Archive for 'Intangibles as strategic assets'

Circular Economy and Intangible Assets

March 13th, 2017. Published under Intangibles as strategic assets, Looking Forward, Value Propositions. No Comments.

Michael D. Moberly March 13, 2017 ‘A business blog where attention span really matters’.

When introducing – executing a new business concept, leadership and management teams exhibiting an initial interest, in this instance, to a ‘circular economy’, may also be inclined to recognize obstacles to implementation. One being, of course, converting the new concepts’ principles to practicality, functionality, and return-on-investment.

As for implementing a ‘circular economy’, in the absence of a fully integrated and supportive (circular) ecosystem, obstacles abound. Admittedly, obstacles-impediments, cynical or otherwise, can manifest on multiple levels, e.g., actually applying ‘circularity’ to each facet of their company in terms of product (tangible-physical asset) development, acquisition, production, renovation, and destruction.

On the other hand, through my admittedly, IA (intangible asset) influenced lens, the concept of ‘circularity’ produces a natural relevance for articulating the contributory role and value of IA’s (intangible assets) to a company and/or business vis-a-vis the globally universal economic fact that 80+% of most company’s value, sources of revenue, competitiveness, and sustainability lie in – derive directly from IA’s.

By design, a circular economy (macro) is restorative and regenerative insofar as keeping products, components, and materials, i.e., both tangible and intangible assets, at their highest utility and value throughout their respective value – functionality life cycle. Obviously, restructuring entire economies to become (more) ‘circular’ would, with little, or no challenge, deliver significant environmental benefits. Too, proponents of a circular economy encourage companies to seek ways for retaining more of the value of the materials (tangible asset inputs), energy, and labor (intangible asset inputs) that go into their products. (This was adapted by Michael D. Moberly from the work of McKinsey alumnus Markus Zils.)

Interestingly, the EU (European Union) is characterized as being in the transformational midst of a ‘circular economy’ influenced by numerous actions, one being ‘Cradle to Cradle’ which represents a cross-sectoral socio-economic system which is absent (convential) linearally-based economic principles. Instead, a ‘circular economy’ relies on concepts-princples whose primary purpose is to wholly correct what are characterized as the ‘unfixable errors embedded in linear (economic) systems’. During EU’s period of transformation (to a circular economy) business leadership and management teams are obliged to develop strategies that lead to its ultimate application, among them being, continuing to design high-quality products, but include – address…

• the use of renewable energy and effective water management.
• social equity.

Real innovation and effectiveness, ala application of a circular economy, will, proponents note, lead to increases in (people) prosperity and liveability in Europe. (This was adapted by Michael D. Moberly from the work of Michael Braungart, Academic Chair “Cradle to Cradle for Innovation and Quality” RSM, Erasmus University Rotterdam; Scientific Director, EPEA)

A ‘circular economy’, as it is branded, is comprised of multiple (leadership, management) components, among them being…

• genuinely understanding, conceptually and practically, what sustainability is, its near term relevance, and accompanying mindsets and actions necessary to achieve (sustainability) across industry sectors and environments.

• learning about and from the naturally occuring elements and their individual characteristics, i.e., resources, materials, and products, etc., associated with – embedded in the development and execution of particular processes and/or functions.

• thinking, acting, and executing in contexts of…
– systems and feedback loops between, let’s say, the resources and
methodologies necessary for producing a specific product reflect durable
sustainability.
– recognizing when, where, and how ‘waste’ occurs-exists (within
particular environments), and
– creating distinct circularity (loops) between the biological and
technical materials used within a particular environment.
– ensuring product design methodologies and resources are thoroughly
embedded with (wholly) renewabable (recyclable) and/or repurposed
component

As reported in its ‘Care To Share’ blog, Royal Haskoning DHV (an independent international engineering and project management consultancy, headquartered in Amersfoort, Netherlands) rightfully gives credit to The Ellen MacArthur Foundation (UK) for bringing the ‘circular economy’ concept to the forefront and projecting it globally, through among other venues, their 2012 report titled ‘Towards the Circular Economy’.

Posts in Royal Haskoning DHV’s blog, note the ‘circular economy’ has, at least, some of its roots in earlier sustainability concepts and schools of thought, which include, Industrial Ecology (1989), Biomimicry (1997) and Cradle to Cradle (2002). Each variously include the idea of nature serving as a model to address environmental pollution and continuous growth of consumption.

