If you build a better mouse trap (tangible asset), as the saying goes, the world will beat a path to your doorstep…in the knowledge (intangible asset) based economy however, such time honored clichés has given way to the economic fact that companies are fiduciarily obliged to build smarter paths to utilize-exploit their intellectual, structural, and relationship capital ala knowhow. Doing so is the prelude to value, revenue sources, and sustainable competitive advantages.
Below are key strategic knowledge paths…for company management teams and boards to consider insofar as identifying, unraveling, assessing, exploiting, and ultimately utilizing intangible (knowledge-based) assets to build and sustain value, create sources of revenue and competitive advantages:
- Learn how to identify, unravel, and assess each of the intangibles a company produces, possesses, and/or acquires. Avoid being dismissive or under-estimating the contributory value of intangible assets.
- Be alert to subtle, under-the-‘mba’-radar contributions intangibles make to particular processes and procedures that enhance company brand, reputation, customer/client relationships, and create efficiencies, etc.
Also, ensure management team and board agendas consistently…identify and assess any unrecognized or under-utilized (knowledge-based) intangibles by…
- ensuring the assets are effectively shared-disseminated company-wide with the mandate to explore ways to utilize combine them with existing intangibles to enhance, exploit other products, services and/or create efficiencies, etc.
- recognizing how intangible assets are consistent and important underliers to business transactions, strategic alliances, and mergers and acquisitions, etc.
- exploring opportunities to license, buy, sell, trade, or engage in other profitable practices in which intangibles are in play. https://kpstrat.com/wp-admin/post.php?post=5990&action=edit&rp4wp_parent=1108
There is also a need to take consistent and affirmative steps to…safeguard and monitor each asset’s status with respect to its fragility, sustainability, defensibility, materiality, value, and risk.
The above are particularly necessary – relevant to businesses intangible assets because…
- intangible assets are routinely embedded in existing business practices, products, and services, sometimes as proprietary elements.
- replication – imitation (ala infringement, misappropriation) of a company’s intangible assets can, absent effective safeguards and monitoring, be quick and irreversible and present adverse economic and competitive advantage consequences.
Michael D. Moberly January 23, 2012 St. Louis ‘Business Intangible Asset Blog’ where attention span and business realities intersect.
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