Sveiby is discussing the area called intellectual capital.
Intellectual capital is packaged useful knowledge.
Knowledge which exists in the heads of employees, gathered from experience, personal intellect, personal characteristics is called tacit knowledge. If I die mid-sentence then what dies with me is all my tacit knowledge . To turn this tacit knowledge into more abiding assets I need to have it made into explicit knowledge. Matsushita Electronics are trying to make a bread-making machine but whatever they do, they can t get the thing to mix the dough correctly. One of their developers, Ikuko Tanaka, has a good idea.