The value of an enterprise is made of physical assets, various financial assets and, finally, intangible assets, i.e., intellectual capital (IC). The term intellectual capital conventionally refers to the difference in value between tangible assets (physical and financial) and market value. . . Measuring the real value and the total performance of intellectual capital`s components is essential for any corporate head who knows how high the stakes have become for corporate survival in the knowledge and information age. So, the main point is how an organization can affect the firm's stock price using the leverage of intellectual assets.

Classification

Intellectual Capital is normally classified as follows:

Human Capital

Human capital

Human capitalis the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience...

The value that the employees of a business provide through the application of skills, know how and expertise. Human capital is an organization’s combined human capability for solving business problems. Human capital is inherent in people and cannot be owned by an organization. Therefore, human capital can leave an organization when people leave. Human capital also encompasses how effectively an organization uses its people resources as measured by creativity and innovation.

Structural Capital

Structural capital

Structural capital is the supportive infrastructure, processes and databases of the organisation that enable human capital to function. Structural capital includes such traditional things as buildings, hardware, software, processes, patents, and trademarks...

The supportive infrastructure, processes and databases of the organisation that enable human capital to function. Structural capital includes such traditional things as buildings, hardware, software, processes, patents, and trademarks. In addition, structural capital includes such things as the organization’s image, organization, information system, and proprietary databases. Because of its diverse components, structural capital can be classified further into organization, process and innovation capital. Organizational capital includes the organization philosophy and systems for leveraging the organization’s capability. Process capital includes the techniques, procedures, and programs that implement and enhance the delivery of goods and services. Innovation capital includes intellectual properties and intangible assets. Intellectual properties are protected commercial rights such as copyrights and trademarks. Intangible assets are all of the other talents and theory by which an organization is run.

Relational Capital

Consists of more identifiable items such as trademarks, licences, franchises, but also the less definable, such as customer interactions and relationships. The notion that customer capital is separate from human and structural capital indicates its central importance to an organization’s worth.