Demonstrating the benefits of knowledge management assets : developing and applying a valuation methodology

Abstract

Since the early 1980s numerous knowledge-dependent organizations have made diligent attempts to measure their intangible assets. In more recent years, knowledge-dependent organizations have expressed a desire to demonstrate the benefits resulting from significant investments in knowledge management assets in order to provide reassurance to senior executives, to motivate knowledge worker utilization of the asset, and to leverage further funds for knowledge management investments. A six-step methodology is prescribed in this thesis to assist organizations seeking to identify both qualitative and quantitative benefits realized from the utilization of knowledge management assets. This methodology is underpinned by take-a-ways from current intellectual capital measurement models found in literature, and the lessons learned from industry application of an immature version of the prescribed methodology in two industry case studies. Lessons learned from the practical applications of the methodology, and a detailed description of the methodology, are provided as key findings of this thesis.

(cont.) Application of the methodology in the provided industry case studies indicates significant benefits from the utilization of knowledge management assets can be demonstrated if the appropriate performance indicators are selected for measurement.