It’s Your Intangible Assets, Stupid!

April 27th, 2017. Published under 'Safeguarding Intangible Assets', Business Transactions. No Comments.

Michael D. Moberly April 27, 2017 ‘A business intangible asset blog where attention span really matters’.

It should be clear by now that most companies-businesses are variously IA (intangible asset) intensive and dependent. That is, their value, functionality, competitiveness, revenue, and sustainability emanate through effective use and exploitation of the pillars of IA’s, i.e., intellectual, relationship, and structural capital. IA intensive and dependent businesses have irreversibly outpaced their tangible (physical) asset-dominated counterparts insofar as origins – producers of value, revenue, competitiveness, and sustainability.

In no small part today, these circumstances have contributed to two simultaneous and parallel business environments, which are not necessarily mutually exclusive…

• one, driven by hyper-competitive, higher risk, aggressive, predatorial, and winner-take-all approaches for negotiating – executing transactions and outcomes.

• a second, driven by recognizing lower risk, lucrative outcomes, and niche competitive advantages which can accrue by departing from convention, and instead, seek, negotiate, and execute opportunities for synergistic and lucrative collaborations which can be replicated.

In the latter circumstance, substantially more so than the former, IA’s will be recognized and in play, that is, they may be bought, sold, transferred, licensed, converged, shared, and otherwise collaboratively exploited at various points during-between their development and the end-product (service, system) which they are to play a contributory role.

However, any occasion in which a business management team – decision maker engages in a strategy of collaboration, strategic alliance, partnership, and/or a multi-company consortium, in which ultra-valuable and competitive IA’s are in play, is, in my judgment, hedging the transactions’ success on the assumption that the it can consummate execute, and deliver returns faster than the IA’s in play will be variously compromised, infringed, misappropriated, and/or counterfeited. Today, the sophistication, ‘keystroke speed’, and ‘always on’ state which globally predatorial and legacy free economic-competitive advantage adversaries function should not be overlooked or underestimated.

In sports parlance, those who assume a strategy whereby ‘they can develop and collaborate faster than…’, have accepted the perspective that ‘the best defense is a good offense’ approach. But, in high stakes, winner-take-all business transaction management environment in which the full array of valuable IA’s are routinely in play today, such a strategy is akin to ‘permissive neglect’. That is, it leaves control, use, ownership, value, and functionality of those assets unnecessarily vulnerable and at risk.

Any assumption that adverse economic and competitive advantage impacts stemming from business intelligence, data mining, and/or counterfeiting operations, can be offset or minimized by an ‘I can develop and collaborate faster than…’ strategy is respectfully operating at an unnecessary level – combination of short-sightedness, wishful thinking, and absence of fiduciary responsibility.

Reader comments, as always are invited and respectfully welcome!

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