Todays 21st century organizations needs a system approach to intangible asset valuation. Intangible assets are creating most of the bottom line value in organizations in the current global competitive environment. It has been said that organizations know a lot of things, but they don’t always know what they know. Often times we know there is a wealth of information, but where it is, how to find it, where or who to call to get it, generally are obstacles that prevent sharing, which significantly impacts the performance of an organization. This is not something new, but a problem many organizations face. We know expertise is available, but we don’t always capture it or know where to find it once it is captured. Our most valuable asset is the collective skills and expertise of people. This “know-how” from others can be used when facing similar experiences is “lost” and unavailable for reuse and the ability to measure its contribution to performance. It is more important than ever to establish effective paths to value intangible assets. It is imperative that todays organizations embark on a journey to establish a culture of sharing and a means to value the contributions of these intangible assets.
Quantifying, valuing, and maintenance of intangibles has proven to be a difficult task for the 21st century organization. A core objective of intangible assets is the valuing of knowledge, a key outcome of the knowledge worker and the business environment. Knowledge creation, capture, sharing, dissemination and valuing is an evolving and dynamic process. However, there is little to no focus on the process itself, because traditionally knowledge management (KM) does not have a systemic approach; instead it is always associated with a disruptive process. A systemic approach to the identification, measurement and management of knowledge is a complex venture. This paper presents a theoretical model that uses systems engineering to develop methods that promote a more efficient and effective path to the establishing KM initiatives that track knowledge from its inception to its value — or a systemic approach.