Intellectual Capital and Competitiveness Essay Example | Topics and Well Written Essays - 2250 words

Intellectual Capital and Competitiveness - Essay characterNot so long ago, business resources consisted of 80% tangible assets and resources. However, the picture today is quite different. By 1999, 80% of organizations assets were intangible (Andersen and Striukova, 2010). Todays economy is characterized by intellectual property and assets forming a major part of business assets and resources. Therefore it is paramount to identify how intellectual pileus and resources may influence steering for the organizations benefits. According to economic theorists, there are tether major components of intellectual capital human capital, structural capital and node capital. Human capital represents employee competence, brainpower and knowledge (Berry, 2005). node capital on the other hand designates the organizations relations with its suppliers, customers and distributors. Structural capital represents culture and systems, processes and practices (Bosworth and Webster, 2006). Recognizi ng the three components of intellectual capital is important for negotiaters who are responsible for ensuring that the organization runs and performs as well as expected. Customer capital is one of the more or less important aspects of any organization. Customers are invaluable sources if organizational competitiveness in terms of market dominance, financial performance, dynamic capabilities and technological advantage. In todays business purlieu, or so companies have turned to e-business as a musical mode to boost their businesses (Al-Ali, 2003). This means that a large voice of an organizations customers are found online. Managers need to evaluate the way they manage their entire customer capital so as to ensure that they maximize on this important part of the organization (Daum, 2010). This composing evaluates how an organizations online and offline customer capital may impact on management, and how this influence affects the organization on a whole. Managing Customer Loya lty and Branding It is important for companies to develop strong long term relationships with their crisscross customers so as to build a sustainable business (Choo and Bontis, 2002). ICT has changed the conventional methods used by managers to manage their intangible customer base asset. More and more people are opting to use the internet to do business. In some ways, the online customer base has some needs that are different from those of conventional customers (Bosworth and Webster, 2006). It is for this plain reason why managers have to come up with ways to work within the new e-market environment so as to satisfy the needs of the customers. The creation of processes or platforms to build and maintain e-business customer loyalty is not a task that a manager can achieve by himself (Jolly and Philpott, 2004). He has to strike on board other customer relations experts to help him draft strategies that will appeal to most of the customers. The first thing that should be consider ed when creating customer loyalty management strategies is the organizations end goal (Daum, 2010). Although the aim of customer loyalty management is pegged on the idea that the customer has to be satisfied at all times, the way this is done should be determined mainly by the organizational objectives, that it, what the business aims to achieve in the scam and long term. The operational front of an e-business should also be considered when managing e-business customers (Bryer, Lebson and Asbell, 2011). This means that the