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432 Chapter 13

Dow credits Petrash ’ s actions for saving more than $1 million in patent maintenance
fees within the fi rst eighteen months. Petrash estimates that in addition to an esti-
mated $50 million in tax savings, Dow increased its annual licensing and patent
revenue to $125 million in the year 2000. In effect, Dow expects to reap a benefi t of
$175 million dollars by better managing its most obvious intellectual assets.
The Skandia Navigator (Edvinsson and Malone 1997) makes use of four types of
dimensions:
Financial focus Gross premium income, insurance result
Customer focus Satisfi ed customer index, customer loyalty, market share
Human focus Number of employees, average age, empowerment index
Process focus Operating expense ratio, premium income/salesperson, net claims ratio
In addition, renewal and development is assessed in terms of training expense, employ-
ees, and sales-oriented operations. In all, twenty-one indicators are used to measure
IC with nine indicators used to measure effi ciency of use of IC.
At Buckman Labs, the following metrics are used:

• Percentage of company effectively engaged with customer (target = 80 percent).
• Percentage of revenues invested in knowledge transfer system.
• Number of college graduates.
• Sales of new products less than fi ve years old as a percentage of total sales.
The World Bank emphasizes the creation of knowledge, public expenditure on
education relative to GNP, and public expenditure on education absolute. They also
look at the assimilation of knowledge through such metrics as:

• Gross enrollment rate
• Secondary education
• Tertiary education
• Literacy — newspaper readership
• Adult literacy rate
• Mean years of schooling
Finally, at the CIBC, three major dimensions are taken into consideration:
human capital consisting of the skills individuals need to meet customer demands,
structural capital consisting of the information required to understand specifi c markets,
and customer capital which consists of essential data about the bank ’ s customer
base.