Michael D. Moberly, Principal, Founder, kpstrat
Every business which I am familiar, develops and produces versions – variations of intangible assets, i.e., intellectual, structural, and relationship capital. How, or whether a business conveys – exploits their intangible assets is another story.
In most instances, a business’s intangible assets (a.) emerge from timely inputs of intellectual, structural, and relationship capital, and (b.) converge (preferably, collaboratively) as business operating processes and cultures which (c.) can (if–when same are recognized and executed prudently, deliver value, competitiveness, revenue generating capacity, goodwill, and brand, etc.
Generally, a business’s intangible assets are developed internally, or they may be acquired externally. Either way, when intangibles are appropriately applied, they can convert to benefit a business as-a-whole and/or a particular operation within a business.
Business intangible assets exist in various forms, contexts, and applications, generally from inputs – contributions of intellectual, structural, and/or relationship capital that render a business’s products and/or services more attractive, efficient, effective = competitive and valuable in the eyes of current + prospective customers.
Each intangible asset input – contribution in my judgement can be subject to valuation insofar as their contributory role and value to a business, e.g., what, how, where, and when contributions are made to a product, service, or process, etc., to
- favorably influence a business’s revenue and value, competitiveness, brand-reputation, and sustainability, etc.
Two things are ‘mission essential’ to recognize relative to valuing intangible assets…
- Every business which I am familiar possesses and variously relies on valuable + competitive intangible assets.
- Business leaders are obliged to distinguish ‘inputs and contributions’ of their intangible assets.
The value of a business’s intangible assets lies in objectively describing how, where, and when each intangible assets input collaboratively converges, converts, and contributes to serve as a favorable (lucrative, competitive, sustainable) business practice and operating culture.