Methodology For Assessing IA’s Contributory Value To Companies!

December 30th, 2016. Published under Intangible Asset Value. No Comments.

Michael D. Moberly   December 31, 2016    ‘A business blog where attention span really matters’!

The methodology I developed to assess the contributory role and value of IA’s (intangible assets) is designed to influence – guide clients toward recognizing how-ways in which IA’s underwrite their company’s-businesses value, serve as starting points for generating revenue, competitiveness, and future wealth creation.  This methodology commences by identifying-examining, among other things…

  • centers or clusters of standalone, under-utilized, under-valued, or under-performing IA’s.
  • how or whether key IA’s are (collaboratively) effectively interwoven to favorably influence a particular project, initiative, or transaction.
  • how the IA’s collectively – collaboratively contribute to a company’s overall IA intensity and dependency.
  • the compatibility of its IA’s with the company’s mission (statement), strategic planning, and its cultural – structural capital.
  • the prevalence and speed which particular risks, threats, vulnerabilities, and liabilities manifest to adversely affect any-all IA’s in play.
  • evidence of IA losses, compromises, materiality changes, and presence of current and/or horizontal risks.
  • projected returns from its IA’s and contributions to the company’s competitive position within its market-sector.
  • IA’s contributions to producing synergies, efficiencies for the company.
  • how-ways which IA’s contribute to executing (new) market entry planning.
  • evidence of IA’s contribution to enterprise wide (IA intelligent) company culture.
  • how-ways which IA’s are incorporated into business continuity/contingency (organizational resilience) planning.
  • life, value, functionality, and risk cycles of IA’s in play.

Regardless of the venue which clients-companies prefer for the delivery of IA advisory services, I consistently draw their attention to this ‘contributory value’ process.  In large part, that’s because I believe this methodology reveals far more than conventional snap-shot-in-time portraits of IA assessment.  IA’s contributory value is the asset’s assessed relationship, connection, collaboration with other IA’s within a company.  After all, today, and for the foreseeable future, only 20+/-% of the stock price of S&P companies is explainable via conventional balance sheet – financial statement (book value).

The contributory value methodology framed above is executed with the view…

  • that IA’s can exist as standalone or integrated clusters-bundles of intellectual, structural, relationship capital, and
  • how those IA’s contribute to (current, future) projects, products, services, ventures, R&D, efficiencies, materiality, competitive advantages, and/or revenue streams, including foundations (or, building blocks) for company’s future wealth creation and sustainability.

The rationale for encouraging IA assessments – valuations be conducted using this ‘contributory value’ approach is to…

  • provide business leadership with the frequently overlooked aspects about the integral role IA’s play in a company or transaction.
  • develop descriptive paths (roadmaps) for company IA values, and materiality to be readily recognized, monitored, measured, safeguarded, and ultimately preserved, i.e., banked.
  • provide business leadership with much needed and practical insight to optimize IA’s in timely (bottom line) relevance.

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