Michael D. Moberly – Copyright 2019
Intangible Assets – variations of intellectual, structural, and relationship capital
For starters, business leadership are obliged to recognize this irreversible, irrefutable economic fact…
- for most businesses, today, and for the foreseeable future, 80+% of their value, sources of revenue, competitive advantages, brand, and sustainability (globally) lie in – emerge directly from intangible assets, primarily variations of intellectual, structural, and relationship capital.
It’s probable you may not have had the opportunity yet…to take a meeting with a professional who exclusively engages in all things intangible. If so, perhaps it’s time you extend an invitation to this voice, on behalf of your business. Too be sure, it would be my pleasure to accept…
Intangible assets are…
1…unique blends of knowledge and know how that intersect to support specific (often proprietary) methodologies, processes, best practices, and information sharing infrastructures. (Adapted by Michael D. Moberly from the experienced work of Weston Anson, CONSOR)
2…interwoven – embedded processes, procedure, relationships, and differentiators, ala an operating culture, synchronized to reflect market demands-conditions to create value, generate revenue, and build-sustain competitive advantages. (Adapted by Michael D. Moberly from the fine work of Michael Porter, Harvard Business School)
3…at the center of business innovation, they come at the beginning, as ideas, at the middle, as processes, and at the end, as commercialization and distribution channels. (Adapted by Michael D. Moberly from the many years of excellent work of Dr. Baruch Lev, NYU, Stearns School of Economics)
4…often naturally emerge and embed in organizational behaviors and management practices as intellectual, structural, and relationship capital, however…
- a businesses intangible assets may lie idle, undeveloped, unexploited, and at risk, awaiting leadership’s recognition, assessment, development, monetization – exploitation, and application of safeguards.
- as preludes to adding value, generating sources of revenue, competitive advantages, and enhancing brand, reputation, and sustainability.
- Michael D. Moberly m.moberly@kpstrat.com (St. Louis)
It is useful to examine the following categories-types of intangible assets…in contexts deemed leaders – readers find most relevant to…
- your company as the originator, developer, user, and owner.
- the various circumstances and/or transactions in which intangible assets can – will be in play.
- how the assets can be exploited to create sources of revenue, competitive advantage, and add value, and
- how, why, when, and the circumstances in which particular intangible assets are at risk to economic – competitive advantage adversaries, devaluation, infringement, and/or misappropriation
- warranting risk mitigation and safeguards, or other that adversely influences assets’ materiality or contributory role.
Intangible assets are…
1. Technology-Software – generally, internally developed and proprietary; examples include copyrights, databases, source codes, and enterprise-custom applications, etc…
2. Marketing – examples include musical jingles (lyrics) promotional-marketing characters, devices, photographs, video, newsletters, advertising concepts, and focus group analyses, etc….
3. Engineering – designs of new equipment and the technical know how…
4. Customer-Client communications – mailing lists, data bases, retrieval systems, specialized distribution channels, 1-800 numbers, ala relationship capital…
5. Competitive Research – actionable business intelligence ala plans, intentions, capabilities…
6. Real Estate – zoning, construction permits, air, water, mineral (land) exploration-exploitation rights, right-of-way, easements, and building (expansion) plans-rights…
7. Training – manuals describing distinctive operations, processes, and procedures, etc…
8. Website – domain names, logos, design, e-commerce capabilities, weblinks, distinctive customer-client accessibility and use…
9. Product – Service…
- trade dress, i.e., shapes, color schemes, packaging design, and graphics
- warranties.
- open purchase orders, order and/or product back log…
10. Company-Business Identity – trade names, trademarks, and logos, etc., which are distinctive, intended to differentiate, are ownable, and may be registered…
11. Contracts-Agreements – any contract that has a definable life span and some form of exclusivity, i.e.,
- supply, media, performance, pricing, licensing, royalties, advertising.
- construction, management, services, leases.
- broadcast-operating rights, licenses.
- specific route utilization.
- franchise agreements.
- subscription rights.
- futures contracts.
- co-branding agreements including endorsements, spokesperson contracts, venue naming rights, etc.
12. Intellectual Property – patents, copyrights, trademarks, trade secrets, trade name, service marks, mastheads, logo design, prior art search, flanker patents, patent applications, foreign patents, use-performance rights, reprints…
13. R&D – product (pro-con) research studies, findings, formulas, processes, and assembly data, and status with relevant regulatory agency…
14. Communication – cable – terrestrial transmission rights, FCC licenses, certifications, bandwidth, etc…
15. Human Resources – wage rates, employee (union) contracts, non-compete and non-disclosure agreements (if-when transferrable)…
16. Structural Capital – specific (business) structures and processes developed-deployed internally and intended to increase productivity and performance, method patents, etc…
17. Human Capital – totality of employee specialties, i.e.,
- skills, abilities, competencies, documented technical know how documentation.
- lab notebooks, manuals, formulas, processes, recipes.
- attitude, morale.
These examples were gleaned from Mr. Moberly’s professional experiences, in addition to adaptations from…
- ‘The Intangible Asset Handbook: Maximizing Value From Intangible Assets’ authored by Weston Anson, and
- ‘Untangling Intangibles’ authored by Tamara Plakalo.
