5.Recognizing a Firm's Intellectual Assets

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Manjemen Stratejik

5. Topik Mengenal kekayaan intelektusl perusahaan (Recognizing A Firm’s Intellectual Assets )

a. Peran Pengetahuan dalam Ekonomi saat ini (The Central Role of Knowledge in today’s Economy) b. Sumber daya Manusia sebagai fondasi Kekayaan intelektual (Human Capital: The Fondation of Intellectual Capital)

c. Pentingnya Peranan Modal Sosial (The Vital Role Of Social Capital)d. Penggunaan Teknologi dalam meningkatkan kemampuan SDM dan Pengetahuan

(Using Technology to leverage Human Capital and Knowledge Protecting)e. Kekayaah Intellektual Organisasi (The Organization Intellectual Property)

f. Kapabilitas Dinamis (The Dynamic Capabilities)g. Peranan SDM berkualitas dalam merumuskan Strategi

(The Central Role of Leveraging Human Capital in Strategy Formulation)

Universitas Indonesia

Fakultas Ilmu Sosial dan Ilmu Politik

Program Pasca Sarjana Komunikasi

Instruktur :Henry Faizal NoorEmail : [email protected]

Oktober 2010


Resources: Semua sumberdaya yang dapat digunakan untuk mencapai tujuan

1. Tidak semua resources ini berada dalam kendali manejemen

2. Tidak semua resources ini terlihat pada Neraca Perusahaan3. Pada umumnya tidak semua tergambar secara akuntansi

Peluang Pasar,

Teknologi,

prasarana,

keuangan, network ,

dsb)

Yang Kelihatan(Tangible)

Yang tidak Kelihatan

(Intangible)

What constitutes a "resource"? A firm resources include all assets, capabilities, organizational processes, firm attributes, information, knowledge, etc; controlled by a firm that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness

Assets: Whichare tradable and non-specific to

the firm

Assets which firm-specific and can be used to improve

firm competence


Capabilities Kemampuan yang dimiliki perusahaan dalam memanfaatkan sumber daya (Resources) guna mencapai tujuan

Competencies are particular strengths relative to other organizations in the industry which provide the fundamental basis for the provision of added value. Core competencies are the collective learning in organizations, and involve how to coordinate diverse production skills and integrate multiple streams of technologies. It is communication, an involvement and a deep commitment to working across organizational boundaries.

A core competency is a specific factor that a business sees as being central to the way it, or its employees work. It fulfils three (3) key criteria:a.It provides consumer benefitsb.It is not easy for competitors to imitatec.It can be leveraged widely to many products and markets.

Competitive advantage: Keunggulan dalam bersaing

Strategic Competitiveness : Strategi yang menghasilkan keunggulan dalam bersaing secara berkesinambungan (Sustainable)

Body, Head and Heart

Level One activity, directly observable, can be likened to the body.1.Most managerial systems since the beginning of the Industrial Revolution have focused on Level One: on influencing observable behavior alone2.In the Information Age this approach has become obsolete.

Level Two activity, one’s conscious thoughts, can be likened to the mind.

Level Three activity, VABE (Value, Assumption, Belief, Expectation) can be likened to the heart.Highly culture- and family-specificAn effort required to become fully aware of one’s own VABEs

All three levels of activity influence one another.

An Effective Performance

Model.

Individual Atributes

(be)Competencies

(know)

Outcomes(do)

Performer Outcome refers to the degree that the person has successfully performed his or her duties. It is measured by standard external criteria.


1. General Cognitive Ability :It can be thought of as intelligence, which is

linked to biology, rather than experience

2. Crystallized Cognitive Ability : Is the intellectual ability that is learned

or acquired over time. It is composed of the ideas and mental abilities

that we learn through experience.

3. Motivation : Is the performer's willingness to tackle problems, exert

their influence, and advance the overall human good and value of the

organization.

4. Personality -- These are any characteristics that help the performers to

cope with complex organizational situations.