So, what, in my view, is new-novel about the prospects of a ‘circular economy’ with emphasis on IA’s, is its direct linkage to business operational realities and economies wherein rising percentages of most businesses-companies value, sources of revenue, competitiveness, and wealth creation potential lie in – derive directly the ‘circularity’ applied to the development, utilization, exploitation, safeguarding, and restoration of intangible, as well as, tangible assets.

I genuinely believe there is much enlightened merit embedded in the principles of a ‘circular economy’. Be assured however, those principles are not merely millenialized verses for expressing the importance of, and necessity for, businesses to engage in advanced (material, resource) recycling initiatives. Yes, I have little doubt that executing the principles of ‘circularity’ can move companies – businesses away from the ‘circularity’ of wasteful application-use of resources to more sustainable (reusable) products and materials, because doing so, paves the way for maintaining product-brand value.

A reality embedded in a ‘circular economy’ is that success is wholly dependent on (requires) cross-sector – cross-value chain collaboration. This is the circular economy’s single greatest challenge, which at minimum will require not merely a verbal commitment, rather a mandate to execute. For those reasons, I elected to miniaturize the principles and application of ‘circular economy’ to apply to a company’s IA’s, independently. My rationale is that most company’s IA’s do not function exclusively in a linear fashion. Instead, in most circumstances, IA’s are contributory, that is, they can contribute to multiple products’ value, competitiveness, brand, etc., simultaneously. In other words, it’s certainly practical and lucrative for company leadership and management teams to recognize how their various IA’s function internally, in a circular fashion.

Intangible Asset Global Shift

February 10th, 2017. Published under Fiduciary Responsibility, Intangible asset training for management teams., Intangibles as strategic assets. No Comments.

Michael D. Moberly February, 10, 2017 A business blog where attention span really matters!

Indeed, country economies have rapidly entered and connected to an era irreversibly intertwined, at all levels and functions, in which IA’s (intangible assets) are the overwhelmingly dominant ‘players and actors’ as sources of revenue, value, competitive advantage, and sustainability, all of which I believe, we are in the early stages.

This translates as most companies and businesses, irrespective of sector, are, whether recognized or not, have shifted economically away from reliance on – applications of tangible-physical assets to being irreversibly attached to – dominated by intangible – non-physical assets. In other words, the IA era which influenced growing percentages of business – company leadership and management teams to engage their IA’s (functionally, operationally, competitively, and monetarily), some for the first time, is now indeed, for many, a permanent component to c-suite agenda’s.

That is not to suggest dependence – reliance on (conventional) tangible – physical assets has been completely eliminated to the point of absence. Instead, it means business leadership are variously (fiduciarily) obliged to recognize that business competitiveness, value, and revenue generation, etc., require IA inputs to achieve desired outcomes.

Starting in the mid-to-late 1990’s, I had the good fortune, and perhaps good sense, while faculty engaged in security-asset protection studies at Southern Illinois University, to read-study early products (chapters) of a multi-year project undertaken by The Brookings Institution titled ‘Understanding Intangible Sources of Value’. The principle investigators-authors of the project, several of whom I engaged at the time in discussion for clarity and insight, were a strong troupe of forward looking-thinking professionals. Most, to my recollection, were not exclusively schooled in economics per se, but never-the-less, experienced and respected practitioners who clearly understood the impending prominence – dependence on IA’s. For me, that Brookings’ project remains a very insightful treatise, certainly equal to the fine work on IA’s developed-produced at prominent institutions in the UK and Sweden.

To be sure, IA’s, still prompts some debate in certain quarters, debate that is less about the existence and presence of IA’s, and their contributory role and value they consistently play in business operability, innovation, and transactions, etc., and more about how to report IA’s relative to convention and profession specific standards, practices, and statutes.

Arguably, the IA ‘sea change’ for business, grew out of various consternations that conventional financial statements and balance sheets largely dominated by ‘tangible assets’ and to the exclusion or, at the very least, minimization of IA’s. Among the key arguments of IA proponents, aspects of which remain today, is that continued adherence to conventional asset reporting and accounting, (that essentially excludes IA’s) is insufficient, insofar as painting a complete and accurate portrait of a company’s financial wealth, health, potential, and competitive standing. This argument is all-the-more-relevant now, given the economic fact that substantial percentages (80+%) of most company’s value, revenue, and competitive advantage derived directly from IA’s.

Intangible Assets As Sources of Value, A Global Shift For Business!

