Intellectual Capital development through Soft Systems Thinking Essay

Intellectual Capital ripening through Soft Systems Thinking - Essay ExampleIn truth, all of the components of a business argon essential in the systematic flow of finances (Strassman, 1998). This paper discusses the importance and significance of noetic capital and its impact to a business endeavour through the application of soft systems thinking methods.Intellectual capital can be defined in numerous ways and its rendering usually depends on the economic theory em contrivance to it. The most common definition of intellectual capital states that it is a conclave of both instructional (e.g. dressing materials coming from the employers) and individual capital (e.g. enthusiasm and mindset of an employee) in a financially-productive enterprise. Another common definition is that it is a form of capital that generates intellectual rights. Intellectual capital is assumed to be intangible but is nevertheless crucial in any enterprise. It has no monetary value and is not include in t he actual report but it generates products that are considered to be intellectual in nature (Wikipedia, 2006a).Economic theorists apply the term intellectual capital in most modern financial sectors such as information technology (IT), innovative research, technological protocols and many more fields which are associated because of their use of modern technology. This definition may be due to the accent mark of modern economic theorists to industrial concepts. These definitions may have also originated from the Internet boom of the mid-nineties and the early on years of 2000. During this period in history, professionals working on the information and computer technology sectors banded together to form several computer companies, some of which has achieved monumental success which continues up to today. This notion relates to the 1970s-80s tulip boom, where the whole field seemed to be entranced with tulips and their complimentary products. During that time, manufacturers and di stributors of came up with various permutations of their products as they assigned different prices for each of the combination of tulips and their complimentary products such as pots. In the same way, computer professional constantly repackage and revise their products to commercialise them in some other price group. Many consumers consider this as a sly ploy done by manufacturers for them to buy their products (Wikipedia, 2006a). Leonard-Barton (1992 -1995) emphasised on the significance of experience in the formation of notional and innovative ideas on brainstorming activities done by most companies. Her studies reveal that the distribution and dissemination of knowledge to persons that are involved sparks innovation. She believes that the added social interactions done in the brainstorming activities are crucial and proves to be actually effective in the creation of new ideas and knowledge for the firm. When persons contribute their own ideas to each other, organisational kn owledge is organize thereby increasing the firms knowledge base and creative capacities. These capabilities are innate to the participants and are not soft copied, obtained or stolen by others forming the so-called competitive edge of the company (Gao et al, 2002). The management of (restricted) knowledge among employees now becomes an actual part of intellectual capital which will provide the necessary push or leverage needed for