Michael D. Moberly, Principal – Founder, kpstrat – ‘Business Intangible Asset Blog’
A business’s intangible assets can, routinely do, and are obliged to be recognized and treated as (potential) ‘multipliers’ (ala, multiplier effects), insofar as their contributory roles and value-adds to…
- enhancing existing and/or creating new-additional competitive advantages, revenue generation capabilities-capacities, which translates as more attractive, lucrative, and sustainable operating cultures.
A business’s intangible assets, generally, and those differentiated – designated a ‘mission essential’, especially, emerge (good, better, best) from developing – applying various forms, contexts, and applications of…
- intellectual capital = thought, discussion, knowledge, planning, know how, expertise, strategy, and institutional memory.
- structural capital = known-to-work (testable- tested) business, product, and/or service specific processes, procedures, techniques, practices, and/or methodologies.
- relationship capital = associations, connections, affiliations, and rapport exhibited – conveyed by business leaders, management teams, boards, and investor…
I encourage the above converge – serve (individually, collectively, collaboratively), as contributors, differentiators, and value-adds to a business’s operating culture…
- where it can be ‘most useful’, e.g., recognizable – observable, distinguishable, monitorable, accountable, and measurable.
A business’s (mission essential) intangible assets and the various near term + strategic benefits those assets can, and routinely do, produce, represent multipliers to-for-in (a.) a business as-a-whole, and/or (b.) particular-products, services, offerings, and transactions.
Too, the various multipliers which materialize, will be evident and can be authentically – ethically articulated (for marketing purposes, etc.) as contributing to…
- elevating attractivity to – valuation of a business as-a-whole, a particular product, service, offering, transaction, etc., and/or a particular project, new product launch, or investment, etc., irrespective of sector.
- strengthening, perhaps expanding revenue generation capabilities – capacity.
- accentuating – differentiating a business’s competitive advantage, operating culture, and/or new offerings, services, products, or transactions, etc.
Experientially, seldom do, or will ‘intangible asset multipliers’ (outcomes) as described here, materialize spontaneously, absent purposeful familiarity with business things intangible + foresight of leaders, management teams, boards, and/or investors to develop, introduce, and apply…
- the right intangible assets, at the right time, in the right place, in the right way, at the right cost, and
- safeguard – mitigate risks to same, throughout the assets’ value-competitive advantage (life) cycle.
It’s important to note that each multiplier’s contributions and value-adds are measurable, monitorable, and receptive to ‘tweaking’ if necessary, e.g.,
- when-where-how-why, and to whom and/or what those assets are directed, e.g., influence – affect a business’s operating perspective, culture, valuation, and strategic planning, etc.
Of course, the importance of translating – converting the various ‘multipliers’ produced by particular-positive introductions – collaborations – applications of business things intangible, should not be overstated, nor under-estimated.
A guide to achieve this, flows from recognizing that today, and for the foreseeable future, 70-80+/-% of most businesses are (increasingly) reliant – dependent on be able to indeterminately use – apply particular-intangible assets to drive and sustain valuation, revenue generation, and competitive advantage.