Archive for December, 2015

Intangible Assets Business Lexicon

December 30th, 2015. Published under Intangible asset training for management teams., Intangible Asset Value. No Comments.

Michael D. Moberly   December 30, 2015   ‘A business blog where attention span really matters’.

An oft cited reference about contemporary American labor and today’s increasingly consumer driven-dependent economics is that fewer among us are employed in positions where we actually make-produce something in its entirety. While there are obvious truisms to this perspective, it’s essential to acknowledge most of us do contribute to product-service completion and outcomes but, through individual, collective, and/or collaborative inputs of our intellectual, creative, relationship and structural capital, i.e., the foundational IA’s (intangible assets)!

There has indeed been a shift in the origins of organization value, income (revenue), creativity, and competitiveness, etc., from milieus of physical – tangible assets to interwoven and collaborative bundles of non-physical, IA’s. To be sure, for IA intensive and dependant businesses, it is no longer a foregone conclusion that those with the most buildings, the biggest machines, and the most employees will win! Similarly, higher percentages of organizations today would be hard pressed to validate any perception they still function exclusively on the inertia of past – pre-IA era practices.

The ascension of IA’s in business value and output commenced in the late 1990’s as the knowledge – know how era with its foundation of intellectual, structural, relationship, and creative capital were becoming irreversibly evident. In other words, IA’s were increasingly integral to business operability and there was no foreseeable ‘bubble’ to the knowledge era. Competitiveness, efficiency, and profitability were descriptive terms rapidly being associated the growing number of businesses that legitimately are IA reliant and dependent.

During this time, two extraordinarily influential and parallel research projects were underway, i.e., New York University’s, Intangibles Research Project and The Brookings Institutions’ Task Force on Intangibles (Unseen Wealth). Both projects were similarly focused on unraveling confirmatory evidence that organization value, sources of revenue, and competitiveness were indeed originating in non-physical (intangible) assets at such a rapid pace they (IA’s) were usurping the conventional dominance of physical (tangible) assets as the exclusive underwriter to business profitability and sustainability.

Also, confirming and often preceding research conducted-published by UK and EU (European Union) universities and institutions made substantial contributions to bringing IA’s into the vestibule of business lexicon. Initial estimates at the time were that 50+/-% of organization value and sources of revenue derived from IA’s.

Mr. Moberly is an intangible asset strategist and risk specialist and author of ‘Safeguarding Intangible Assets’ published by Elsevier in 2014.

Engaging Organization’s Intangible Assets Brings Returns…

December 28th, 2015. Published under Fiduciary Responsibility, Intangible asset focused company culture., Intangible asset strategy. No Comments.

Michael D. Moberly   December 28, 2015   ‘A business blog where attention span really matters’.

I began researching, publishing, conducting seminars, and consulting 20+ years ago on an array of issues related to identifying, assessing, monetizing-utilizing, and mitigating risks to organization’s IA’s (intangible assets). Throughout this period I have had the good fortune of consistently engaging phenomenal decision makers, a percentage of which at first blush anyway, express satisfaction in assuming their organization functions very nicely thank you, as is, even though their operating practices are clearly rooted in the pre-IA era. In other words, they exhibit little overt interest in the change, possibly disruption, they assume would accompany engaging their IA’s.

Those otherwise successful business decision makers – leaders convey dismissive indifference-un-curiosity about capturing and exploiting IA value, i.e., as sources of revenue, competitive advantage, and sustainability. Ironically, much of which is already present – embedded in organization operating culture, merely awaiting exploitation. Fortunately, I find only the most intractable few will sustain such dismissive positions following my engaging them in a respectful discussion, or, learn a key competitor’s advances are attributed to utilizing their IA’s.

I realize in some instances, the dismissiveness – reluctance a decision maker may be exhibiting insofar as engaging their IA’s is rooted in unfamiliarity and/or concern that doing so…

  • may exceed their leadership and decision making comfort zone.
  • may be too (organizationally, culturally) disruptive, costly, and time consuming.
  • necessitates more clarity regarding organizational benefits, i.e., competitiveness and returns.
  • will be interpreted as being futile because IA’s are seldom, if ever, reported on conventional balance sheets or financial statements.

For the reluctant, it’s worthy to note again, it is an irreversible economic fact today that 80+% of most organizations value, sources of revenue, competitiveness, and sustainability lie in – evolve directly from IA’s. Organization decision makers are therefore respectfully encouraged to not merely acknowledge their intangible assets, rather commence an effective strategy for their utilization and exploitation. (Readers may find other posts helpful.)

