System Dynamics StermannJournal of Systemic Knowledge Management, April, 1. Systemic Knowledge Management Managing Organizational Assets. For Competitive Advantage. Peter A. C. Smith, The Leadership Alliance Inc., Ontario, Canada. ABSTRACT. Briefly reviews the context for the increased interest in more. Intellectual Capital. Balanced Scorecard BSC, and Knowledge Management. Contends. that overemphasis on developing and leveraging intangible assets. Proposes a new. approach, Systemic Knowledge Management SKM, to visualize and. Illustrates SKM using system dynamics models. Highlights the relevance. Discusses how a combination of SKM. BSC can be utilized. Points out that a particular strength. SKM approach is that it is fully consistent with traditional. Introduction. There can surely be no quibbling if I begin this article by saying. These. assets are comprised of financial, and tangible and intangible. For simplicity, consider financial assets as cash, and. Traditionally corporate assets have been narrowly defined to include. However. it is clear that organizations require a much broader range of. This is to say that organizations must not. This article first briefly examines the context for the emergence. I will then explore my contention that such. As. part of this discussion I will show that current methods of dealing. Such an approach is part of what I. Abstract Background and Methods. The cause of childhood hyperactivity attention deficithyperactivity disorder is unknown. We investigated the hypothesis that. MIT 15. 871 Introduction to System Dynamics, Fall 2013 View the complete course http Instructor John Sterman Professor John. Retail Man Pos 1.90. Systemic Knowledge Management this concept will also be. Current Competitive Financial Business Contexts. The current competitive environment is driven largely by the emergence. Drucker has described Drucker. The emergence of this knowledge era is radically changing. While the intangible assets of firms are increasingly. Any of the approaches reviewed or described in this article will. Based on past practices, managers tend to lead their firms as. Walsh, 1. 99. 6. Effective management of intangible assets requires. Valuing and measuring intangible assets promotes strategic organizational. Itami, 1. 98. 8 and generates the renewable organizational. Leonard Barton, 1. Organizations have had to face up. In the knowledge era, the creation of corporate. More and more firms are coming to understand that in ignoring. Predictably. the holistic harmonized management of all of the organizations. This is an important mistake since the basics of systems theory. Checkland, 1. 98. Rapoport, 1. 98. 6 instruct that optimizing the. Unfortunately, if this lesson is not learned, efforts. TQM, process re engineering, and. The following three sections. Intellectual Capital IC. Although a wide variety of authors for example Machup, 1. Itami, 1. 98. 7 Sveiby, 1. Drucker, 1. 98. 8 Aaker, 1. Hall, 1. 98. 9. Crawford, 1. Sakaiya, 1. 99. 1 published books and articles highlighting. Thomas Stewart 1. System Dynamics Sterman ServicesIntellectual. Capital. From 1. 99. Lotus Notes. based network called ICON Intellectual Capital On Line Network. Canadian Imperial Bank of Commerce, which was. Since then interest has spiraled Brooking, 1. Edvinsson amp. Malone, 1. Stewart, 1. 99. 7 Roos et al, 1. System Dynamics Sterman' title='System Dynamics Sterman' />In particular, a practical development of IC. Balanced Score Card, first described by Kaplan amp. Norton 1. 99. 2, has come into common usage, and will be discussed. Intellectual Capital is a system composed of three elements Human. Capital Customer Capital and Structural Capital. Definitions. provided by Saint Onge 1. Human Capital. is defined by Saint Onge as The capabilities of the individuals. Structural Capital is defined as The organizational capabilities. Customer Capital is defined as The depth penetration. In my own work and for the purposes of this article I tend to. Human Capital. comprises transient knowledge and capabilities in the sense that. Structural Capital comprises the. These three elements of Intellectual Capital represent and comprise. Value creation. takes place as knowledge is exchanged between these three elements. This serves as the basis for the acceleration of learning and. Leonard Barton, 1. For instance, the firm creates value with. Human Capital interact with. Structural Capital. The quality of these interactions. Customer Capital of the firm Saint Onge. Intellectual Capital as a topic to stir thinking and interest. However, by its unwavering emphasis on intangible. IC masks the systemic nature of how organizations are. The. conceptual nature of IC leads to a list based approach to an. Capital constituents. The sub optimization and side effects which. Senge. in his treatise on the learning organization Senge, 1. Ackoff. 1. 98. 7 and others have used the terms messes and wicked. IC practitioners cannot solve such problems Rosenhead. Checkland Scholes, 1. In addition, IC has not encouraged organizational managements. Senge, 1. 99. 0. Although IC is based on dynamic principles, in. That is IC is typically used. A well established. Swedish company Skandia in. Less formal. snapshots of the current status of an organizations intangible. Such valuations have traditionally. Unfortunately such informational snapshots provide little assistance. Consider the following hypothetical case two organizations with. It is not illogical to postulate. IC would not have. The. benefits derived when an organization explores its strategic options. Systemic Knowledge Management. The Balanced Score Card BSC. The Balanced Score Card was first described in 1. Kaplan amp. Norton, and has continued to increase in popularity. Although. not originally claimed as an IC approach its close relationship. IC theory and practice, and thus is. It has been amply detailed. Kaplan and Norton 1. There has grown. up a considerable body of articles by other authors expounding. On inspection, the relationship between the BSC and IC is fairly. Three of the four elements of the BSC are Internal Business. Perspectives, Innovation and Learning Perspectives, and Customer. Perspectives. These three elements are interpreted in practice. Kaplan and Norton, 1. Structural Capital. Human Capital and Customer Capital. By adding Financial Perspectives. BSC does meet one of the concerns that. I have expressed in the previous section. That is the need to. Human, Structural or Customer Capital initiatives envisaged. The. BSC does place emphasis on the measurement of change within the. However, the BSC is still a list based method. In other words it still suffers from most of the drawbacks associated. IC approach itself. This is not to say that the BSC is not an extremely useful way. Use of. the BSC in combination with more dynamic asset management approaches. I will describe in a later section. Knowledge Management KM. During the various discussions that took place in the early 9. Intellectual Capital, the word knowledge in. However, in general, Knowledge. Management essentially referred to the IS technologies dealing. Internetintranet applications where information is. IS networks. There has been a growing trend to treat knowledge management in. In this context, knowledge. The understanding and interpretation required to derive actionable. This is because information is perceived, interpreted, and codified. This. is why it is so essential that the explicit and tacit dimensions. Nonaka and Takeuchi, 1. The social implications of treating knowledge management in this. Knowledge management in this sense has become. IC movement. However, the emphasis is moved. ICs strategic manipulation of the three Capitals with its. Capitals. The work of Davenport. Prusak 1. 99. 7 is typical of this new more practical approach. The change in emphasis from IC to KM has lead to more detailed.