Knowledge Management International Conference (KMICe) 2016, 29 – 30 August 2016, Chiang Mai, Thailand http://www.kmice.cms.net.my/ 87 Developing Knowledge Asset Valuation Model using Knowledge Experts Wong Man Wai, Ammuthavali Ramasamy, and Marini bt Othman Universiti Tenaga Nasional(UNITEN), Malaysia, calebmw@yahoo.com; {ammutha; marini}@uniten.edu.my ABSTRACT Knowledge assets which relate to an organization's core business can ensure its competitive edge in business competition by transforming knowledge into goods and services. However unlike physical asset, Knowledge Asset is intangible and there are inadequate techniques to measure the Knowledge Asset. The value of the Knowledge Assets varies, depending on human cognition and awareness which includes context sensing, personal memory and cognitive processes. The aim of this research is to interpret the value of the Knowledge Asset into a meaningful and tangible way. The objective is to develop a model that defines the value of Knowledge Assets. The research approach used is a qualitative single case research. The research has begun with a literature review, document study and interview for information gathering. The findings from the literature review reveals existing framework or model which applied to measure intangible asset. Whereas the document study reveals the factors that triggered event to create, review, update and dispose the Knowledge Asset. This information is used as a foundation to develop the conceptual model. Interviews were conducted and the model presented to the Knowledge Management manager and Knowledge Engineers to collect feedbacks about the conceptual model. As the result, the proposed model enables the Manager and Knowledge Engineers to use the identified factors to value the Knowledge Assets easily and interpret its value into more meaningful and tangible way. Keywords: Knowledge asset, Value of Information, Valuation model, Knowledge management I INTRODUCTION Organizations are transforming business model into knowledge based core competence because knowledge asset is essential in designing and performing business processes efficiently and effectively. It is vital to have knowledge asset for sustaining competitive advantage. But due to the nature of knowledge assets which are intangible and misconception that they are not important causing organizations to lose their valuable knowledge assets unintentionally. This may cause the organization to lose its productivity and creativity in business process which will lead to loss in competitive advantage. Knowledge assets are important as physical and financial assets. It allows organization to design and perform business processes efficiently and effectively. Also increases the possibility to create new products and services to enable a business to create its value. Organizations are aware that it is difficult to determine the actual value of knowledge assets in tangible way. How to determine the loss of the organization if their experience knowledgeable workers leave the company? What is the cost to discover, capture new knowledge and transfer to the employees? A framework that is able to interpret the values of knowledge assets into monetary term will help the organization to understand the importance of their knowledge assets in a tangible way, allow them to determine the essential knowledge which requires to support organization business process from time to time and manage knowledge assets more effectively. The paper is organised as follows. The Related work section defines Knowledge Assets in detail and several methods of measuring intangible assets are discussed. Methodology section describes data collection instruments and procedures. Analysis Section describes the result of analysis and interpretation of the collected information. Model Development Section proposed the model of this research based on result generated from Analysis Section. Conclusion contains concluding remarks. II RELATED WORK InvestorWords.com defines “Asset” as “Any item of economic value owned by an individual or corporation, especially which could be converted into cash.” This is including current assets (liquid cash), long-term assets (real estate, equipment), prepaid and deferred assets (insurance, interest), and intangible assets (trademarks, patents, copyrights, good will). Knowledge is intangible and varies towards human cognition and awareness. It is a combination of context sensing, personal memory and cognitive processes. To measure the Knowledge Asset also means to put value on people, both as entities and their collective capability (Skyrme, 1999). Unlike physical asset which has time span, Knowledge Assets existence can last forever. One good example