCBS is a new management method and tool that identifies, audits and benchmarks the SC existing in alternative cluster locations, that is necessary in order to develop the specific network organisation that each particular business model requires.

IC= Intellectual Capital

SC= Social Capital


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Industrial Complex at Castrette (Benetton)


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Benetton’s Store


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Benetton

BENETTON

“Outsourcing”

Backward

350External

Contractors

Manufacturing

6.000 storesworldwide

Outlets

70Agents

Distribution

Forward


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Firm resources and capabilities

SustainableCompetitiveadvantage

Strategy

Best in class“competitors”

core competencies

Core competencies =core capabilities =intellectual capital

Resources

Intangible

Organizational Human Relationships- Technology - Knowledge - Customer- Knowledge - Skills - Suppliers- Reputation - Motivation - Stakeholders- Culture - Communication - Competitors

abilities - Other partners

Tangible

- Financial

- Physical


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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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Tangible Intangible

Organizational Human

IntelligentEnterprise

Strategy

Core competencies

Resources

Other companiesorganizations and

institutions

Suppliers1 … n

Organizations1 … n

Institutions1 … n

Corecapabilities

Corecapabilities

Corecapabilities

Resources Resources Resources

Relationships

Intelligent Enterprise network


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Tangible Intangible

Organizational Human


Strategy

Core competencies

Resources

Other companiesorganizations and

institutions

Suppliersq … z

Organizationsq … z

Institutionsq … z

Corecapabilities

Corecapabilities

Corecapabilities


Relationships

Suppliers1 … q

Organizations1 … q

Institutions1 … q

Corecapabilities

Corecapabilities

Corecapabilities


Inside the cluster Outside the cluster

Network structure. Inside and outside the cluster.


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TA

NG

IBLE

RES

OU

RC

ES

Process A

Company 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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Company Value Creation Tree

TA

NG

IBLE

RES

OU

RC

ES

Process A

Process B

Process C

Service A

Service B

Service C

COMPETENCIESCAPABILITIES

KNOWLEDGEKNOWLEDGEKNOWLEDGEKNOWLEDGEKNOWLEDGE

HUMANCAPITAL

INTANGIBLE RESOURCES

STRUCTURALCAPITAL

RELATIONALCAPITAL

INTELLECTUALCAPITAL

PRESENT(Value Extraction)

Process A

Process A

Service A’

Service A”

Process B

Process B

Service B’Service B”

Process C

Process C

Service C’

Service C”

FUTURE(Innovation)

NEWCOMPETENCIES

NEWCAPABILITIES

KNOWLEDGE NEWKNOWLEDGE

NEWKNOWLEDGE

NEWKNOWLEDGE

HUMANCAPITAL

NEW INTANGIBLE RESOURCES

STRUCTURALCAPITAL

RELATIONALCAPITAL

NEW INTELLECTUALCAPITAL

New Process

New Product M

New Process

New Process

New Product M’

New Product M”

TA

NG

IBLE

RES

OU

RC

ES

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© Intellectual Capital Management Systems


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Mataro

Marruecos

Venecia

Turquía

Optional locations knitwear industry segment


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NEWCOMPETENCIES

NEWCAPABILITIES


NEWKNOWLEDGE

NEWKNOWLEDGE

HUMANCAPITAL


STRUCTURALCAPITAL

RELATIONALCAPITAL


New Process

New Product M

New Process

New Process

New Product M’

New Product M”

TA

NG

IBLE

RE

SO

UR

CE

S

NEWCOMPETENCIES

NEWCAPABILITIES


NEWKNOWLEDGE

NEWKNOWLEDGE

HUMANCAPITAL


STRUCTURALCAPITAL

RELATIONALCAPITAL


New Process

New Product M

New Process

New Process

New Product M’

New Product M”

TA

NG

IBLE

RE

SO

UR

CE

S

ICBSIntellectual Capital

Benchmarking System

ICBSInnovation CapabilitiesBenchmarking System

SCBSSocial Capital

Benchmarking System

Intellectual Capital Management System Metodologies


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Strategy

Core competencies

Industry segment

Network

Cluster A Cluster B Cluster C Cluster … n

based on

Profiting from existing social capital when building network organisations: the need to benchmark.


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COMPANY AIndustry Segment

Posible Networklocation alternatives

Cluster A Cluster B

a) Resources and capabilities

b) Demand

c) Suppliers and other

related industries

d) Firms strategy, culture

and structure

e) Competitors

f)Goverment

a) Resources and capabilities (h)

b) Demand (h)

c) Suppliers and other

related industries (h)

d) Firms strategy, culture

and structure (h)

e) Competitors (h)

f)Goverment (h)

Benchmarking

Gap

BenchmarkingGap

Benchmarking

GapBenchmarking

Gap

Benchmarking

Gap

Benchmarking

GapBenchmarking

Gap

Where Company A is located or is trying to locate

Where the best competitor in the industry segment is located

h=homologous

Building the SCBS general framework


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A) Resources and capabilities

B)Demand

C) Suppliers and other related industries

D) Firms strategy culture and structure

E) Competitors

F) Government

Building the SCBS general framework


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1

SCBSframework

2

3

4

5

6

Factors Criteria Questionnaires

Criterion 1

Criterion 2

Criterion 3..........

Questionnaire 1

Questionnaire 2

Questionnaire 3..........

From the general to the specific SCBS framework.