December 30th, 2016. Published under Intangible asset training for management teams., Intangible Asset Value, Intangibles as strategic assets. No Comments.

Michael D. Moberly    December 30, 2016     ‘A business blog where attention span really matters’!

In the mid-to-late 1990’s, I had the good fortune and perhaps good sense, while faculty engaged in security-asset protection studies at Southern Illinois University, to read-study early products of a multi-year project undertaken by The Brookings Institution titled ‘Understanding Intangible Sources of Value’. This project was authored by a strong troupe of subject matter experts. In my judgment, ‘Understanding Intangibles’ remains a very insightful and illuminating treatise equal to the fine work on IA’s (intangible assets) developed-produced at prominent UK and Swedish institutions.

Then, as well as now, ‘Understanding Intangibles’ prompted debate and signaled change, away from tangible – physical assets to non-physical, intangible assets as the foundations to most company’s value and sources of revenue.  In no small part, this change grew out of recognition that conventional financial statements and balance sheets, with their traditional reporting-accounting of tangible assets, to the exclusion of IA’s (intangible assets), no longer captured – painted an inclusive portrait of company’s actual financial wealth or health.  That’s because growing percentages of companies globally, were engaging and benefitting from the ‘knowledge-technology era’ (which large segments of the world were immersed at the time).  This era was largely spear-headed by the infinite depth, breadth, and range of IA’s, broadly categorized as being comprised of intellectual, structural, and relationship capital.

From the ‘knowledge-technology era’  emerged a shift to – dominance of IA’s, and perhaps, not so coincidentally, influenced further sophistication, influence, and growth of the…

  • transformation of entire industry sectors, i.e., transportation, financial services, and telecommunications, etc., from regional and national, to global entities.
  • development and integration of new technologies and companion (efficient) work processes.
  • accessibility to globally coordinated and instantaneous (air, sea, land, and rail) supply and product-service distribution chains.
  • the ability for new companies to enter markets – industry sectors and secure rapid returns and competitive advantages by the prudent investment, acquisition, development, and monetization of strategic IA’s.
  • aggressive and predatorial market-sector entry tactics practiced on a global scale by ‘legacy free’ players and countries.

Collectively, these and other simultaneously occurring phenomenon intensified a global business investment and transaction environment, in which IA’s are consistently in play.  Similarly and inevitably, certain parallel demands on companies would surface. That is, businesses seeking strategically sustainable tracts would be obliged to be continually engaged in innovation, ala IA’s, as one requisite to remaining relevant, competitive, and financially sound coupled with the necessity to develop and introduce new products, services, create efficiencies, and add-on’s through increasingly higher levels (quality) of IA inputs.

Of the numerous positive-lucrative outcomes to this phenomenon, one is that business innovation, competitiveness, value, revenue, profitability, and sustainability were being acknowledged by the forward looking-thinking business leaders as injecting and commoditizing targeted and relevant IA’s, particularly intellectual, structural, relationship, and creative capital at the right place, at the right time!

A second positive-lucrative outcome to this phenomenon was that IA’s were being universally recognized as primary conduits-foundations to business innovation, competitiveness, value-adds, and creating new sources of revenue. The realities, pressures, and intensity of global competition continued to pivot on IA’s. Spearheading companies that were already (effectively, efficiently, successfully) engaging their IA’s, as well as those businesses on strategic paths to do so, would, in all likelihood, remain operationally sustainable, competitive, and profitable.

Importantly, investments in the development and utilization of relevant and innovative IA’s would provide resonate clarity to the economic fact – business operation reality that 80+% of most company’s value, sources of revenue, and ‘building blocks’ for growth, sustainability, and future wealth creation were being fueled, almost exclusively, by business decisions rooted in enhanced awareness and appreciation for the contributory role and value of IA’s.

The prominent work of Baruch Lev (NYU, Stearn School of Economics) in the IA arena cannot be understated as being a consistent and forward looking-thinking contributor.

To be sure, his work continues to impact-influence the intangibles community which, in many respects, I believe, is encapsulated in his remark…’if intangibles are so risky, their benefits so difficult to measure and secure, and their liquidity (tradability) so low, how did they become the most valuable assets most companies possess’?

Intangible Assets As Business Multipliers

July 25th, 2016. Published under Intangibles as strategic assets, Managing intangible assets, Organizational resilience and business continuity/conti. No Comments.

