Using System Dynamics ILEs in service business interventions to support Intellectual Capital Planning

Modelling knowledge in SD organisational interventions may become a puzzling task because of difficulties in achieving a common shared view among business key-actors about the impact of Intellectual Capital (IC) investments on future company performance. Such difficulties are not only related to the intangible nature of IC, but also to the indirect role of knowledge in affecting performance drivers and outcomes. This phenomenon is particularly relevant in service businesses, where intangibles account for a high percentage of total assets. In order to overcome such problems, a conceptual framework has been developed by the authors to build a generic SD model aimed to support business decision makers in IC planning, with particular regard to service firms. Such model has provided the basis for developing two ILEs focused on a telecom mobile service provider and an insurance company. The first application was related to an education project, while the second one was linked to a consulting assignment. The use of a conceptual framework as a basis to build an ILE has proved to be a successful strategy in order to better communicate business key-actors the potential of SD in modelling and assessing IC policies. Main key-issues underlying model development and the ILEs ’ application are discussed in the paper, and most significant outcomes from simulations are commented