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From the general framework to specific framework .

General Context Specific Context

General framework

6 factorsxx Criteria

xxx Questionnaires

The 6 Factors Framework

Clusters Benchmarking

Benchmarking

BestCompetitors

cluster

Our companyCluster

Specific framework

6 factorsa, b,... Criteria

m,n, p... Questionnaires

Specific clustercompetitiveness

factors and criteria which are relevant in a given industry segment.

Social CapitalBenchmarking

Our companyCluster

Best competitorcluster

Social CapitalKey competitivenessdrivers


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CLUSTER A : Mataró CLUSTER B : Treviso

Cluster A points - Cluster B points Cluster B points - Cluster A points

Assets LiabilitiesA) RESOURCES AND CAPABILITIES 0,33 A) RESOURCES AND CAPABILITIES

Capital 0,65 CapitalSkilled personnel 1,16 Skilled personnel

Educational and research centers 1,10 Educational and research centers Science and technology 0,82 Science and technology

Conventional energy 0,07 Conventional energyTransportation infrastructure 0,14 Transportation infrastructure

Infrastructure to live 0,50 Infrastructure to live B) DEMAND 0,80 B) DEMAND

Demand segmentation 0,70 Demand segmentationEnd user refinement 0,75 End user refinement

Pressure for innovation and upgrading 1,05 Pressure for innovation and up gradingDemand internationalisation 0,50 Demand internationalisation

C) SUPPLIERS&OTHER RELATED INDUSTRIES 0,75 C) SUPPLIERS&OTHER RELATED INDUSTRIES

Suppliers internationalization 1,50 Suppliers internationalizationSupport sectors 0,50 Support sectors

Related industries outsourcing 0,32 Related industries outsourcing Strategic networks 0,50 Strategic networks

D) FIRMS STRATEGY CULTURE&STRUCTURE 0,71 D) FIRMS STRATEGY CULTURE&STRUCTURE

Strategy objectives 0,50 Strategy objectivesCulture 0,31 Culture

Industry segment prestige 1,02 Industry segment prestigeFirms structure 0,02 Firms structure

Managers and workers 0,50 Managers and workersE) COMPETITORS 0,50 E) COMPETITORS

F1) GOVERNMENT (direct intervention) 0,34 F1) GOVERNMENT (direct intervention)

F2) GOVERNMENT (indirect intervention) 0,35 F2) GOVERNMENT (indirect intervention)

Influence on resources and capabilities 0,02 Influence on resources and capabilitiesInfluence on demand 0,50 Influence on demand

Political factors 0,50 Political factorsLabour law 0,05 Labour law

Tax and commercial law 0,50 Tax and commercial law

Industry segment: Knitwear clothing industry

The SCBS balance sheets.


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CLUSTER A : Mataró CLUSTER B:

RESOURCES AND QUESTIONNAIRES

CAPABILITIES WEIGHTING RESULTS

0 - 5 % Cluster A Cluster B

Natural resources 0 0,0% 0,00 0,00

Industrial real estate 3 7,9% 3,50 3,50

Climate 0 0,0% 0,00 0,00

Unskilled personnel 0 0,0% 0,00 0,00

Capital 3 7,9% 3,00 3,65

Skilled personnel 5 13,2% 3,19 4,35

Educational and research centers 4 10,5% 3,10 4,20

Alternative energy 0 0,0% 0,00 0,00

Telecommunications 5 13,2% 3,27 3,27

Science and technology 4 10,5% 3,23 4,05

Conventional energy 5 13,2% 3,00 2,93

Transportation infrastructure 5 13,2% 3,86 4,00

Infrastructure to live 4 10,5% 3,50 4,00

Related resources provision 0 0,0% 0,00 0,00

38

Resources and capabilities weighted

average ( 0 - 5 )

Cluster A Cluster B

2,19 2,52

Consolidated reliability index >80%

Treviso

Industry segment: Knitwear clothing industry

The SCBS balance sheets.


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Identifying the world best cluster locations, where the intelligent enterprise is able to establish the necessary relationships, that each specific business model requires in order to build its network organisation.

Identifying the specific external social capital factors and criteria which are relevant in a given business model or industry segment.

Trough the SCBS factors framework enabling the identification, audit and benchmark of the social capital alternative cluster locations that are the source of sustainable relational competitive advantages.

When using SCBS in an orderly, systematic and repetitive way, we obtain social capital balance sheets that are future-oriented and complement and perfect finance and intellectual capital balance sheets, leading companies to leveraging social capital.

Benefits from using SCBS - I


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Selecting in a systematic and organised way the necessary information for evaluating relevant social capital factors and criteria.

Identifying the key areas in which in-depth benchmarking can be carried out in the future.

Promoting organisational learning through benchmarking teams, assessment teams, project teams and strategic teams.

Introducing a common language for company managers when dealing with social capital or external resources and capabilities.

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

Benefits from using SCBS - II


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Facilitating the work of the benchmarking and competitive intelligence teams.

Facilitating the work of the knowledge and intellectual capital managers.

Giving SME’s managers access to social capital management in a systematic and organised way.

Benefits from using SCBS - III

Thanks for listening

© josé m. viedma marti, 2002. i c the 5th world congress on intellectual capital josep m. viedma...

Documents

viedma marti

core competence

social capital slide

c firm resources

q institutions

q organizations

suppliers network

physical slide