Michael D. Moberly July 25, 2016 ‘A business blog where attention span really matters’!

The word ‘multiplier’, as I have observed its application, has been primarily in military – combat contexts as force multipliers. Observation and strike capable drones for example, are force multipliers because of the operational – observational advantages they provide to various military units needing real time intelligence and possibly offensive action.

However, on the business side, as an IA (intangible asset) strategist and risk specialist, I consider a company’s IA’s as representing a distinctive form/context of business multipliers. Throughout the private sector, IA’s, originate in – arise from valuable intellectual, structural, relationship, and competitive capital or, IA’s.

Preferably, business c-suites and their management teams recognize how IA’s translate, convert, or monetize as competitive tactics, processes, and/or commodities to (collectively – collaboratively) ‘multiply’ – contribute to the effectiveness, efficiency, output, revenue, and/or value of a particular operating group, project, or process.

Either way, when IA’s are acknowledged and effectively integrated in a particular initiative, project, or even organization-wide, they can, and frequently do, favorably impact efficiency, effectiveness, and productivity, which translates as value, sources of revenue, and competitiveness, that otherwise may not have been acknowledged. That’s particularly evident in business environments in which there is little or no receptivity to IA’s either in terms of their usefulness, accounting, internal development, external acquisition, or maturation – conversion often due to a misperception that doing so would disrupt the status quo or create new risk.

IA-based multipliers, also refer to attributes or combinations of competitive inputs which again, often manifest most favorably when collectively-collaboratively drawn from existing intellectual, structural, relationship, and competitive capital. A general example where this has occurred is the package delivery sector as most firms recognized the obvious efficiencies which could accrue by integrating – coordinating both GPS (global positioning) and RFID (radio frequency identification) technologies which converted to growth in value, competitive advantage, and revenue generation capability. Standing alone, both GPS and RFID are tangible-physical assets (technologies), but the intellectual, relationship, structural, and competitive capital which together recognized – linked their application to the global package delivery sector should not be dismissed.

In this instance, GPS and RFID deliverables largely manifest as contributory and competitive IA’s that facilitate-enable the package delivery sector to receive, process, sort, and deliver substantially more orders and packages more efficiently compared to competitors that have yet to incorporate those multipliers.

For those operationally familiar with IA’s, i.e., their origins, development, and integration, in most instances, can (and should) also be leveraged – exploited as, among other things, value proposition multipliers, which in turn, confer credibility and rationale to capital outlays to pursue, purchase, and integrate the multipliers, ala GPS and RFID systems, while recognizing the various IA’s such multipliers produce and strengthen.

So, as more operational clarity is brought to IA’s contributory role and value as multipliers, organization c-suites, boards, and management teams will recognize – materialize as…
• expansions of operational prerogatives and boundaries that correlate with IA development, utilization, and
exploitation.
• decision – transaction outcomes becoming more predictable and lucrative whenever, however, and wherever,
IA’s are in play.
• the necessity for OR (organizational resilience) planning to facilitate quicker and more complete economic-
competitive advantage recovery following a significant business disruption or materialization of reputation
risk, etc.

Political Convention Intangibles

July 19th, 2016. Published under Intangible asset focused company culture., Intangibles as strategic assets, Uncategorized. No Comments.

Michael D. Moberly July 19, 2016 ‘A blog where attention span really matters’!

At what point do well orchestrated and choreographed vignettes at national political conventions manifest as assurances of voter perceptions?

Both political conventions, Republican this week, Democrat the following week, will, through focused grouped and timely social engineering techniques seek to deliver attractive intangible caricatures of their respective party’s presidential candidate.

It is fascinating to observe another national political convention dominated by technically enhanced-choreographed visuals and adulterated words that collectively, could correctly be characterized as an enormous 4-day long intangible. Whereby, a national political conventions’ primary objective is to affirm candidates’ presumptive (so-called) brand, image, persona, and bona fides for office. And, execute it in such a way to implant appealing perceptions (intangibles) intended to attract undecideds, appeal to opponents’ supporters, and perhaps, bring clarity to candidates’ positions on matters they and their advisors deem are of import to the American people, all-the-while endeavoring to further distinguish themselves from their opponent.

If this sounds eerily like an infinitely looped version of a ‘super bowl’ halftime commercial, you may be right.

In politics, intangibles can be personal achievements, character, and oratory, etc., that translate as understandable and distinguishable assets which candidates and/or PAC’s can exploit at will, ala affixing (licensing) the name ‘Trump’ as an intangible to the very tangible steak, wine, golf resort, hotel, or building.

