Question

Discuss how the Skandia Navigator is used to measure intellectual capital.

Answer 1

Skandia Navigator Edvinsson and Malone (1997) SC measures intellectual capital through the analysis of up to 164 metric measures (91 intellectually based and 73 traditional metrics) that cover five components: (1) financial; (2) customer; (3) process; (4) renewal and development; and (5) human

1. Financial focus captures the financial outcomes of our activities. It is here where we establish long term goals and also a large part of the overall conditions of the other.
2. Customer focus gives an indication on how well the organisation fills the needs of its customers viavia products and services.
3. Process focus captures the actual processes of creating services and products are customers desires.
4. Renewal and development aims at reassuring our organization long term renewal and in parts itsits sustainability
5. Human focus is the heart of the organization and is essential in the value creating organization. The process of knowledge creation is visualized in this focus area.