Michael D. Moberly, Principal – Founder, kpstrat – ‘Business Intangible Asset Blog’
Far too often, a business’s ‘mission essential’ intangible assets, insofar as when-where-how much they favorably – repeatedly contribute to operating cultures which…
- conceive-build particular-products, services, ala brands, and
- render same attractive, competitive, and with the capability-capacity to generate revenue.
As I have experientially defined same for 2+ decades, a business’s ‘mission essential’ intangible assets emerge from various forms, contexts, and applications of…
- intellectual capital = thought, discussion, knowledge, planning, know how, expertise, strategy, and institutional memory.
- structural capital = known-to-work (tested – testable) business-product-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.
Unfortunately, business things intangible in general, and ‘mission essential’ in- particular, for various-reasons…
- are frequently overlooked, dismissed, un-or-under-valued, not safeguarded, nor risks mitigated, ala taken-for-granted without acknowledgement or differentiation.
- seldom appear on conventional management – investment radar, e.g., strategic planning, buy-sell-license transactions, risk management, and valuation, etc.
Yet today, it is, and for the foreseeable-future, will remain, a business economic truth and operation reality that…
- 70-80+/-% of most businesses valuation – competitive advantage – revenue generation capability-capacity, and sustainability (irrespective of sector, stage of maturation, annual revenues, or location, etc.) derive directly from intangible assets.
More specifically, businesses, across sectors are increasingly – irreversibly dependent – reliant on introducing and applying the right intangibles assets (individually, collectively, collaboratively) at the right time, in the right place, at the right cost, and have the foresight + means to do so repeatedly as becomes necessary, overtime.
Experientially, in practice, and @ ‘Business Intangible Asset Blog, I encourage business leaders, management teams, boards, and investors, et al, to deem it prudent, perhaps an obligation, to seek greater (operational) familiarity with business things intangible they have developed – hold, and differentiate those which are deemed ‘mission essential’, inasmuch they…
- are routinely – inevitably in play and at risk, and
- represent objective predictors of – contributors to valuation, revenue generation capability-capacity, resilience, competitive advantage, and sustainability.
If-when left un-recognized – under-appreciated, developers – holders of ‘mission essential’ intangible assets are, in today’s increasingly aggressive and predatorially anonymous business innovation – differentiation – selling environments, exposing those – their assets’ contributory role – value-add ‘life cycle’ to premature abbreviation.
Sporadic, or the absence of, relevant oversight, stewardship, safeguards, and risk mitigation applied to-for ‘mission essential’ business things intangible can, and unfortunately routinely does, adversely influence assets’ vulnerability – receptivity to arrays of risk which can…
- materialize asymmetrically @ keystroke speed to, among other things, stifle business-innovation-marketing momentum,
- undermine brand authenticity and valuation, and
- indeterminately disrupt business operations, requiring significant outlays of cash + time to defend, mediate, and recoup, if possible.
