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Information and Knowledge Management using ArcGIS ModelBuilder

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Ghassan Kbar<br />

Entering state of the projects<br />

New Ideas Proved Ideas Prototype Advance<br />

prototype<br />

6.7 m – 4 m = 5.36 m – 4 m + 4.69 m – 4 m 4.02 m – 4m +<br />

Science Park<br />

profit<br />

2.7 m<br />

0.3m = 1.66m<br />

Partner profit 3.3m-2m= 1.3m 2.64m-<br />

2m=0.64m<br />

Investment Partnership Calculation:<br />

+0.6m = 1.29 m<br />

2.31m-<br />

2m=0.31m<br />

0.9m = 0.92m<br />

1.98m-2m=-<br />

0.02m<br />

The partnership investment model includes the owner of IP, the investing partner, the funding partner,<br />

<strong>and</strong> the operational partner. At any stage of the investment, these 4 parties would share the value of<br />

the business which based on the invested capital or partners’ contributions, the current value of IP<br />

<strong>and</strong> the current value of the business. The proposed method provide fair distribution of benefit which<br />

preserve the right of involved parties <strong>and</strong> consequently attract partners to invest in developing new<br />

innovation <strong>and</strong> creating useful products. The development partnership model would be excellent for<br />

Incubation, <strong>and</strong> the investment partnership model would be excellent for Science Park.<br />

As shown in Table 3, the formula used for calculating the benefit of all partners in the investment<br />

partnership model is presented, Table 4 shows an example for sharing the profit generated from this<br />

investment, <strong>and</strong> Table 5 shows another example for sharing the loss generated from this investment.<br />

The following assumptions <strong>and</strong> formulas are used in the tables:<br />

I = Total expense of Investment (for the period of the projects) = value of IP + equip cost+<br />

operation cost<br />

Pi = Partnership Investment contribution = I/w<br />

Fi = Funder Investment contribution = I/F<br />

Ki = Science Park Investment contribution = I – I/w – I/F<br />

V i= current Value of Investment<br />

Initial Value of IP = V<br />

Current Value of IP =Vc =V+20% of (Vi-I)<br />

ROI =Return of Investment or Profit/Loss of Investment = Vi-I-Vc<br />

Partner share of Vi = [(1/w)*100]% of ROI = p of ROI<br />

Funder share of Vi = [(1/F)*100]% of ROI = q of ROI<br />

Science Park Share of Vi = [100-(1/w+1/F)*100]% of ROI = s of ROI<br />

Table 3: Sharing of investment partnership formula<br />

IP owner Science Park Partner Funder<br />

Investment cost<br />

percentage<br />

0 [1-(1/W+1/F)]% of I 1/W% of I 1/F% of I<br />

ROI percentage<br />

of parties<br />

V-Vc s of ROI p of ROI q of ROI<br />

In order to calculate the profit or loss at a particular time in the partnership investment model, there is<br />

a need to know the correct value of the project investment including the value of current IPs, the<br />

overall cost of the project <strong>and</strong> its current assets, <strong>and</strong> the market value of the product outcome, in<br />

addition to the indirect business value such as knowledge <strong>and</strong> employees experiences. The most<br />

challenging issue is related to accurate estimation of the current IPs <strong>and</strong> knowledge creation,<br />

whereas the estimation of current assets <strong>and</strong> product value would be easier. The estimation of<br />

knowledge <strong>and</strong> employees experiences is subjective <strong>and</strong> depends on how relevant these parameters<br />

to organizations or partner. Therefore, the current value of investment has to be calculated on a<br />

project basis, where the indirect benefit related to knowledge <strong>and</strong> experiences might vary from<br />

country to country, <strong>and</strong> from organizations to other. Example experiences <strong>and</strong> knowledge in<br />

development countries would be valued more than developed countries because of the relatively low<br />

st<strong>and</strong>ard education in these development countries.<br />

247

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