Andriessen contends that using IC models that classify capital into generic forms that are applicable to all organizations, makes all organizations look the same and hence, does not enable strategic planning based on the unique and different combinations of IC that a particular organization has.

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According to the IC model, to create value from managing IC, it is essential to transfer individual knowledge, or human capital, into organizational knowledge and practices (i.e., structural capital) that can then be passed on to customers in the form of new products and services.

The most popular model, called the IC model, classifies IC into human, customer, and structural capital. Human capital includes employee competency, skills, brainpower, and tacit knowledge.

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Most organizations have adapted or transformed their management styles and business models to manage intellectual capital (IC) and respond to the IC-enabled dynamics of the knowledge economy. Many of these organizations have done it without even realizing that they are adopting an intellectual capit

Business growth in the knowledge economy has been characterized by exponential growth in the service sector/industry; proliferation in the rate of mergers, acquisitions, and strategic alliances; and the rise of the start-up business model.

Idea banks, intranets, networking, and brainstorming sessions became part of the modus operandi of businesses in most industries today. It is the infrastructure brought about by the knowledge economy. Those organizations that did not have such an infrastructure were pushed to change. Xerox.

According to Brian Arthur of the Santa Fe Institute, it is an economy of increasing rather than diminishing returns. Once a product is adopted as the market standard, the cost of reproduction and production of new versions becomes minimal while the profits multiply.

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