Yesterday was a very dense and informative day at IC6. Afterwards we were at a bar where a beer costed € 9,60 but due to the deep conversations it was worth it! Here are my notes for the second day.

Evaluating Competences and Intangible Assets in Brazilian Firms

• Speaker:Eduardo Rath Fingerl
• BNDES is the Brazil Development Bank with about 2.000 people.
• The BNDES approach to credit evaluation: a methodology to evaluate competences and intangible assets.
• Highlights: 1.) from knowledge control on a personal basis to a formal knowledge management process (e.g. collect information on firms) 2.) Change of focus: from creditworthness to financial soundness on basis of competences and intangible assets.
• Structure of the metodology: spider diagram for every comany with six internal dimensions (corporate strategy, external relations, corporate gonvernance, production and innovation, human resources, financial policy) and sectorial competitive driving forces.
• 12 Companies have been evaluated since march 2010, target: 500 people to be trained by the end of the year.
• A web-based software (MAE, M) was created to support the process with one profile per company that wants to be supported by the bank.

The WICI programme: an update

• Speaker: Yoshiko Shibasaka (KPMG)
• WICI (World Intellectual Capital Initiative) was established in november 2007 in Tokyo, WICI Europe established in May 2009, currently WICI Australia is in the process of establishment.
• Goal: integrated business reporting framework based on the WICI framework (structured by past, current and future, key performance indicators (KPI), XBRL taxonomy.
• Company case (Eisai) was presented at a round table.
• Partners: EBRC, EFFAS, University of Ferrara, METI, Waseds Universiti.

IC reporting and accounting standards: barriers and progress

• Speaker: Stafano Zambon (University of Ferrara, WICI Europe)
• WICI Europe is a legal entity based in Frankfurt at the EFFAS seat.
• Situation: general suspicion of accountants towards intangibles.
• IASB's management commentary guidance published in June 2009 (content: a context for understanding management's objective and related strategy, resources-risks-relationships, information on intangibles).
• It is not clear if this change will really happen (the document is only a draft so far).
• Convergence of IC reporting and sustainability reporting (at least in Europe).
  • Larger concept of sustainability (environment vs. business)
  • CSR goes along with intangibles (business vs. civil society, social license to operate)
  • Systemic vision of company information (interconnected, integrated, combined, comprehensive, holistic)
  • Information on risks
  • Convergence of effort (e.g. European Combined Reprorting Alliance, Accountability4Sustainability)
  • Several attemts to provide standardization of non-financial information (WICI, Global Reporting Initiative, International Interconnected Reporting Committee, Global Compact, ISO)
  • Reporting is voluntary
  • Adoption by small and medium size enterprizes (SME)
• Towards the Integrated Reporting System (Zambon, 2003, Study for the European Commission).
• XSTRATA Annual Report 2008, a mining company in UK, is one of the examples.

IC Reporting in Serbia

• Speaker: Sladjana Cabrilo
• Serbia's position in the knowledge economy at http://www.worldbank.org/kam.
• Application of IAM and Danish Guidelines as methods.
• Intellectual Capital Statment similar to the "Wissensbilanz made in Germany" model based on a questionaire with 32 IC drivers.
• Strategic importance of top 3 IC value drivers (for each of the top 3 indicators have been defined):
  • Human Capital: 1.) efficiency 2.) experience 3.) motivation
  • Structur Capital: 1.) employees' interaction 2.) ICT 3.) managerial process
  • Relationship Capital: 1.) customer relationship 2.) image 3.) supplier relationship
• Comparison between IC reporting in german and serbian service industry is prepared at the moment.
• Source: "The general model for IC reporting in Serbia".

Open Innovation and Perspectives in the "greening" of Aerospace R&T

• Speaker: Jean Botti (EADS Chief Technical Officer)
• Innovation funnel at EADS (proposals, maturing proposals, funded ventures, ventures, businesses) with methods like rapid simulation, outside-in/inside-out, virtual prototyping.
• Open Innovation Logic.
• Innovation Growthh Process: Goal setting, clarity of scope, evaluation of business idea, elaboration of business plan, customer contacts, elaborate offers, ...
• 353 R&T partnerships for open innovation with leading research institutions worldwide.
• New business: MACROS, a simulation tool for product lifecycle management (PLM), pursuing a joint venture with Russia to market.
• About 1000 patents in 2009.
• High challenges due to 2020 goals of ACARE (noise reduction by 50%, NOx reduction by 80%, CO2/fuel consumption reduction by 50%).
• "JFK Goals" (bringing a man to the moon ...) like "zero-emission hypersonic transport", "space tourism" drives innovation.
• EADS Vision 2020 pushes to become more diverse and more global.
• Demographic change makes knowledge management and knowledge transfer a big issue not only on business unit level but on corporate level.

