INDUSTRY INSIGHTS YOUR PEERS ARE READING
Women On Business Sponsors business risk entrepreneurs infographics intangible assets intellectual property small business trade secrets We''ve Moved! Update your Reader Now. This feed has moved to: [link] If you haven''t already done so, update your reader now with this changed subscription address to get your latest updates from us. link]. MORE
Tobin’s q is the ratio between a company’s market capitalization and the replacement cost of its tangible assets, with a higher ratio indicating that a company has more intangible assets such as patents, brands, leadership etc., In our sample, the average advertising intensity (advertising expenditure divided by total assets) of the family companies fell marginally, from 2.0% MORE
The closest proxy for EvD is to look at a firm’s intangible value, however, this will still fall short of fully estimating the value and therefore the risk inherent in data-laden enterprises. Using the same formula, Apple’s intangible assets in 2014 were $280 billion — or almost twice the value of its 2015 calculation. The challenge is to quantify the precise value of data to a firm so that economic value can be ascribed to this asset class over time. MORE
Even accounting rules specifically dealing with reputation — goodwill and intangible assets — are subject to frequent rule changes and endless debate. Listen in on MBA classes and corporate conferences and you will hear a lot of talk about the need for inspiring missions, ethical behavior and transcendent purpose. MORE
Different industries and different business models have always maintained different percentages of these asset types. Manufacturers invest most of their capital into physical assets, while high-tech firms invest in R&D to create new intellectual capital. MORE
In the early 1980’s, sixty percent of corporate value creation emanated from the optimization of tangible assets. Today, we live in an era where 85 percent of value creation stems from brand, intellectual property, and people — all intangible assets. MORE
But by then its one-time core assets — retail stores — had become expensive liabilities, weighing down the company’s effort to compete in the winner-take-all kind of market that is often characteristic of Big Bang innovation. With this week’s announcement, the company has acknowledged the accelerating decline in value of Blockbuster’s remaining physical locations, assets stranded by the lightning-fast pace of digital disruption. MORE
Recommended Resource – Strategy Maps: Converting Intangible Assets into Tangible Outcomes. I Have a Strategy, No You Don’t : The Illustrated Guide to Strategy. by Howell J Malham Jr. About the Book. MORE
SEPTEMBER 25, 2014
Financially, organizations require new models to account for information assets beyond treating them as intangibles. The ultimate goal is to treat information as a tangible flow rather than an intangible asset stuck on the balance sheet. If knowledge is power, then predictive analytics promises the ultimate knowledge — that of the future. MORE
The success of institutional-investment firms is socioeconomically vital: Their task is to grow the financial assets needed to fund retirements, development, education, scientific research, and many other capabilities associated with pensions, endowments, foundations, sovereign wealth funds, and the like. Collectively, the world’s investment giants hold in excess of $70 trillion in assets, which represents the bulk of investable capital globally. MORE
Since these shareholders have “skin in the game”, they have the incentive to look beyond earnings and instead look to a company’s long-term growth opportunities and intangible assets. Laura Schneider for HBR. If paying excessive CEO salaries is the most maligned use of corporate funds, stock buybacks may well take second place. Conventional wisdom is that CEOs buy back stock to manipulate the short-term stock price. MORE
These meetings allowed for the exchange of important information about the business model, intangible assets, future prospects, and more. As opposed to meeting with entrepreneurs, this model is largely based on financial reporting information, credit scoring, and the quality of accessible assets as collateral. Veronica Grech/Getty Images. MORE
tax law to keep up with changes in the business environment in the past three decades, including the growth in international trade and capital flows, the increased importance of intangible assets to businesses, and lower corporate tax rates in all our major trading partners. The current U.S. presidential administration and congressional leadership have spent months talking about tax reform. MORE
CVS is now one of a small group of companies that have realized that their reputation is the most valuable asset they have and that building a stronger reputation by avoiding risks to that reputation can create a significant competitive advantage. Finally, how can we calculate the intangible value associated with this rise in reputational capital for CVS? When CVS/Caremark announced that it would forego some $2 billion in sales of tobacco and related products recently, CEO Larry J. MORE
These choices are strategic, and a company must think about the broader picture too of the overall intangible assets your company possesses. The different forms of protection should be understood as an asset portfolio – you might want to diversify and spread your risk. For many years, beginning in 1942, Premarin was the only hormone replacement therapy drug on the market derived from a natural source. MORE
SEPTEMBER 25, 2014
