Archive for 'Intangible asset mapping.'
Michael D. Moberly February 21, 2017 A business intangible asset blog where attention span really matters!
During several engagements, I observed clients becoming frustrated with some (conventional) methodologies for valuing their IA’s. With the intent to mitigate such distractions, I set about developing a respectfully informative basis upon which IA’s could be distinguished and values (i.e., role, worth, materiality) assigned which I refer to the ‘contributory value’ methodology. This methodology allows IA’s contributory value (role, worth, materiality, etc.) to be distinguished relative to a business, a specific project, research, and/or a transaction.
The ‘contributory value’ methodology itself, is not quantitative, in the conventional sense. That is, there is no (one-size-fits-all) mathematical equation or formula used here to calculate and ultimately assign dollar value (ranges) to IA’s. Instead, this methodology demonstrates – reveals graphically, how, where, when, and which IA’s affect (business) value, competitiveness, and revenue, and therefore, deliver – possess ‘contributory value’.
The distinctive simplicity of the contributory value methodology is very relevant to circumstances other than transactions in which IA’s are being bought, sold, transferred, licensed, etc. For example, conducting a contributory value assessment for a business-company, provides leaders and management teams with practical and strategic insights about how, where, when, and which IA’s are being applied (effectively, efficiently) and if – how they affect value, competitiveness, and revenue as well as lucrative strategies for amending the current situation.
The ‘contributory value’ methodology, applied in this context, also reveals (and unravels) far more about a business’s (IA) operational and financial state than conventional, standalone, snap-shots-in-time methods that do not wholly address IA’s relationship – connection, and contribution to other assets. Desirably, the ‘contributory value’ methodology brings clarity to IA valuation by emphasizing the interactive-collaborative relationship and connectivity to (other) IA’s.
My primary rationale for developing the ‘contributory value’ methodology is that it serve as a respectful segue to clients, unfamiliar with IA’s, to better understand and differentiate the how’s, the when’s, the where’s, and the way’s, which the IA’s they and their business produces, possesses, and uses (individually, collectively, collaboratively) affect and/or translate to value.
Too, the ‘contributory value’ approach, through its graphically descriptive content renders IA ‘contributions’ more recognizable, measurable, monitorable, and predictive, insofar as…
• their compatibility with a company’s mission, strategic planning, and operating culture, etc.
• the rapidity and repetitiveness which specific risks manifest to adversely affect any-all IA’s in play.
• evidence of IA compromise, materiality change, and/or value-competitive advantage erosion or dilution.
• executing new product development, launches, and market entry.
• their incorporation into business continuity/contingency (organizational resilience) planning.
• recognizing IA’s life, value, and functionality cycles.
• a means to kick start enterprise-wide IA intelligent culture.
Another equally valid reason for companies to apply the ‘contributory value’ methodology (product) is that, for the foreseeable future, only 20+/-% of the stock price of S&P firms, is explainable solely by the content of conventional balance sheets – financial statements, ala ‘book value’. (Adapted by Michael D. Moberly from the excellent work of Dr. Nir Kossovsky, CEO, Steel City Re)
Michael D. Moberly January 25, 2016 ‘A business blog where attention span really matters’!
I consider myself an IA (intangible asset) strategist and risk specialist. As such, the impact of introducing a new programmatic – listener relationship initiative to a public radio station can be gauged (economically, competitively, etc.) by a process, which I call ‘IA mapping’.
Forward looking-thinking public radio leadership who have acquired an operational familiarity with IA’s are likely to be already engaged in the fundamentals of IA mapping. That is, they recognize there are two equal levels of programmatic ‘first responders’, which in most instances, run parallel to – are complimentary to one another, for example
- generalist and specialist reporters, their producers, and (in house) on-air deliverers that contextualize, articulate, and deliver issues of the day as they arise.
- external relationship builders who transform ‘issues of the day’ into distinctive (personalized) venues that engage a station’s ‘communities of listeners’.
It is these ‘first responders’ who will likely recognize and distinguish the IA’s, i.e., intellectual, structural, relationship, and competitive capital, etc., that should be drawn upon to optimize ‘issues of the day’ for the station’s ‘communities of listeners’ through the various communication platforms which are available.
With regularity, IA’s have become the centerpiece to organizations’ value proposition, which again, manifest through ‘IA mapping’, e.g.,
- inventories of an organization’s IA’s that…
- reveal when, where, and how intangibles originate, develop and attach to particular initiatives internally.
- whose presence and status sustains for the duration of their life-value functionality cycle.
- provide timely awareness about any changes in and/or risks to asset materiality, contributory role-value, and impact.
- statements of deliverable ‘value adds’ (benefits) that public radio’s communities of listeners, contributors, and sponsors can expect, will experience, and will use.
- strategies to distinguish, assess, and monitor a public radio station’s IA’s that are in play and applied to particular initiatives, alliances, and other journalistic undertakings intended to impact ‘communities of listeners’.
- reaches substantially farther than conventional snap-shot-in-time confirmations that a particular IA is present, in development, or being applied.
- a conduit to facilitate the rapid movement of IA deliverables to impacting communities of listeners, i.e., specific benefits and returns that respectfully address an unmet or perhaps not fully realized need.
- a timely method to channel where, how, and when IA resources should be directed to reflect how issues of the day are articulated and delivered as they arise.
IA mapping is also meaningful way for IA intensive and dependent organizations like public radio, to sustain their strategically competitive position, e.g., by recognizing…
- which type – category of IA should be acquired, developed, and
- when, where, and how to resource, bundle, and utilize IA inputs with the necessary intellectual, structural, relationship, and competitive/creative capital.
- the necessity to monitor IA materiality cycle, contributory role, value, and risk, and
- the importance of mitigating probabilities that IA’s will become vulnerable-attractive to adverse and frequently irreversible cascading effects associated with asset theft, misappropriation, reputation risk and/or contesting asset origin and ownership.
Mr. Moberly is an intangible asset strategist and risk specialist and author of ‘Safeguarding Intangible Assets’ published by Elsevier in 2014, firstname.lastname@example.org View Mr. Moberly’s videos on YouTube at ‘safeguarding intangible assets’ or his CNN and CNBC videos at his webpage http://kpstrat.com