The Individual Attributes are composed of four (4) attributes:


1.Problem-Solving Skills : are the performers' creative abilities to solve unusual and

normally ill-defined organizational problems.

2.Social Judgement Skills -: Is the capacity to understand people and social systems.

3.Knowledge : is the accumulation of information and the mental structures used to

organize that information (schema).

4.Professional Skills and Knowledge : are the knowledge and skills that are critical for

producing key outputs.

Competencies are the heart of the model. There are four (4) major catagories:

The Information age EconomyCirinya: 1. Commerce travels on the electronic highway 2.Wealth is the product of knowledge assets, more than of natural resources 3. Dampaknya : Berkurangnya kontrol dari pemerintah The end of the nation state Masyarakat ekonomi global Makin derasnya persaingan Tuntutan equal treatment dari modal asing Membuka peluang dan tantangan baru bagi dunia bisnis

1. Good is no longer “good enough”

2. Just satisfying your customer is nothing special

3. To be “the best” promises maximum rewards

4. The nature of doing business is radically changing

5. Past operational & management practices may not be effective

a. Management has to think like a fighter Pilot.

b. You can not always make the right decisionc. You have to learn to adjust

To days Business Jargon

a. How to adjust to the new environmentb. Environment always changing c. How to keep your competitiveness

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-- Seth GodinFast Company, August 2000The third 100 years are about ideas.”

The second 100 years were about the race to build efficient factories.

“The first 100 years of our country’s (USA) history were about who

could build the biggest , most efficient farm.

The Evolving USA Economy

Source: Collaborative Economics

New Growth Theory: A Paul Romer Perspective

Ingredients

> Intellectual capital

> Human capital

> Financial capital

Recipes

• New ideas

• Entrepreneurs

• Networks

Results

• Productivity

• Prosperity

• Vitality

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Sumber Daya Alam sampai 1700 M

Perkembangan Bisnis dan Industri

Innovasi>1950 M

Tenaga Kerja1700- 1950 M

Negara atau daerah yang

kaya denga SDA

Industrinya lebih maju

dibanding dengan yang

tidak memiliki SDA

Energi Batu Bara

Tambang

Hutan, dsb

Negara atau daerah yang

produktivitas Tenaga

Kerjanya lebih tinggi,

Industrinya lebih maju

dibanding dengan negara

yang Produktivitas Tenaga

Kerjanya rendah

Sistem Pendidikan

Skill, Pelatihan

Negara atau daerah yang innovasinya

tinggi Industrinya lebih maju dibanding

dengan negara yang innovasinya rendah

Budaya, nilai nilai

Leadership

Pengembangan IPTEK

Local Economic& National Economic

National Economic& Int’ál Economic

Global Economic and Knowledge Economy

1st and 2 ndIndustrial Revolution

3rdIndustrial Revolution

Todays Economy and The Role of KnowledgeTodays Economy and The Role of Knowledge

04/10/23


Perubahan Fundamental yang terjadi di abad ke 21

Split off Production and Market(Globalization of Production and Market)

Technology and Environment Are Changing rapidly

Declining of Birth rate

Global Economy Without Global Government

The world is Flat

The higher Risk of exploring

A new and unknown environment

Global economy, global competitionGlobal economy, global competition

There is so much change in the businessThere is so much change in the businessNetworks that bind companies and countries

Networks that bind companies and countries

“e” business, “e” commerce “e” business, “e” commerce

Customers more demand best quality service and lowest priceCustomers more demand best quality service and lowest price

Continually Improvement essential but not enoughContinually Improvement essential but not enough Deliberate strategies for innovationDeliberate strategies for innovation

Knowledge is Power

With knowledge one's potential or abilities in life will certainly increase. Having and sharing knowledge is widely recognized as the basis for improving one's reputation and influence, thus power.

Justification for a reluctance to share information when a person believes that withholding knowledge can deliver to that person some form of advantage.

A wise man has great power, and a man of knowledge increases strength

if the world exists solely as the content of consciousness, then knowledge itself can be used to directly manipulate the content of reality.

