The reduction of Intellectual Capital Erosion is an often significant focus of knowledge management and intellectual capital management practices. As mentioned earlier, firm's must balance their goods and services between existing demand and future demand, hence the TMV or True Market Value enters the picture. This is just one example, many firms exhibit radically different 3-dimensional true value structures than the one presented here. Overall, the firm's true value is composed of the firm's intangible capital, plus its tangible capital. Every executive needs to be aware of the strategic implications of the IC framework.
Intangibles financially effect every organization.
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