KI Senior Editor Kimberly Merline recently spoke with Edvinsson about Skandia, IC measurement and the future of the IC movement. It is future earnings capabilities of an enterprise and is sometimes measured as the gap between the market value and the book value, which is a kind of simplification but it gives you a rough estimate. To measure these, we have developed the Skandia Market Value Scheme, the Navigator and, recently, the third model, the Intellectual Capital Index. The first model is what we call the Skandia Market Value Scheme, which provides the building blocks for intellectual capital. That model gives you the first rough cut between human capital and structural capital.
Structural capital is the supportive infrastructure of human capital.
It includes such factors as the quality and reach of information technology systems, company images, proprietary databases, organizational concepts, and documentation. It includes intellectual properties such as patents, trademarks and copyrights. Structural capital contains customer capital and organizational capital. Then you go from that into process capital and innovation capital. With this, we are able to have a supplementary accounting system that gives you four times the information than just financial information.