The value of high-tech companies such as software & biotechnology companies, is not in physical assets as measuredby accountants, but in their intangibles such as knowledge and patents.


a.The economics is not of scarcity, but rather of abundance. Unlike most resources that deplete when used,

information and knowledge can be shared, and actually grow through application

b.The effect of location is diminished. Using appropriate technology and methods, virtual marketplaces and virtual

organizations can be created that offer benefits of speed and agility, of round the clock operation and of global reach

c. Laws, barriers and taxes are difficult to apply on solely a national basis. Knowledge and information ‘leak’ to

where demand is highest and the barriers are lowest.

d.Knowledge enhanced products or services can command price premiums over comparable products with low

embedded knowledge or knowledge intensity.

e.Pricing and value depends heavily on context. Thus the same information or knowledge can have vastly

different value to different people at different times

f.Knowledge when locked into systems or processes has higher inherent value than when it can ‘walk out of

the door’ in people’s heads.

g.Human capital - competencies - are a key component of value in a knowledge-based company, yet few

companies report competency levels in annual reports. In contrast, downsizing is often seen as a positive ‘cost

cutting’ measure.

Characteristics of Knowledge Economy

The knowledge economy differs from the traditional economy in several key respects:

These characteristics, so different from those of the physical economy, require new thinking and approaches by policy makers, senior executives and knowledge workers alike. To do so, though, requires leadership and risk taking, against the prevailing and slow changing attitudes and practices of existing institutions and business practice


a. Economic Development policy should focus not on 'jobs created' but rather on infrastructure for

sustainable knowledge enhancement' that acts as a magnet for knowledge-based companies Sophia

Antipolis in France is a hub for many knowledge-based businesses

Kebijakan yang relevan dengan mewujudkan Knowledge based Economics

g. Encourages the sharing of knowledge through effective Internet settings and business practices.

Steelcase designs 'smart' working environments and has developed a culture of knowledge sharing

f. Provides a technology infrastructure to enhance knowledge creation and sharing Hewlett-Packard’s uses an intranet for knowledge sharing throughout the company on a global basis..

e.Systematically enhances Stadia learning and knowledge, through new Stadiaments and processes. Price Waterhouse has created knowledge centers to improve the capture, codification and dissemination of 'best practice' knowledge.

d.Develops new measure of corporate performance based on knowledge: Skandia’s supplements

annual reports with intellectual capital reports using measures from the Skandia Navigator.

c. Stimulate market development through new forms of collaboration . Several EU programmes now focus on market development (rather than product development) and encourage participation by collaboration across national boundaries using Electronic Konwledge networking methods.

b. Develops regulation and taxation for information and knowledge, trading at international level,

looking to future knowledge-based industries rather than traditional industries.

WIPO is seeking harmonization of copyright legislation for online markets


Value of Knowledge and Innovation

Customer Value

Cost

Value Of

Knowledge

innovation



POPIS CONCEPTPOPIS CONCEPT

BusinessGrowth and Sustainability

SOCIOSOCIOCULTURALCULTURAL CAPITALCAPITAL

INTELECTUAL CAPITAL

POWERPOWER CAPITALCAPITAL

ORGANIZATIONAL CAPITAL

PHYSICAL CAPITALPHYSICAL CAPITALShareValue

Strategy

Staff

Style ofLeader-ship

StructureSystem

Skill


Merupakan modal fisik, atau materi yang yang diperlukan untuk pengembangan investasi atau usaha

Secara berkelanjutan ke masa depan. Secara makronasional. modal fisik atau materi ini terdiri dari

kekayaan alam, tersedianya dana atau anggaran negara untuk melakukan investasi publik guna memba-

ngun berbagai prasarana dan sarana termasuk penyediaan barang barang publik, maupun barang semi

publik seperti air minum, listrik , pemadam kebakaran, dan sebagainya. Physical Capital ini merupakan

modal dasar bagi pemerintah sebagai penyelenggara negara untuk meningkatkan kualitas, dan kuantitas

pelayanan bagi masyarakat, melalui investasi

publik

Secara mikro perusahaan,. modal fisik atau materi ini terdiri dari tersedianya dana,

untuk diinvestasikan menjadi faktor produksi, seperti mesin, tanah, bangunan, bahan baku

& penolong, untuk diolah, serta pasar yang bertumbuh pesat untuk dilayani.

