Intellectual Capital: The currency of the future

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National Intellectual
Capital Index Dr. Nick
Bontis Associate Professor of Strategic
Management, McMaster U. Director, Institute for
Intellectual Capital ResearchAssociate Editor,
Journal of Intellectual Capital Chief Knowledge
Officer, Knexa Solutions
www.NickBontis.com
nick_at_bontis.com
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United Nations Benchmarking
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Conceptual Model - Firm
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Conceptual Model - Nation
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Developed Nations
AustraliaCanadaChina
FinlandFranceGermany
ItalyJapanNew Zealand
Norway Russia Singapore
SwedenUKUSA
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Descriptive Statistics (1 of 2)
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Descriptive Statistics (2 of 2)
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Prime Ministers Report
Category Canada's Performance Top Performer
Economy Average U.S.
Labour markets Top U.S.
Innovation Poor Sweden
Environment Poor Sweden
Education Average U.S.
Health Average Japan
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Financial Capital
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Human Capital (1 of 2)
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Human Capital (2 of 2)
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Process Capital (1 of 2)
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Process Capital (2 of 2)
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Market Capital (1 of 1)
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Renewal Capital (1 of 2)
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Renewal Capital (2 of 2)
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Development of the NFCI
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Development of the NHCI
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Development of the NPCI
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Development of the NRCI
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Development of the NMCI
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Countries Ranked by NICI
Is the NICI a good predictor of a nations wealth?
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Structural Model of NICI
H4
H6
H1
H2
H5
R2 20.9
H3
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Modified NICI ?
R2 83.3
0.913
-0.670
0.578
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Poverty
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Health
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Gender Empowerment
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Clustering by NICI and GDP
1.0 0.5 0.0
?
Relative GDP / capita
0.0 0.5
1.0
NICI
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G8 by NICI and NCFI
4.0 0.0 -4.0
RelativeNFCI
-2.0 -1.0 0.0 1.0
2.0
Relative NICI
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Further Developments ...

• IICR KM Diagnostic Tool (business and government)
• Health, financial services, software, chemical,
  hospital
• IICR KM Seminars (business and government) -
  certification
• Education (McMaster University, Tangonow.net)
• eFlow Audit (codified proxy of e-mail flow)
• World Congress (http//worldcongress.mcmaster.ca)
  Jan 19-21, 2005
• Journal of Intellectual Capital
  (http//www.emeraldinsight.com/jic.htm)
• 1 text Oxford U. Press with Choo, 1 books with BH
  KMCI Press
• Knexa.com (Tribute incentive methodology, ICUs,
  rewards)
• NICI (National Intellectual Capital Index) for
  United Nations
• Longitudinal causal mapping with integration (RBC
  project)
• Citation impact (literature and cases)
• Knowledge auction experiments

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Knexa Solutions

• New knowledge assets with old value measures
• Market mechanism the invisible hand of the
  market
• Exchanges
• whats next? talent markets total markets
• Internet Auction Model
• E-bay, Yahoo, Bid.com, etc. stickiness, bid-ask
• Cost / benefit micro calculation
• ICUs electronic tokens and the reward of
  redemption

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5 To Dos Immediately

1. Raise awareness about knowledge era
   challengesAction Fully engage employees about
   KM
2. Dont throw training dollars down the
   toiletAction Benchmark your TD / FTE
   investment
3. Attempt to recoup talent that leaves the
   firmAction Implement universal exit (entry)
   interviews
4. Accelerate your knowledge absorption rateAction
   speed reading test (www.bontis.com/speedread)
5. Be mindful of technology investmentsAction Test
   that search costs are reduced

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Thank you!

• Speaking, training
• Keynotes, seminars
• www.Bontis.com/research.htm

Dr. Nick Bontis Ph.D.DeGroote Business
School McMaster University Tel [phone]
x23918 Fax [phone] Director, Institute
for Intellectual Capital Research Chief Knowledge
Officer (CKO), Knexa SolutionsAssociate Editor,
Journal of Intellectual Capital nick_at_bontis.com
www.Bontis.com Subject Schulich KM