Mr. Moberly is an intangible asset strategist and risk specialist and author of ‘Safeguarding Intangible Assets’ published by Elsevier in 2014.

St. Louis’ Commute Time Is An Intangible Asset!

December 26th, 2015. Published under Investing in intangible assets., Measuring Performance, Value Propositions. No Comments.

Michael D. Moberly   December 26, 2015 – ‘A business blog where attention span really matters’!

Any decision maker today, on behalf of their business or organization is obliged to recognize IA’s (intangible assets) are just that, they are indeed intangible, i.e., intellectual, structural, competitive, and relationship capital. The individual and/or collaborative ways IA’s contribute to value, revenue, and competitiveness when effectively captured (exploited and utilized) are non-physical, thus not amenable to many of the conventional (human) senses.

It is here, I wish to convey an example which emerged earlier this week through a locally produced NPR (National Public Radio) program wherein a panel of city marketing specialists discussed findings of a recent study that measured, compared, and contrasted specific categories of what I refer to as ‘competitive economics’ among comparably sized U.S. cities, one of which of course is St. Louis. One aspect of this study calculated ‘average daily commute times’ (to-from work) among the respective cities.

This panel touted lower average commute times for St. Louis as constituting as an attractive – enticing differentiator to prospective companies and their labor force. Interestingly, the panelists articulated ‘commute time’, somewhat mistakenly in my view, in a tangible (physical) asset context. To be sure commute times are important, for some, more than others when narrowly conveyed in minutes of actual – daily windshield time.

One’s commute time is an intangible (asset), because it is quite personal, i.e., relative to each driver-passenger in an auto, bus, or light rail, and dependent on the presence-absence of countless variables which variously affect one’s perspective of specific commutes of which few can be (tangibly) mitigated aside from experience and familiarity with a locale, and inclination/willingness to execute alternatives. Otherwise, ‘average commute times’ are, in my view, akin to presumptive aspirations.

The point I wish to make here may be interpreted by some as being superfluous minutia which has little or no relevance to commute times. Oh, but it does! Any business management teams’ inability to distinguish tangible (physical) assets from intangible (non-physical) assets and dismissing – trivializing the latter’s contributory role and value is a sure path to missed opportunities.

Mr. Moberly is an intangible asset strategist and risk specialist and author of ‘Safeguarding Intangible Assets’ published by Elsevier in 2014.

Intangible Assets Eureka Moments…

December 22nd, 2015. Published under Managing intangible assets, Value Propositions. No Comments.

Michael D. Moberly   December 22, 2015  Where attention span really matters’ IA’s (intangible assets) have obviously become irreversibly permanent fixtures – components to most organization’s economics, i.e., their primary sources of value, revenue, and competitive advantage, etc.

And, interestingly, global (business) economies still remain in the earliest of stages, relatively speaking, of the underlying knowledge (IA) era. Through my lens anyway, as an IA strategist and risk specialist, this leaves organizations and their management teams fully obliged to push most conventional (tangible asset) thinking, strategy, and practice about where, when, and how their value, competitiveness, and revenue originate and/or evolve aside and genuinely engage – undertake initiatives intended to achieve the important and necessary eureka moment of ‘I get it’!

However, most organizations and their management teams, frequently gravitate to distinguishable ‘operating cultures’, i.e., the quantitative (tangible) vs. the qualitative (intangible). At that, it would indeed be a misinterpretation and miscalculation should any reader assume the intellectual and structural preparations for engaging an organization’s IA’s to be too disruptive to its culture and/or exceed managerial comfort zones to continue.

On the other hand this may prompt some organization management teams to ask; what type-level of thinking is necessary to effectively cross the chasm from the tangible to the intangible? Perhaps the appropriate response to that question lies in the professional irresponsibility to assume that chasm of IA thinking can be squeezed into bumper sticker ‘sloganisms’ to indulge a presumptively narrow attention span.

There is indeed a thought leader responsibility to assume that matters related to their organization’s IA’s, warrant articulate clarity to think – act differently about when, where, how, and the circumstances which organizational value, competitive advantage, and revenue originate, develop, and convert. An intent of course is to present organizational leadership with relevant and respectful insight and perspective for…

  • recognizing how IA’s individually, collectively, and collaboratively contribute to value, competitiveness, and when addressed effectively favorably impact an organization’s community.
  • drawing attention to the various ways value – competitive advantage attaches and contributes.