Bagi perusahaan privat, modal fisik ini merupakan modal dasar untuk memulai dan

mengembangkan usahanya melalui investasi

Modal Fisik (Physical Capital)


Merupakan modal institusi guna pengorganisasian kegiatan, yang yang berkaitan dengan pengembangan

investasi kedepan. Pada intinya Organizational Capital meliputi kemampuan membentuk & menyusun

struktur, dan mengembangkan sistem organisasi yang tepat, sehingga effektif ,antisipatif dan produktif

dalam mencapai tujuan yang diinginkan.

Bagi pemerintah sebagai penyelenggara negara modal organisasi ini merupakan tersedianya institusi atau

lembaga negara yang mengelola, dan menjaga efisiensi serta effektifitas kesinambungan pelayanan kepada

masyarakat, melalui investasi publik . Dari sisi pemerintahan, Organizational Capital pada intinya adalah

kemampuan manajerial pemerintahan dalam mensinergikan semua potensi bangsa guna pengembangan

Investasi nasional.

Bagi Perusahaan, modal organisasi ini adalah berupa kemampuan perusahaan dalam

Menyusun struktur organisasi dan operasi yang solid serta handal dalam mengelola usaha

dengan efisien, produktif dan berdaya saing tinggi. Organization Capital ini merupakan

modal penting bagi perusahaan untuk memulai dan mengembangkan usahanya kedepan

melalui investasi

Modal Organisasi (Organizational capital)


Adalah kekuatan dan ketangguhan, yang dimiliki untuk mencapai tujuan yang diinginkan.

Power Capital, atau modal kekuatan dan ketangguhan ini dapat berupa salah satu atau gabungan dari unsur

berikut: Tangguh secara Legalitas atau secara hukum Tangguh secara modal atau pendanaan Tangguh secara teknologi Tangguh dalam penguasaan pasar (Market leader) Tangguh dalam penelitian dan pengembangan serta innovasi Tangguh secara moral, sehingga citranya atau imagenya sudah terbangun dimata stakeholder

Bagi pemerintah sebagai penyelenggara negara , power capital ini adalah legalitas kekuasaan berdasarkan peraturan

perundang undangan, untuk mengelola dan mengatur kekayaan Negara secara efisien, dan effektif guna memberikan pelayanan yang berkualitas dan berkelanjutan bagi masyarakat, Power Capital ini merupakan mandat atau kekuasaan yang diterima pemerintah, untuk mewujudkan pelayanan masyarakat dengan kualitas prima melalui berbagai investasipublik yang dilakukannya

Bagi perusahaan, Power Capital ini merupakan kekuatan, ketangguhan, keandalan, atau keunggulan yang dimiliki, sehingga mempunyai kekuatan tawar (bargaining), dan mampu memenangkan persa-Ingan, serta tangguh menghadapi berbagai tekanan dari kelompok tertentu (pressure group)

Modal Kekuatan (Power capital )


Adalah kemampuan intellektual yang dimiliki untuk mencapai tujuan dengan terhormat. Intellectual Capital ini, .

berasal dari pengetahuan atau knowledge, dan kearifan (wisdom) dalam mencapai tujuan .

Modal intelektual ini berakar dari kemampuan untuk bersikap kritis dan kreatif dan innovatif dalam menghadapi

berbagai masalah (critical, and cearitive thinking dan innovative minds.) Kemampuan intelektual ini senantiasa

menghasilkan gagasan segar dan baru untuk penyelesaian berbagai masalah yang dihadapi. dalam berbagai

aspek kehidupan.

