Michael D. Moberly, Principal, Founder, kpstrat
We’re well into the 21st century and the various contributory roles of and value produced by ‘business things intangible’ is widely recognized and heralded at the 5000 ft. elevations, less so at operational elevations. Unfortunate as that is…
It’s now an indisputable economic fact – busines operating reality that 80+% of most business’s (a.) value, (b.) sources of revenue, and (c.) competitiveness, etc., is irreversibly embedded in – arises from intangible (non- physical) assets, etc., less so in tangible (physical) assets.
- To the point, business operations are intangible asset intensive and dependent, full stop!
A broad (legitimate) question that I routinely ponder (in this regard) is…why the appearance of reluctance-hesitancy, even resistance, to operationally recognize and engage business things intangible consistently? Experientially, there is not a single, clear reason applicable across-the-board.
- Sure, one may attach blame to higher ed and/or professional development and training, etc., for insufficiencies and/or short sightedness insofar as preparing MBA’s, etc., for the current and irreversible intangible asset dominant business development, innovation, and transaction environments across sectors.
- I argue responsibility, if it is that, lies also with conventional business institutions and practices having to do with matters related to intellectual property law, business valuation, and taxation which variously remain ‘stuck’ in conventions where tangible – physical assets were previously dominant.
- Business intangible assets manifesting as various forms of intellectual, structural, and relationship capital inputs, seldom fit neatly into those convention laden outputs, ala brand, reputation, wealth creation potential, resilience, competitiveness, and sustainability.
Today, business operability (sustainability + resilience) produce various urgencies. In no small part sense of urgency is driven by business operation realities which routinely travel @ keystroke speeds + asymmetric (business) risks which also travel + cascade @ keystroke speeds.
Hence, monitoring – assessing which business things intangible are inevitably at risk + their vulnerability, probability, and criticality = irreversible and mission essential practicalities for business competitiveness, resilience, and sustainability.
Absent this recognition for each aspect ofbusiness development, transaction, and operation which are (obviously + irreversibly intangible asset intensive + dependent, leadership beyond conventions, will likely (unfortunately, probably needlessly) struggle.
Respectfully written for your review.