Professional Service Firms’ Intangible Asset Deliverables A Lucrative Game Change Strategy!

May 11th, 2016. Published under Intangible asset training for management teams., Intangibles as strategic assets, Law Firms. No Comments.

Michael D. Moberly May 11, 2016 A blog where attention span really matters!

Expand deliverables to include intangible assets. Create new sources of sustainable revenue, enhance firm value, reputation, and competitiveness. Rationale…

• It is an irreversible economic fact that…80+% of most company’s value, revenue, competitiveness, and sustainability today lie in – evolve directly from IA’s developed internally or acquired externally.

• In every business activity, initiative, and/or transaction…valuable – competitive IA’s will be in play and at risk.

• Delivery of professional services are legitimately premised…on client companies, management teams, and boards recognizing their fiduciary responsibility, arising from Stone v Ritter, to ask…

…is their company properly positioned, insofar as possessing the expertise and skill sets, to identify, unravel, develop, bundle, utilize, and extract – exploit as much value and competitive advantage as possible from its IA’s, while simultaneously safeguarding and monitoring risks to those assets’, which, if materialized, are all but certain to adversely affect the assets’ materiality, contributory value, competitive advantage, and sources of sustainable revenue.

• Intangible asset identification…assessment, exploitation, and risk mitigation are integral to client company’s economics, competitive advantages, and (global) commercial success.

• Acquiring sufficient operational familiarity…of IA’s to design, market, and deliver client specific services are now fundamental requisites to professional service firm’s strategic planning, expansion, sustainability, and revenue generation.

• Each professional service firm deliverable…is obliged to recognize strategies to exploit – apply client companies unique knowhow, particularly where there is clear IA intensity and dependency held in intellectual, relationship, structural, and creative capital.

• Its imprudent for professional service firms to characterize…client company’s IA’s are mere addendums (subordinate) to conventional IP (intellectual property).

• Operational familiarity with IA’s are legitimate entrées for professional service firms to…re-engage existing clients and engage new – prospective clients…

• Professional service firms that frame their services to encompass IA identification, stewardship, management, and stewardship can expect 15+% growth…in billable client services in year one following effective marketing and delivery.

Intangible Assets, Rationale Meets Reality

April 12th, 2016. Published under Intangible Asset Value, Intangibles as strategic assets, Managing intangible assets. No Comments.

Michael D. Moberly April 12, 2016 ‘A blog where attention span really matters’!

It is an economic fact that the primary sources of company value, revenue, and competitiveness, etc., began noticeably shifting in the mid-to-late 1990’s.…
• from tangible (physical) assets, e.g., property, equipment, inventory, etc.,
• to intangible (non-physical) assets, e.g., reputation, brand, and goodwill        particularly.

This recognition coincided with the descriptive transformational expression ‘knowledge-based economies’ wherein learned economists calculated 80+% of most company’s value, sources of revenue, competitive advantage, and ‘building blocks’ for growth, profitability, and sustainability now lie in – evolve directly from organizations intellectual, relationship, structural, and competitive capital as well as other forms – manifestations of IA’s

My work is a culmination of 25+ years of professional consulting, university teaching, continuous research, public speaking, and publishing on matters variously related to IA’s and their intellectual property cousin. My consulting engagements, media appearances, and research in the IA arena have largely focused on…
• identifying, assessing, safeguarding, and mitigating risk.
• conducting transaction due diligence when IA’s are in play, which they consistently are, and
• facilitating company cultures prudently linked to operational familiarity with IA’s contributory role and value.

The centerpieces of my work, writing, and consulting today lie in IA advocacy, i.e.,
• value-revenue-competitive advantage capabilities of IA’s.
• identifying, unraveling, and assessing IA’s contributory and collaborative value roles for companies.
• recognizing IA’s life, value, and functionality life cycle.
• aligning IA risk assessments with transaction due diligence.

Today, profitable business operations and transactions are increasingly dependent on management team’s ability to effectively and consistently foster, harness, utilize, and convert its IA’s into relevant forms of value, revenue, competitive advantage, and sustainability.

But, knowhow, i.e., intellectual, structural, relationship, and competitive capital (IA’s) can deliver economic and competitive advantages only if/when the developer-holder of those assets can sustain their control, use, and ownership, and monitor their value and materiality throughout their respective value – functionality cycle.