Financially, organizations require new models to account for information assets beyond treating them as intangibles. The ultimate goal is to treat information as a tangible flow rather than an intangible asset stuck on the balance sheet. If knowledge is power, then predictive analytics promises the ultimate knowledge — that of the future. MORE
homes and cars) and intangible (e.g. expertise and relationships) assets, firms can gain these advantages of the Network Orchestration business model. Through co-creation, companies can access a deep well of customer capabilities, knowledge and assets. MORE
Frank Sonnenberg makes the case in Managing with a Conscience , that the only sustainable way to succeed is the right way—not cutting corners—emphasizing the intangibles like trust, creativity, focus, speed, flexibility, relationships, loyalty, and employee commitment. Sonnenberg believes that leaders who have a jaded view of intangible assets will never make the commitment required to reap their full potential. MORE
They spend 2-3 times more on intangible capital such as R&D, have higher shares of foreign revenue, and rely more on acquisitions and inorganic growth than median firms. Acquisitions, bold investment in intangible assets, and attracting talent can ultimately make the difference. MORE
Digital devotees tend to conflate digitization with intangible assets — the intensity of which has indeed soared in the last half century — in ways that exaggerate digital transformation’s potential. In the aftermath of the UK’s Brexit vote and Donald Trump’s election in the U.S., globalization is seen as a political hot potato rather than a hot ticket to prosperity. MORE
Our current financial accounting model cannot capture the principle value creator for digital companies: increasing return to scale on intangible investments. For an industrial company dealing with physical assets and goods, the balance sheet presents a reasonable picture of productive assets and the income statement provides a reasonable approximation of expenses required to create shareholder value. steven moore for hbr. MORE
Consider the dramatic shift in the types of assets that create market value. According to Ocean Tomo, a consulting firm focused on intellectual capital, physical assets (plant, property, and equipment) made up more than 80% of the market value of the S&P 500 in 1975. Today, the majority of market value is made up of intangible assets (networks, platforms, intellectual property, customer relationships, big data) more than physical assets. MORE
All three factors have become more common over time, which we argue stems from firms’ increasing reliance on intangible and knowledge inputs in their business models. westend61/Getty Images. MORE
They determine what material and intangible means of disease and trauma prevention, diagnosis, and treatment are needed for each mission. Medicines, instruments, consumables, and exercise devices belong to material assets; intangible assets involve medical expertise on board and on the ground, processes, procedures, and protocols. Before launch, all astronauts are trained to use the medical assets that will be on board. MORE
Second, the rise of intangible assets, like patents and widgets, means that transfer pricing issues become central, and so high tax rates become more untenable as they increase the incentives to be aggressive. MORE
An informed shareholder, who looks beyond earnings numbers and analyzes the company’s intangible assets, would notice that the firm has mortgaged its future. Gathering information on a firm’s intangible assets is costly, and so not worth doing if you own only a tiny bit of stock in a company. Large shareholders – blockholders – do have incentives to gather intangible information. Tim Evans for HBR. MORE
These are often referred to as “intangible assets,” but it’s worth getting more specific than that. There are other “intangible” assets that differentiate leading firms, and which can be difficult or costly to replicate. MORE
What we asked people was, at this point in their lives, are they actively building, maintaining, or depleting their tangible and intangible assets? Actively building both tangible and intangible assets is crucial to creating a long and productive working life. Learning how to build and maintain tangible assets is crucial to leading a long and productive life. Coaching and mentoring across age groups makes sense. MORE
Decades ago, a company’s market value was nearly equivalent to its tangible assets—buildings, machinery, materials, financial capital, and so on. In 1975 intangible assets were just 17% of the market value of the S&P 500. What exactly is all that intangible value? MORE
In the UK setting, after the imposition of mandatory quarterly reporting we found no change in company investments, measured as capital expenditures on plants, property, equipment, R&D, and intangible assets. David Malan/Getty Images. MORE
The Balanced Scorecard's primary form of novelty is that it takes into account the intangible assets that are so crucial for information-age companies. "Creative accounting" is really bad. Except when it's good. Say that in a roomful of managers, and you get nervous laughter. MORE
The point is not to nod in the direction of the "little people," but instead to recognize that the intangible assets an organization has are the product of the hundreds, perhaps the thousands, of "assists" — to extend the basketball metaphor — that usually go unnoticed but without which problems would not get solved, insights would not be generated, and uncertainties would not be vanquished. Interestingly, intangible assets are all the rage these days on Wall Street. MORE
