Michael D. Moberly, Principal, Founder kpstrat and ‘Business Intangible Asset Blog – Business Intangible Asset Strategies and Risk Mitigator
Today, and going forward, the stewardship, oversight, and management of business’s intangible assets, should not be-considered a passive, elective, or sedentary responsibility, rather a (fiduciary) obligation.
Instead, when a business’s intangible assets have been differentiated operationally and culturally as ‘mission essential’, this routinely translates to recognizing…
- when, where, how, and why they are relevant and contribute to business operations, undertakings, initiatives, new product – service launches, and/or negotiating buy-sell transactions, etc.
Depending on how – why a business’s intangible assets have been developed and applied by leadership, they can and routinely will (individually, collectively, collaboratively) produce – deliver advances to competitive advantage, valuation, revenue generation, brand, and reputation.
I discourage business leaders, management teams, boards, and investors from characterizing the management, monitoring, and mitigating risk to ‘mission essential’ intangible assets…
- as an imprecise, eccentric, or enigmatic (business) activity which can be-relegated – trusted to the unfamiliar or uninitiated, nor
- their relevance considered only if – when time permits, competitors are-observed doing it, or it materializes as a profession-specific standard.
A business’s ‘mission essential’ intangible assets emerge and materialize as various forms, contexts, and applications of the right…
- intellectual (knowledge, know how) capital.
- structural (process, procedure) capital,
- relationship (association) capital,
- introduced at the right time, in the right place, at the right cost, and
- converge as reliable, resilient, competitive, and efficient business ‘operating cultures’ irrespective of sector.
Today and for the foreseeable future, it is a business economic – operation reality that …
- 80+/-% of most companies – businesses valuation, sources of revenue, competitive advantage, and sustainability lie in – emerge directly from intangible (non-physical) assets.
The above translates as most businesses, irrespective of sector, size, maturation, product, or service are irreversibly intangible asset intensive, dependent, and reliant.
Experientially, I consider the following to representgood-better-best underliers to the management, stewardship, and oversight of a business’s (mission essential) intangible assets…
- examine – differentiate business processes, practices, and procedures through an intangible – non-physical asset lens (not tangible-physical asset lens).
- unravel – distinguish each assets’ origins, ownership, proprietary status, contributory roles + value adds to valuation, revenue generation, and competitive advantage.
- assess – mitigate risks to particular – assets, e.g., their vulnerability to, the probability of, and criticality, should particular – risks materialize.
- monitor, safeguard, defend, and preserve the assets contributory roles and value adds.
- introduce business specific practices – strategies to (a.) utilize – leverage – extract value and competitive advantage from those assets for the duration of their respective life-value-materiality cycle, and (b.) ensure how-when-where ‘mission essential’ assets are introduced + applied align with a business’s mission and strategic planning.
The ‘Business Intangible Asset Blog’ is experientially-researched, written, and produced by Michael D. Moberly, to provide perspectives, insights, and additional and sometimes alternative perspectives to readers, ala business leaders, management teams, boards, and investors, etc., to aid in identifying, distinguishing, assessing, valuing, safeguarding, and lucratively – competitively utilizing -applying their ‘mission essential’ intangible assets.
Readers are-encouraged to review and comment on this, and other posts wherein arrays of issues related to business things intangible are authentically and practically conveyed.