 

 

Intangible Asset Inventory – Valuation

April 8th, 2016. Published under Intangible asset strategy, Intangible asset valuation., Intangibles as strategic assets. No Comments.

Michael D. Moberly April 7, 2016 ‘A blog where attention span really matters’!

“If it can’t be measured, it can’t be managed”, an adage widely attributed to Peter Drucker, that, in my view, carries a different kind of relevance today than when it was initially uttered. That’s because, it is an economic fact that, 80+% of most company’s – organization’s value, sources of revenue, competitiveness, growth, and sustainability derive from IA’s. That’s one thing the naysayers and the cynics of IA’s cannot refute. Whereas, when Drucker uttered this still very substantive phrase, the economies were hardly global, and the assets used to produce goods and services were overwhelmingly tangible, with little interest paid to IA’s.

Still, there are various types of professional services, accounting being one, which are driven by statutes, standards, and guidelines where there is little tolerance – leeway for all things intangible, therefore…

• question the objectivity – validity of IA valuations.
• object to broadening – expanding what constitute IA’s.
• remain firmly committed to conventional asset valuation practices.

Still, prudent and forward looking-thinking management teams and business decisions makers would be hard pressed to describe another time in company/organization governance history when achieving operational familiarity with and measuring and managing the value of knowledge-based assets, the intangible’s, is more necessary.

By identifying a company’s key IA’s, and consistently monitoring – assessing their value and risk, company/organization management teams can be positioned to recognize, in a timely manner…
– erosion – undermining of asset value and competitive advantages through
misappropriation, infringement, counterfeiting, and mismanagement.
– changes in asset materiality and/or asset obsolescence.

When undertaking an IA valuation, it must encompass much more than being a mere snap-shot-in-time. That’s not to imply IA valuations are resource – labor intensive processes. Instead, prudent management teams are obliged to have continual asset assessment-valuation procedures and processes in place, commencing with very keen sensitivity-awareness to an array of internal and/or marketspace circumstances that can influence asset value, competitiveness, and the emergence of risk, which should it materialize, will affect assets’ stability, defensibility, and fragility. Anyone of which, if ignored/neglected can be a prelude to an organization’s IA’s contributory value being undermined, stifled, or worse, irreversibly going to zero!

Consistent monitoring and measuring the contributory/collaborative role and value of key IA deliverables, permits companies, strategic planners, and management teams to be more responsive to…

– utilizing – exploiting their IA’s.
– meeting the ever expanding fiduciary responsibilities associated with IA’s.
– strengthening, managing, sustaining IA value and competitiveness.
– allocating – directing asset safeguard resources more efficiently and
effectively commensurate with an assets’ life, contributory value, and
functionality cycle.
– addressing the inevitable challenges, disputes, and external targeting
engaged in by competitive adversaries.

Marketing Security Emphasize Intangible Assets

January 26th, 2016. Published under Intangible asset strategy, Intangible asset training for management teams., Intangibles as strategic assets. No Comments.

 Michael D. Moberly   January 26, 2016   ‘A business blog  where attention span really matters’!

I have been consistently engaged on the peripheries of developing, marketing, and selling various security products, systems, and services for 25+ years. I find it somewhat remarkable that so many well intentioned and variously successful practitioners employed in this sector do not appear to have developed or legitimately integrated in their ‘pitch’ narratives exploitable IA (intangible asset) derivatives produced by their security products, systems, and services

After all, it is a universal economic fact that 80+% of most clients and prospective client companies’ value, sources of revenue, competitiveness, profitability, growth, and sustainability lie in – evolve directly from IA’s, a percentage of which derive – are attributable to security products, services, and/or systems deployed in their environments.

It’s worth noting intangible assets are…

  • …unique knowhow a company (its employees) possess, and the special value that comes from understanding how, when, and under what circumstances to apply it best. (McKinsey & Company)
  • …the economic and competitive advantages and benefits embedded in companies’ IC (intellectual capital), i.e., knowhow, experience, etc., and its SC (structural capital), i.e., processes, procedures, and practices that set the products and/or services it produces and delivers apart from its competitors. (Michael D. Moberly)
  • … distinctive and/or unique blends of business activities, processes, know how, and customer/client relationships that companies can exploit to differentiate themselves and create value. (Michael Porter, Harvard Business School)

One, of several consistent observations of 25+ years of conversing with many hundreds of personnel at all levels in the marketing and sales of security related products is a noticeable absence of recognizing the persuasive influence of weaving and leveraging lucrative IA-rooted benefits and competitive advantages that routinely emerge from the deployment of security.

