In a Marketplace Where Only 20% of Value Comes From The Tangibles, Smarter Companies Focus on the 80%, the Intangibles

1. Smarter-Companies
Value In The Social Era Comes from Intangibles
In a Marketplace Where Only
20% of Value Comes From The
Tangibles, Smarter Companies
Focus on the 80%, the
Intangibles

2. In The Old Days…..
Those That Had The Most
Tangible Assets Were The
Kings of Industry…

3. That
was
then

4. This
is
now

5. It’s a seismic shift
Agricultural Era  Industrial Era  Social Era

6. Understanding the shift
Industrial  Social Era
Tangible  Intangible Assets
Factory  Networks

7. Intangibles Fuel The Social Era
They influence:
1. How we organize
2. How we deliver value
3. How we sell and market
4. How we create economic value from our business
models
5. How we compete
6. How we view the value people bring to creating
value
7. And most of all how we think

8. Believing The Right Things..
smarter-companies – believe that the
path to prosperity and sustainable profit is
a new focus on what’s important in the
Social Era: leveraging intangible capital

9. Investments Follow Value..
http://www.conference-board.org/data/intangibles/

10. Where has the money gone?
…to build intangible assets:
• In technology • In designs,
• In people products
• In processes • In networks
• In brands

11. Investment created new value
“Intangible,”
off-balance
sheet portion of
corporate value
Source: Ocean Tomo

12. Shift happened economy-wide
Intangible Value as a % of Total Market Capitalization
by Sector
100%
90%
80%
70%
60%
1975
50%
2005
40%
30%
20%
10%
0%
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13. For now, holding at +/- 80%

14. This is about
the rise of a
new kind of
economic
asset in the
Social Era

15. What
is IC?

16. Human Capital
• People:
– Competencies
– Experience
– Loyalty
• Management
– Industry experience
– Systemic expertise
– Learning designs

17. Structural
Capital
• Processes/IT (the heart of modern business)
• Technology/IP
– Data, stored information and knowledge
– Own product/service designs and knowledge
– Intellectual property (patents, trademarks,
copyrights, trade secrets)
• Sales and marketing processes

18. Relationship
Capital
• Customers
• External partners (suppliers, outsourcing
partners, regulators, communities, press)
• Brand and Reputation (the new bottom
line)

19. Strategic
Capital
• Business model
– How the Social Era fits together
• External factors:
– Industry
– Economy
– Competition
– Globalization
– Regulation

20. IC Management
-Measure
-Manage
-Monetize

21. Intangible Capital Is The Core of
Every Business

22. Benefits of IC Management
• Optimized performance
Remove barriers and Let people fix the obvious
• Increased innovation
Collaboration from within and outside
• Higher valuation
Intangible Capital brings more value than tangible
• Great reputation
Reputation is driven by relationships and performance

23. The Social Era Of
Smarter Companies
Prepare Your Company To Be Smarter
Coming Soon…
Case Studies, Examples, & Stories
A Community of Practioners and Practices
Online Assessment & Measurement Tools.
The First Ever Intangible Index By Industry
And Much More Value From Intangibles