Just lengthening that second stage of full-time work may secure the financial assets needed for a 100-year life, but such relentless work will inevitably deplete precious intangible assets such as productive skills, vitality, happiness, and friendship. MORE
Most organizations say their most important assets are their people, but few behave as if this were true. There is still a whole notion of focusing on tangible assets and their impact on the bottom line, rather than the intangible assets, which are people. Here''s a real shocker: In a survey of 3,300 senior managers and human resource professionals reported by Rob Lebow in his Washington CEO magazine. 75% of all organizational change programs fail. MORE
It struggles to account for today’s intangible assets—services, insights, and networks. Our research into business models clearly indicates a world where networks and digital assets are more valuable than things and “access” is more convenient than ownership. MORE
These results can be, in my experience, best conceived as a progression of outcomes moving from intangible assets to tangible outcomes. MORE
At home, we’re Marie Kondo–ing our way to minimalism, buying experiences rather than things, and using services — Netflix, Spotify, Uber — rather than owning assets such as movies, music, and cars. The companies that provide those services and enable us to share what we have (insights, relationships, assets) with others not only are valued more highly by investors but also are relatively asset-light themselves. MORE
Clinton has proposed raising both taxes by removing some corporate tax breaks, raising capital gains tax rates on assets held from one to six years, imposing a surtax on high-income taxpayers, and taxing some capital gains on assets held until death. There’s no good way to determine where those increasingly important intangibles are located. MORE
” Value investors like Graham and Buffett believe that the sources of sustainable returns on capital are not a company’s human assets but their so-called “economic moats,” structural, durable competitive advantages around revenues or costs. STEVEN MOORE FOR HBR. MORE
Second, for small and rapid-growth technology companies, the problem is compounded by the fact that, while rich in intangible assets, they typically lack the kind of collateral (equipment, inventory, real estate, etc.) MORE
corporations to accumulate assets in those affiliates (now estimated at $2.6 The legislation would replace the tax on profits that are repatriated with a low-rate tax on annual profits attributable to the intangible assets of their foreign affiliates, impose a one-time transition tax on the stock of accrued foreign profits of U.S. Daniel Haskett/Getty Images. MORE
Intangible Assets Related Topics Women on Business
JANUARY 5, 2015
Women On Business Sponsors business risk entrepreneurs infographics intangible assets intellectual property small business trade secrets We''ve Moved! Update your Reader Now. This feed has moved to: [link] If you haven''t already done so, update your reader now with this changed subscription address to get your latest updates from us. link].
Harvard Business Review
JUNE 16, 2011
The point is not to nod in the direction of the "little people," but instead to recognize that the intangible assets an organization has are the product of the hundreds, perhaps the thousands, of "assists" — to extend the basketball metaphor — that usually go unnoticed but without which problems would not get solved, insights would not be generated, and uncertainties would not be vanquished. Interestingly, intangible assets are all the rage these days on Wall Street.
Six Disciplines
FEBRUARY 21, 2014
Most organizations say their most important assets are their people, but few behave as if this were true. There is still a whole notion of focusing on tangible assets and their impact on the bottom line, rather than the intangible assets, which are people. Here''s a real shocker: In a survey of 3,300 senior managers and human resource professionals reported by Rob Lebow in his Washington CEO magazine. 75% of all organizational change programs fail.
Strategy Driven
APRIL 4, 2013
Recommended Resource – Strategy Maps: Converting Intangible Assets into Tangible Outcomes. I Have a Strategy, No You Don’t : The Illustrated Guide to Strategy. by Howell J Malham Jr. About the Book.
Leading Blog
JANUARY 27, 2012
Frank Sonnenberg makes the case in Managing with a Conscience , that the only sustainable way to succeed is the right way—not cutting corners—emphasizing the intangibles like trust, creativity, focus, speed, flexibility, relationships, loyalty, and employee commitment. Sonnenberg believes that leaders who have a jaded view of intangible assets will never make the commitment required to reap their full potential.
Harvard Business Review
DECEMBER 21, 2016
Consider the dramatic shift in the types of assets that create market value. According to Ocean Tomo, a consulting firm focused on intellectual capital, physical assets (plant, property, and equipment) made up more than 80% of the market value of the S&P 500 in 1975. Today, the majority of market value is made up of intangible assets (networks, platforms, intellectual property, customer relationships, big data) more than physical assets.
Great Leadership By Dan
SEPTEMBER 7, 2011
These results can be, in my experience, best conceived as a progression of outcomes moving from intangible assets to tangible outcomes.
Harvard Business Review
SEPTEMBER 23, 2015
Decades ago, a company’s market value was nearly equivalent to its tangible assets—buildings, machinery, materials, financial capital, and so on. In 1975 intangible assets were just 17% of the market value of the S&P 500. What exactly is all that intangible value?