Berkaitan dengan investasi, modal intelektual ini, tergambar dalam kemampuan pengelolaan sumberdaya

investasi, dengan efisien dan efektif.

Bagi pemerintah sebagai penyelenggara Negara melalui pengelolaan APBN atau APBD, Intellecual capital

ini adalah kecerdasan dalam melaksanakan pelayanan publik yang prima secara efisien dan effektif. Hal ini

tergambar pada berbagai kebijakan pemerintah, dalam melayani dan melindungi masyarakatnya, dalam

berbagai kondisi yang dihadapinya

Bagi perusahaan , Intellectual Capital ini adalah kecerdasan dalam melihat dan memfaatkan, serta

membangun peluang usaha (Entrepreneurship) menghadapi berbagai tantangan usaha,dan sukses

dalam berusaha tanpa melakukan keculasan, kecurangan atau hal hal tercela lainnya

Modal Intelektual (Intelectual Capital)


Adalah kekuatan sosial budaya yang dimiliki untuk mencapai tujuan. Sosial budaya merupakan sistem nilai

(values), yang diyakini dan berkembang dalam suatu komunitas atau kelompok masyarakat.

Sosial budaya membentuk pola pemahaman, perilaku dan persepsi anggota masyarakat mengenai sesuatu.

Modal Sosial Budaya dapat berbentuk kesamaan perasaan, semangat kebersamaan, rasa persahabatan,

saling percaya dan tenggang rasa, diantara anggota masyarakat

Secara makro (nasional), berkaitan dengan investasi, Modal Social cultural yang diperlukan adalah terba-

ngun nya pemahaman dan perilaku masyarakat mengenai pentingnya pengembangan investasi untuk menjaga

dan meningkatkan kualitas kehidupan. Dalam konteks Negara hal ini sangat diperlukan.

Bila modal sosial budaya seperti diatas dapat diwuJudkan, maka akan mudah diciptakan kesatuan langkah

dan tindak dari segenap potensi bangsa untuk membangun masa depan yang lebih baik .Bagi pemerintahsebagai penyelenggara negara, maka membangun dan memelihara modal sosial budaya atau Socio Cultural

Capital ini merupakan modal yang sangat strategis.

Jika di dalam masyarakat sudah terbangun rasa saling percaya dan tenggang rasa yang tinggi di antara sesama

Nya maka, berbagai program dan kegiatan pemerintahan lebih mudah dalam operasionalnya. Karena sistem

Nilai dimasyarakat dapat menjadi katalisator untuk menjalankan berbagai program untuk meraih kemajuan

Masa depan yang cemerlang

Modal Sosial Budaya (Socio Cultural Capital)


Bagi perusahaan, atau swasta, modal Social Cultural ini adalah budaya perusahaan,

Atau Corporate culture dalam menjalankan bisnis atau usahanya .Bila suatu perusahaan,

sudah kuat modal sosial budayanya, maka perusahaan tersebut, akan beroperasi secara

solid, tidak mudah goyang, dan para karyawannya sangat kompak, dan mudah diarahkan

manejemen dalam mengelola usaha.

Hal ini ditunjukkan dengan terwujud dan terbangunnya Internal Trust dalam perusaha-

an, melalui penegakan prinsip prinsip Good Corporate Governance (GCG).

1. Setting vision and DIRECTION for the business2. Translating the vision into a MARKET strategy; which segments to target, how to differentiate

to the chosen customers2. Building strong PROCESSES, across functions and corporate boundaries, to deliver products or

services to those markets4. Motivating and skilling PEOPLE, to operate and manage the processes, deliver to the markets

and achieve the vision.

Business transformation MANAGEMENT


The Intellectual Asset Management (IAM) Revolution

The evolving technology-based economy of the 1990s, characterized by shorter product cycles, rapid infiltration of e-commerce and an increase in patenting activity, initiated a shift in strategic thinking for many companies.

A study conducted by the Brookings Institute shows that in 1978 approximately 80% of a firm’s value (non-financial, publicly traded companies) was associated with its tangible assets. By 1998 approximately 70% of the studied firm's value was associated with intangible assets.

