There is the external structure. And last but foremost, there is employee competence. This can make all of the difference. Competence is one part knowledge, one part ability. It is knowing combined with doing.
Competent employees create the external structures as well as the internal ones.
Without them, a company doesn't make much of anything, physical or financial. Sveiby doesn't maintain that it is better to produce software than sedans. And he explains how. He points out that taking this approach can, indeed, make companies more profitable-and he warns that those companies that don't are not going to fair well in the days to come. Intellectual capital is packaged useful knowledge.