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Comprehensive Intellectual Capital Management: Step-By-Step by John Morecroft

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Chapter 14. IC Strategy and Customizing the CICM Model

The CICM model is designed to manage all forms of intellectual capital (IC) at three stages, in which management objectives, processes, practices, and tools are different for each stage. The CICM model is multilayered and is presented in a way that is relevant to every type of business and industry. The CICM model presents the general components, essential strategies, processes and practices, and necessary tools for the effective management of IC as part of the strategic management of business as a whole. Therefore, it should be customized to the needs of every business. Not every business needs to implement all the provided components to have an effective ICM system. Rather, the CICM model should be used as the basis for designing the ICM system that fits an organization's, and/or a business unit's, needs and IC strategy. In particular, the CICM should be customized along three variables. These include the organization's industry or line of business, overall business strategy, and situation. These are outlined below.

CUSTOMIZING CICM—THE MAIN THREE VARIABLES

The Industry Variable: Identify the Value Drivers

The industry or line of business in which a certain organization or business unit competes determines the type of IC that drives value. A study by the Financial Accounting Standards Board (FASB) on corporate voluntary disclosures in 2001[374] revealed that different industries, even similar ones like pharmaceutical and chemical ...

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