Assignment 1 - Intellectual Capital Analysis (mini essay)

INNOVATION AND TECHNOLOGY TRANSFER

Name: Carla Parra

Score: 10 points

Instructions:
1. Read chapter 4 of the book “Five eyes on the fence”, about Intellectual Capital.

2. Think about the main aspects of the reading in relation to the concepts discussed in
class, and write an analysis with your perspective about Intellectual Capital and its
value for companies. In order to guide your analysis, answer the following questions:

a. What do you understand by the term “commodity” and how is it explained in

the text?

In this case, the word "commodity" is used to describe a commercial product,

which was based on intellectual capital knowledge and therefore can be
easily replicated. The idea is to move away from comfort by adding new
intellectual capital looking for a differential in competing products.

b. How can you add knowledge to create a unique intellectual capital for
products and services?

According to the provided text, the incorporation of intellectual capital hinges

directly on other forms of capital, namely social, commercial, and structural
capital. These various forms of capital hold equal significance, as they
collectively produce a product that not only addresses a specific need but
also carves out a unique market niche. This, in turn, leads consumers to seek
ongoing improvements to the product, driven not solely by new requirements
but also by their trust in both the product and the company. Consequently,
this dynamic prompt competitor to vie for their own competitive niches,
sparking a competitive race to enhance intellectual capital through continuous
updates.

c. What examples does the author use to explain this? Would you think of
another example?

The text highlights two contrasting examples, as each case involves

companies that were established based on distinct forms of capital. The first
example revolves around Uber, where the company essentially transformed
its structural capital away from traditional taxis. In doing so, it bolstered its
intellectual capital, enhancing its ability to anticipate human needs through
social capital and establishing a set of core values.

The second example pertains to Sony, which, unlike Uber, already possessed
a well-defined structural and intellectual capital that had enabled them to
dominate product sales for years. However, Sony encountered challenges in
 comprehending user preferences and foreseeing how their cutting-edge
technology could be effectively utilized. Unlike Uber, Sony failed to
consolidate its intellectual capital by integrating it with social capital, resulting
in a decline in the company's overall value. Another example: Amazon is a
good reflection of what should be done to consolidate its company, since like
Uber, this company constituted its intellectual capital by adding a change in
structural capital, social capital and human capital. These additions protect
companies from future competitors.

d. What does it mean turning other capitals into intellectual capital?

Intellectual capital always needs to be constantly changing and updating with

different types of capital such as social and structural. With this, the company
manages to define a value that gives the user loyalty.

e. What strategy would you use to strengthen your own intellectual capital as a
scientific professional?

I find it interesting that you strengthen my intellectual capital by looking for

structural capital that can be innovated. I think that many companies are at a
point where they can be updated to create, improve and maintain needs in
the population.