Michael D. Moberly July 7, 2008
At the recent (June 23d) Nationl Academies’ conference on Intangible Assets: Measuring and Enhancing Their Contribution to Corporate Value and Economic Growth one conferee described the difference between tangible and intangible assets as ‘if I can kick it, drop it, or stub my toe on it, then it’s a tangible asset’!
Intangible assets…
– are the economic benefits anchored – embedded in companies’ distinctive and often times proprietary processes, procedures or practices that set that company apart from its competitors by creating efficiencies, enhancing internal-external relationships or merely providing special edges in the market place. (Michael D. Moberly)
– can evolve overtime within a company and may not always the result of planned actions or capital allocations. (Brookings Institutions)
– are unique blends or combinations of procedures, assets, relationships, or culture that can be exploited to differentiate a company from its competitors and create more value. (Michael Porter)
– are unique knowledge a compay and its employees possess and the special value that comes with the understanding and ability how to use it best. (McKinsey)
Here are some real examples of intangible assets:
1. Internally developed software, customized data bases and/or business processes
2. Unique equipment designs that create efficiencies
3. Specially designed distibution systems and supply chains
4. Competitor-market research, focus group findings
5. Customer/client relationships and targeted communication systems
6. Real estate zoning-exploitation rights, permits, locations
7. Custom designed training materials, procedures
8. Domain names, venue naming rights
9. Distinctive website designs, customer accessibility, e-commerce capabilities
10. Corporate identity, image, goodwill, logos, product trade dress, and brand reputation
11. Contracts, agreements that have a definable life – exclusivity
12. Patents, copyrights, trade-service marks, prior art searches
13. Product R&D, studies and documentation (what works, what doesn’t)
14. Non-compete, non-disclosure (confidentiality) agreements (if transferrable)
15. Special employee expertise, technical know how, skill sets, and attitudes
16. Special licenses, subscription-royalty rights
17. Specific route utilization, franchise rights
18. Endorsements, spokesperson contracts
Remember, if an asset, intangible or othewise, adds value and is the source of revenue and future wealth creation to your company, measures must be taken to sustain (protect, preserve) that assets’ control, use, ownership and monitor its value!
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