Magic Model

Measuring Intellectual Capital

Summary of the Magic Model. Abstract

Books

Edvinsson, Corporate Longitude

Kaplan, Norton, The Strategy- Focused Organization

Standfield, Intangible Management

Lev, Intangibles: Management, Measurement, and Reporting

Smith, Valuation of Intellectual Property and Intangible Assets

MAGIC (Measuring and Accounting Intellectual Capital) is a European research and development project partly funded by the European Commission. The goal of the project was to develop a methodology and measurement system for Intellectual Capital.

The methodology for measuring Intellectual Capital as defined in the MAGIC project can be divided into four categories:

Human Capital comprises all the skills, expertise and competencies of the company to react on market demands and customer needs including leadership and management issues and capabilities.
Organizational Capital comprises the capabilities of a company, its infrastructure and organizational processes to produce products and services to the market.
Market Capital represents the capabilities of a company to interact with the external interface like the customer, partners, and suppliers and other stakeholders.
Innovation Capital refers to a company's ability to innovate , improve and develop unutilized potential as well as generate long-term wealth.

Compare also: Organizational Learning | IC Rating | Balanced Scorecard | Intangible Assets Monitor

More valuation methodologies

Magic Model

Measuring Intellectual Capital

Summary of the Magic Model. Abstract

Books

Category