Introducing intellectual potential – the case of Alfa Laval

Intellectual capital has gained increasing attention concerning both research and more practically oriented applications during the past five years. Intellectual Capital and other knowledge management tools are topics that have emerged in the light of a broader trend of redirecting the foundation of competitive advantage from the company's tangible assets to its intangibles such as knowledge base, brands and the content and structure of computer‐based systems. In this paper, the concept of intellectual potential is introduced. Intellectual potential is a further development of intellectual capital, using four principles: strategy basis; management orientation; process orientation; and context sensitivity. The concept is a tool for the strategic management of an organisation's intangible assets in order to increase its long‐term revenue‐generating capabilities. The case of Alfa Laval is used as an illustration of how intellectual potential can add value as a management tool.