An Algorithm for Measuring Intellectual Capital of a University

Abstract

With the current complexity of commercial activities and developmental business environment, the survival of any organization depends mostly on innovation, introduction of new products, and increase in value processes based on modern technology. Every organization is made of both tangible assets and intangible assets. However, the focus has always been on the tangible assets, paying little or no attention to the intangible asset (intellectual capital). However, it has been discovered that, in order to effectively and efficiently measure the success and value of any organization, company, or school, it is paramount to measure the intellectual capital of that organization. This project models and captures the intangible assets of university system using a mathematical model developed. The developed mathematical model was used to capture the intellectual capital of a university. The results obtained and analysis of the result were presented. The three components of intellectual capital considered are human capital, customer capital, and structural capital. The model was implemented in C# programming language. The results obtained show an increase in market value of the University considered by 80% due to the incorporation of intellectual capital.

Keywords: Intellectual Capital (IC), Human Capital (HC), Customer Capital (CC)