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  • Writer's pictureLiviu Cotora


KNOWLEDGE is the first step in the process of building an Intangible Asset.


This is the case for the Human, but also for the Robot is the same definition, by taking out the word HUMAN in the knowledge definition.

Knowledge is a flow, and is Tacit or Explicit.

Humans are the Source of Knowledge creation, tacit first and explicit next.

Knowledge is first Tacit and this is coming from the interaction of different: brain synapses, new information, learning or just reading, hearing, explaining, correlation with existent knowledge, intuition, and through the active information’s in the verbal’s exchanges.

Tacit Knowledge is reserved to Humans, because of the symbiotically relation between the Human Brain, Neural system, information’s-flow, education, and others genetically combinations.

When the Knowledge is Explicit, than it must be explained, structured, and ready to be exploited in actions, it must be presented on different supports (digital, paper, audio, hardware), now we call it Explicit Knowledge, and if it was obtained in the work environment, than dependent on the work-contract framework, the Explicit Knowledge believes to the company Intangible Asset, it’s ownership is decided, and will contribute to the Intangible Company Value .

In order that this happen the Explicit Knowledge must be Valued on the Company Intangible Market following the IAS 13, and respect the Asset definition of IAS.

The Explicit Knowledge will be converted in another Intangible Value the Competence.

Value is a Flow guided by the need of action or reaction.

The differences between Knowledge and Competence are the followings:

Knowledge generated by Humans, can be transported on different supports, during the actions in which we exercise the Explicit Knowledge, we create procedures, rules, instructions, so we “clean” the Explicit Knowledge from the uncertainty and we make Competence Intangible Value support like : Classes, Videos Audios, Books...

The structured knowledge can be drained in the AI engine after a treatment corresponding to the mining and reasoning method used.

The knowledge is a basis for each kind of activity, not just linked to the company main processes but also to the external company relations with business partners, consumers, government institutions, stakeholders, shareholders.

The company competitive advantage that assure the company durability and profitability, is based on the secret knowledge, permanently revisited and reevaluated for his cash generating power.

The new knowledge for the competitive advantage must rapidly convert in protected IP, and new competence, for new actions in products and services production.

Maximising the Company Value generated by the Intangible Values like: knowledge, competence, partnership, all are depending on the context when this Value is proposed and when is demanded.

Value is a Flow guided by the need of action or reaction.

Intangible Value is Context sensible, the time-to-market through different conversion cycles is crucial for the Company total Value obtained from the generated Intangible Value.

SPEED is the keyword.

All new knowledge will be distributed concomitant in many different company value creation centers, involved in : company external value production, or the company third party production, licensing agreements, along the supply chain network, but also in many others knowledge value centers furnishing knowledge for the company goals linked to the social, environment, governance, business competence in actions.

A new knowledge, at the beginning is clearly defined to create a basis for an action and it’s associated competence, dependent of the workplace, in the Company Value production chains.

Very fast the mining in this new knowledge, will reveal the apparent singularity of the “unique knowledge”, like almost a bouquet of others ones, deducted from the first one, like a root – of- knowledge.

Let’s take an example: new knowledge in “process mining” Value Center, will during its first steps in after-action experience, create Knowledge Value Center to develop “inference rules knowledge” and “neural networks knowledge” Value Center, but also “Business Activity Monitoring knowledge”.

In the next steps, more knowledge Value Centers will be developed, deducted from the same root, but the knowledge produced by each type of knowledge will be “distributed” to tens and hundreds of others types of knowledge Value Centers, others than «process mining” root-knowledge , in all Company Structural and Organizational Capital, part of the Intangible Company Value.

The knowledge transaction value, obtained by the seller – side, for “process mining” Value Center, will have different values.

For the others type of Value Centers, inside the company, in competence, partnerships, or knowledge, for which it is needed to incorporate the “process-mining knowledge”, the price payed for it following, a catalogue, or fair value estimation will be different.

The total value contributions for each new knowledge contribution (creative process), is so big as big is the Distribution range of the same value contribution, means how many Value Centers acquired it, through a validated value transaction.

Company total Value obtained from the generated Intangible Value transactions is dependent on the number of “buyers- value centers”, per transacted value, or “DISTRIBUTION RANGE”, for each “transacted Intangible Asset”.

Distribution Range is the keyword.

The process of creation, the new knowledge in a company, responds to an intuition, a necessity, or demand, or to an optimisation need, for an existing process, but the created-knowledge, must be linked to the Value Creation strategy of the Firm, and be recognised like a value added, to the Intangible part of the Company.

The link between the created Intangible Asset and Company Value creation Strategy is assured by the transactions - value negotiation – chained, necessary to assure the rolling of the Intangible Asset to Company Market Value.

All Intangible Value transactions are based on the Principe of an active Market, no hierarchy, independent decisions based on offer-demand on the traded assets.

The new created knowledge Intangible Value must be pushed to the Market, once identified like Asset, and validated the link to Market-Value. In order to obtain this rapid Roll – to- Market of the Intangible Asset, we need in most of the cases convert it in to the product, or service that we use to sell, and the associated services around them.

In this multiple conversion cycles, the Intangibles will convert in different Values types: Knowledge, Competence, Partnership, and different Intangible Productions types: Sold, Given-away, Competitive Advantage.

Like an example, let’s take the Production Given-away, that mean to make a service or a product that you make-like- a present, or social contribution, environmental contribution, volunteer mission. These kind of Value contributions are paying-back into a long cycle based on community ethical Values.

Circular Economy can be one example, where the value contributions to the knowledge “how to do“ , will at the beginning be in tremendous different company activity domains. Re-building the business model, the Given-away Intangible Value Center will be incorporated in the Company neural network, and in the Intangible Values Balance.

But next step, Durability Intangible Value Center, will be active, and send sufficient contributions, for all the circular production Intangible Value Centers, so the total value-balance, will be positive in the Financial Reporting.

Durability, measured in “durability coins” converted later in monetary units, can be reported in IAS, FASB. The road, from the knowledge “how to do” to the Financial Report monetary units, is a continuum Value Flow and conversion cycles, from knowledge to competence, to products, to services, and back to more knowledge and more competence better action and better products and services.

So, the number of Intangibles “value transactions”, from the first- created asset, to Market Value, is a performance indicator.

Source -to- Market transactions is a keyword.

Based on the Intangible Value keywords: Speed, Distribution Range, and Source-to-Market, plus the thousand’s basics Intangible Assets Accounting Values, or from the Value Centers Accounts, we can create solid reporting indicators based on facts, auditable, measurable values.

Digital Platforms Technology is KEY

In the past we couldn’t have a practical, feasible solution to keep track on millions of “ Intangible Value transactions” based on thousands of Intangible Assets, which must be identified, linked to the Market Company Value, valuated based on IAS, FASB, and all of this documented for audit purpose.

Our days the Multi-Functional Smart Platform can achieve all these attributes

Now is time to make Knowledge visible, auditable, measurable.

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