Luv Story

 

A young design house can never dream of flying high when a couple of young designers decided to put their dreams and creativity into a real business.

 

On the way to register some of the drawings as trademarks, they ran into the “Intellectual Capital Management Consultancy Programme” offered by the Intellectual Property Department of The Government of the Hong Kong Special
Administrative Region. When they decided to enroll the programme, they had no
idea of what “intellectual capital” was. It was like some kind of “stuff” that
relevant to them but they were not sure what.

 

During the six hours of intensive discussion and free-style exchange of idea, founders of the design house had a good grasp of what kind of intellectual capital they already had. Hidden value was uncovered at a degree far more than
what they originally anticipated, especially at the time when a potential
partner approached them for a business venture.

 

They were equipped with the knowledge of stakeholder-care mentality, an intellectual capital (IC) value tree, and challenges on intangibles ahead of their business course.

 

In May 2009, their IC value tree was identified as:

 

Human capital: 52%

Structural capital: 20%

Relational capital: 28%

 

The weighting was based on the importance per each intellectual capital item in generating value to their stakeholders. After a year or so, it was observed that they have accumulated several folds of intangibles. They knew
they have done something right from that point.

 

It all started few years ago in a night packed with friends and drinks where the crazy designers announced that “lets give it a try! I don’t really care whether it works or not!”

 

Note: Their 1st IC reporting can be viewed at:








www.luvluvpig.com/icreport/Luv_Intellectual_Capital_Report_2008-200...

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Replies to This Discussion

CK - Thank you very much for sharing this. I know the program in Hong Kong has been a great success. What were the top three lessons for management in the IC information?

Some of the lessons top management learnt from the programme:

 

1. Ratio of intangibles vs. tangibles which is amazing

2. Relative importance of different IC elements

3. Very hard to estimate the dollar value for IC

CK -

The What Works in IC is now a formal academic study. We would love to have your story in the study.

To do this, just go the What Works in IC and click START SURVEY at the end of the text box.

Thanks,

Mary

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