Future and Societal Innovations

• Speaker: Leif Edvinsson
• Website http://hiseed.org (Goal: start 1.5 million companies in 10 years).
• Cyberjaya, the world's intelligent city.
• Website http://fc-alliance.net (remark: Future Center Alliance, follow up of Open Futures project).
• University outside Moskov (Skolkovo) to build a "Russian Silicon Valley" in roughly four years (remark: see also techcrunch article about Skolkovo).
• Book from Carol Lin, TICRC, forthcoming in 2010 (Flyer, PDF).
• Concept of Ba (PDF, 2MB) by Nonaka (remark: orignally by a japanese philosopher but I forgot the name); physical, virtual and mental Ba.
• PWC model of Cities of the Future (city government, private sector, university, vounteers as agents); in general: engagement of success factors as critical success factors.
• Very good comment by Bror: "How to create lobby for the not yet existing?" (future generations).
• My impression: we should not put "speed" as a value per se. Because when we increase the speed knowledge transfer is slower not faster (a very good reflection on this is the concept of "slow knowledge" in the book "The Nature of Design: Ecology, Culture, and Human Intention" by David W. Orr). We saw this also at the last knowledge city summit in Shenzen: of course they have a "green building" but the rest of the city seems to be build in very short time on principles that were used in other parts of the world 80 years ago and I got the feeling in Shenzen that this will not work.

Strategies for a desirable future

• Speaker: Philippe Lukacs (Ecole Centrale de Paris)
• Interplay of potential offer and demand: 45-60: Production (more at lower cost), 60-75: Marketing, 75-90: Quality, now: Innovation.
• "Innovate with the will to contribute to a desirable future".
• Develop ...
  • ... persons and capacities
  • ... reciprocal relations between persons and between groups
  • ... positive relations with the whole of environment
• Four innovations which are today global successes while a priori success seemed impossible:
  • The Grameen Bank (a new mode of credit)
  • Max Havelaar (a new form of trade)
  • Patagonia (a new mode of consumer good)
  • The Logan by Renault (a new type of car).
• A new mode of management:
  • A dynamising aim: from objective (defined by a figure) to a vision (how to get? look widely and rely on strong trends! how to use it? take all decisions through a direct enlightment by the vision! evaluate present situation and all results throug a direct enlightment by the vision! better keep course on vision than yield to easiness!).
  • Means for actions: from exchanges to alliances (strength of alliance before number and size of alliance).
  • Criteria for decisions: from "maximise a difference for one result" to "maximise number of results creating multiplyer effects".
• Remark: the book "The Path" by ... can be perfectly used to find a personal vision and purpose.
• Note to self: there has been some dialog about not "running" but "dancing" which had some resonance in the audience. This reminds me to read again "The Dance of Change: The Challenges to Sustaining Momentum in Learning Organizations" because this book brings the metaphore of dancing to the field of change management.

Conclusion

• The Conflusion (Draft) was put together by Ahmed Bounfur and Jean-Eric Aubert
• Different levels:
  • Global: sens of crises - danger of "reptilian" reactions, need for global innovation programs to tackle global knowledge issues (environment, energy, urban, money, security), ...
  • Macro/National: innovation policies tend to look loke more and more the same all over the world, policy impacts are strongly limited by institutional inertias, need for deep mind set changes in the policy making communities (how to make such a change?), dilemmas and contratictions to overcome
  • Meso: knowledge networks and markets as nervous system of the knowledge economy, future centers to visualize the (im)possible, social experiments for testing public involvement and acceptibility of innovations, social innovation camps, art and aesthetics audits of cities and organizations, innovation spaces (e.g. Nonaka's "Concept of Ba"), many activities - need to monitor.
  • Micro: managers (what about profitable companies which are disasterous for the world? social agenda for multinationals), social innovators (individual engagement, few principles of general application, how to scale up?)
• In search of new perception tools: innovation space navigators (patent maps), neuro science tools to visualize brains, new metrics for knowledge networks, moving from statistics to signals (incl. weak signals).
• A few fundamental tensions
  • transaction (business?) vs. sustainable (societal?) world
  • closed universes (firms?) vs. open universes (networks)
  • quantitative accumulation vs. qualitative life
• Beyond GDP? Gross National Happiness!!!