Innovative companies who realized and understood the importance of intangible assets (or intellectual assets) to the market value of their businesses began implementing programs to proactively exploit and manage these important assets. As a result, many of these companies have used their intellectual assets to weather the current tough economic times and have secured a strategic advantage over competitors, providing not only short-term financial benefits, but long-term strategic and competitive advantages in the marketplace.


Implementasi sistem Informasi Assets Intellectual Mangement (IAM)

Organize

Membentuk unit organisasi dan personal yang

kompeten Mengumulkan

informasi mengenai kekayaan Intelektual

Perusahaan

> Screen

Melakukan pengamatan

(Screening), mengenai jenis Informasi mana

saja yang penting untuk di lengkapi,

dianalisis, dan sebagainya

(Gunakan Kriteria)

> Asses

Melakukan evaluasi dan pendalaman

(Assesmen) terhadap Infomasi kekayaan

Intelektual Perusahaanyang sudah

tersedia(Gunakan Kriteria)

> Extract

Menyaring Informasi penting hasil

Assesmen, untuk selanjutnya digunakan

untuk merumuskan kebijakan.

(Buat Rencana yang Rinci ke masa depan)

a. Contoh Kriteria yang digunakanb. Kode Industry ( ISC) c. b. Unit Bisnis d. c. Core/non-core e. d Ketergantungan e. Umur Lisensi , patent, atau hak hak intelectual lainnya


Review and Clustering of a Company's

Intellectual Assets Management (IAM)

Reveal which products and technologies are Strategic and Core to the business

Establish a technology roadmap to help guide product development

and funnel resources to high value projects.

Display those which are used to generate

revenue

By doing so, companies that are nimble enough to make wise resource allocation decisions for innovative products in key markets will bring technology to market faster than their rivals, increasing market share and enhancing long-term shareholder value.

Pada tahap ini harus mulai diterapkan penyusunan data based IAM secara electronik, dan tetap memelihara dokumen yeng memuat informasi berkaitan dengankekayaan Intelektual yang dimilki perusahaan.04/10/23 26Henry F Noor.doc

1.What patents or technology areas/know-how can be licensed?

Licensing important technology outside a core business was illustrated by the aerospace and defense industry in the 1990s, that since has realized that much of the technology they developed (for example, GPS) is applicable to consumer products. In such a situation, licensing to non-competitors outside of the company's core business is relatively low-risk.

One basic way to identify licensing opportunities for technology outside a company's core business is to review the patent classes established by the PTO during the filing process. The PTO classification may provide a roadmap for potential licensing opportunities.

Companies license for many reasons, including a strategy to penetrate a market or establish a standard, using licensing to generate income or licensing to form a strategic alliance.

There are reasons to license core technology, including licensing to establish a standard or licensing to acompany better equipped to maximize the technology's value (well known brand name, larger distributionsystem), but these types of decisions must be strategically analyzed and valued. On the other hand, if thepatent or technology is not strategic to the business, there may be an opportunity to externally license.

When licensing, a company should consider whether the technology is core to the business or productlines.


2. What can be commercialized? The company should search for any overlooked "gems" in the portfolio that might be well-suited for a joint venture or strategic alliance. A company with potentially valuable intellectual assets, but lacking some of the complementary assets to exploit them, may be able to partner with another company to generate an entirely new business opportunity. Alternatively, there may be a viable invention that can be developed in-house which is only discovered during the IAM process.

3. Are my technology rights being enforced? Multi-million dollar awards for patent infringement are common and companies who are not actively policing their intellectual property may be forgoing not only sizeable damages awards, but also market share and customers. Along the same lines, the company should explore whether any utilized licenses or development agreements need to be audited for royalty compliance.

4. Does the company have patents that are about to expire or are deemed low-value and should be disposed of? As discussed earlier in this article, patents are expensive to maintain. Patent pruning can save money, and if a patent is about to expire and/or it is not being used in a core product or market, it may be worthwhile to let it expire as you can receive a tax write-off for donating it. It is important to create criteria and to standardize a process around patent abandonment.