To be sure, the oft used tactic/technique of peppering pitches with FUD factors, i.e., fear, uncertainty, and doubt, to convey the immediacy of a risk/threat or exploit – extrapolate a recent adverse event to a prospective clients’ circumstance, while relevant in some instances, should, in my view, no longer be the dominant feature to any pitch.

Instead, it’s obligatory now that security products with respect to how they are marketed and ‘pitched’ reflect the irreversible and paradigm shifting economic fact that 80+% of most organizations value, sources of revenue, competitiveness, profitability, growth, and sustainability lie 0 evolve directly from IA’s. This means management teams particularly, achieve operational familiarity with their IA’s to recognize when, where, how, what, and why security products geared toward safeguarding and/or mitigating risks to its IA’s is so essential and ignoring – dismissing same is all but assured to become a substantial vulnerability with debilitating consequences.

Again, the rationale for incorporating security product marketing-sales language that specifically emphasize safeguarding prospective client’s IA’s represents forward thinking – looking attributes language very relevant to today’s global business environments which are increasingly intangible asset intensive and dependant.

Mr. Moberly is an intangible asset strategist and risk specialist and author of ‘Safeguarding Intangible Assets’ published by Elsevier in 2014, m.moberly@kpstrat.com View Mr. Moberly’s videos on YouTube at ‘safeguarding intangible assets’ or his CNN and CNBC videos at his webpage http://kpstrat.com

Intangible Asset Multipliers

January 22nd, 2016. Published under Intangibles as strategic assets, Mergers and Acquisitions. No Comments.

Michael D. Moberly   January 22, 2016 ‘A business blog where attention span really matters’!

The word ‘multiplier’ as I observe it being frequently applied in both business and military contexts, requires some clarity. As an intangible asset strategist, I am inclined, for better or worse, to characterize ‘multipliers’ as often originating in distinctive/competitive knowhow and/or thinking.  Preferably, management teams will recognize how these IA’s (intangible assets) are translatable – convertible into tactics or processes which measurably ‘multiply’ effectiveness, efficiency, and/or output of say, a particular operating group, specific project, or process.

More specifically, through my lens, multipliers also refer to attributes or combinations of competitive inputs often collaboratively rooted (originate) in intellectual, structural, and relationship capital, i.e., IA’s. Collectively – collaboratively these multipliers are purposefully integrated in a particular initiative, project, or even organization-wide to favorably impact efficiency, effectiveness, and/or productivity, that otherwise may not have been feasible, particularly in environments in which there is little or no receptivity for multiplier(s) to evolve, mature, become recognized or integrated due to perceived concern that doing so would disrupt the status quo or create new risk.

One example where this has occurred is the consumer package delivery sector, several of which recognized obvious gains which could accrue by integrating – coordinating both GPS and RFID technologies. Standing alone, GPS and RFID are clearly tangible-physical (asset) technologies. However, their deliverables largely manifest as contributory and competitive IA’s that facilitate-enable firms in this sector to receive, process, sort, and deliver substantially more orders and packages, more efficiently compared to competitors that have yet to incorporate same.

For those operationally familiar with IA’s, i.e., their origins, development, and integration, in most instances, can (and should) also be leveraged – exploited as, among other things, value proposition multipliers, which in turn, confer credibility and rationale to capital outlays to pursue, purchase, and integrate the multipliers, ala GPS and RFID systems, while recognizing the various IA’s such multipliers produce and/or strengthen.

So, as more operational clarity is brought to IA’s contributory role and value as multipliers, organization boards and management teams will recognize…

  • their operational prerogatives will expand to correlate with IA development, utilization, and exploitation.
  • decision – transaction outcomes can be more predictable and lucrative whenever, however, and wherever, IA’s are in play.
  • the importance of effective OR (organizational resilience) planning to facilitate quicker and more complete economic-competitive advantage recovery following a significant business disruption or materialization of reputation risk, etc.

Mr. Moberly is an intangible asset strategist and risk specialist and author of ‘Safeguarding Intangible Assets’ published by Elsevier in 2014, m.moberly@kpstrat.com View Mr. Moberly’s videos on YouTube at ‘safeguarding intangible assets’ or his CNN and CNBC videos at his webpage http://kpstrat.com