5. What are my competitors doing? A critical factor in the process is the ability to understand competitors' intellectual assets and product and market strategy. Monitoring the activities of the competition will identify market trends, product ideas, partners or joint venture opportunities and potential licensing opportunities.


Kapabilitas Dinamis (Dynamic Capabilities)

a. Timely responsiveness,b. Rapid and flexible product innovation, andc. Managerial capacity to coordinate and redeploy internal and external competencies

Winners in today’s marketplace have been firms that can demonstrate :

Therefore it can be defined that Dynamic Capability is the ability to create new forms of competitive advantage, and the ability to create new capabilities

Bagaimana menilai Kapabilitas Dinamis suatu Perusahaan?

Keunggulan ber saing (the competitive advantage) suatu perusahaan adalah hasil dari kombinasi dari: Proses manejerial (Prosess), Penempatan Assets (Position of Assets), dan Tersedianya Peluang (Path)

1. Processes: Coordinating, learning, transforming

a. A unique competency of a firm may be how it coordinates internal and external activitiesb. These processes have to be congruent and complementary; i.e., the work together as a system; thus they are

“sticky”c. Radical organizational reengineering will usually be required to support new products or servicesd. Perhaps this is best done if embedded in a separate subsidiary where a new set of coherent processes can be

developed.

Coordinating


Learning

a. Learning is a process that enables tasks to be performed better and quickerb. Learning requires common codes of communication and coordinationc. Learning becomes embedded in routines and group behaviors

Transforminga. The ability to sense the need to reconfigure

a. Surveillance, b. Willingness to adapt “best practices” c. Benchmarking

b. The ability to minimize the costs of reconfiguring and transforming

2. Positions : the unique asset holdings of the firm

a. Technological assetsb. Complementary assets: Those assets need to take advantage of the technological assetsc. Financial assets While cash is fungible, it might not be available, thus cash can create differentiationd. Reputational assets External actors must respond to what they know rather than what is knowable about the firme. Structural assets The degree of hierarchy and rigidity has a bearing on an organization’s ability to develop new

competenciesf. Institutional assets The regulatory environment (laws, regs, public policies, cultural mores, etc.) can be a basis of

differentiation among firms . . . Geography matters! National culture matters!!g. Market assets Market share has traditionally been seen as an important differentiator; it’s probably not that

important in hypercompetitive marketsh. Organizational boundaries The degree of integration (vertical, lateral, horizontal) can impact the firm’s ability

to access unique assets and processes


3. Paths : path dependencies, technological opportunities

Path dependencies: a. Where a firm can go often depends on the firm’s current positionb. Its current position is often shaped by the path it has traveled “History

matters!”c. Companies with the best products and services will not always win; chance

events may cause “lock-in”d. However, in hypercompetitive arenas “switching costs” can be quickly over

taken by “switching benefits”

Path Technological opportunities :a. A firm’s past experiences taints what they choose to see and what they choose to adoptb. Similar firms do not look at the same menu of technological choices; c. and even if they have the same choices, they price them differentlyd. They are looking at menus with different choices and different prices


Copy Cats, Replication Imitation, and Emulation

Replicationa. Often even the firm, let alone its competitors, cannot fully understand the reasons for its distinctive

advantageb. This makes it hard to expand operations, especially to other countries or product lines

To sustain competitive advantage the firm’s competencies must be difficult to copy, to replicate., to imitate, and to emulate:

Imitationa. If self-replication is difficult, imitation by others is definitely harderb. Factors that make replication difficult also make imitation difficultc. Reverse engineering can be used to assault a product; processes are easier to protect d. A firm need not expose its processes in order to exploit them

Emulationa. Emulation occurs when firms discover alternative ways of achieving the same

functionalityb. In hypercompetitive markets there is little a firm can do to protect itself from emulators

other than to expect and plan for their assault


5.Recognizing a Firm's Intellectual Assets

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