Harvard Business Review
AUGUST 27, 2018
All three factors have become more common over time, which we argue stems from firms’ increasing reliance on intangible and knowledge inputs in their business models. westend61/Getty Images.
Harvard Business Review
OCTOBER 25, 2018
They spend 2-3 times more on intangible capital such as R&D, have higher shares of foreign revenue, and rely more on acquisitions and inorganic growth than median firms. Acquisitions, bold investment in intangible assets, and attracting talent can ultimately make the difference.
Harvard Business Review
SEPTEMBER 16, 2016
The closest proxy for EvD is to look at a firm’s intangible value, however, this will still fall short of fully estimating the value and therefore the risk inherent in data-laden enterprises. Using the same formula, Apple’s intangible assets in 2014 were $280 billion — or almost twice the value of its 2015 calculation. The challenge is to quantify the precise value of data to a firm so that economic value can be ascribed to this asset class over time.
Harvard Business Review
SEPTEMBER 6, 2018
In the UK setting, after the imposition of mandatory quarterly reporting we found no change in company investments, measured as capital expenditures on plants, property, equipment, R&D, and intangible assets. David Malan/Getty Images.
Harvard Business Review
FEBRUARY 26, 2018
Our current financial accounting model cannot capture the principle value creator for digital companies: increasing return to scale on intangible investments. For an industrial company dealing with physical assets and goods, the balance sheet presents a reasonable picture of productive assets and the income statement provides a reasonable approximation of expenses required to create shareholder value. steven moore for hbr.
Harvard Business Review
JUNE 22, 2016
Different industries and different business models have always maintained different percentages of these asset types. Manufacturers invest most of their capital into physical assets, while high-tech firms invest in R&D to create new intellectual capital.
Harvard Business Review
JULY 28, 2016
It struggles to account for today’s intangible assets—services, insights, and networks. Our research into business models clearly indicates a world where networks and digital assets are more valuable than things and “access” is more convenient than ownership.
Harvard Business Review
SEPTEMBER 28, 2015
” Value investors like Graham and Buffett believe that the sources of sustainable returns on capital are not a company’s human assets but their so-called “economic moats,” structural, durable competitive advantages around revenues or costs. STEVEN MOORE FOR HBR.
Harvard Business Review
SEPTEMBER 4, 2012
Second, for small and rapid-growth technology companies, the problem is compounded by the fact that, while rich in intangible assets, they typically lack the kind of collateral (equipment, inventory, real estate, etc.)
Harvard Business Review
JULY 18, 2017
An informed shareholder, who looks beyond earnings numbers and analyzes the company’s intangible assets, would notice that the firm has mortgaged its future. Gathering information on a firm’s intangible assets is costly, and so not worth doing if you own only a tiny bit of stock in a company. Large shareholders – blockholders – do have incentives to gather intangible information. Tim Evans for HBR.
Harvard Business Review
JUNE 27, 2016
Just lengthening that second stage of full-time work may secure the financial assets needed for a 100-year life, but such relentless work will inevitably deplete precious intangible assets such as productive skills, vitality, happiness, and friendship.
Harvard Business Review
SEPTEMBER 19, 2018
These meetings allowed for the exchange of important information about the business model, intangible assets, future prospects, and more. As opposed to meeting with entrepreneurs, this model is largely based on financial reporting information, credit scoring, and the quality of accessible assets as collateral. Veronica Grech/Getty Images.
Harvard Business Review
NOVEMBER 19, 2018
These are often referred to as “intangible assets,” but it’s worth getting more specific than that. There are other “intangible” assets that differentiate leading firms, and which can be difficult or costly to replicate.
Harvard Business Review
DECEMBER 11, 2017
corporations to accumulate assets in those affiliates (now estimated at $2.6 The legislation would replace the tax on profits that are repatriated with a low-rate tax on annual profits attributable to the intangible assets of their foreign affiliates, impose a one-time transition tax on the stock of accrued foreign profits of U.S. Daniel Haskett/Getty Images.
Harvard Business Review
AUGUST 22, 2017
tax law to keep up with changes in the business environment in the past three decades, including the growth in international trade and capital flows, the increased importance of intangible assets to businesses, and lower corporate tax rates in all our major trading partners. The current U.S. presidential administration and congressional leadership have spent months talking about tax reform.
Harvard Business Review
JULY 6, 2017
They determine what material and intangible means of disease and trauma prevention, diagnosis, and treatment are needed for each mission. Medicines, instruments, consumables, and exercise devices belong to material assets; intangible assets involve medical expertise on board and on the ground, processes, procedures, and protocols. Before launch, all astronauts are trained to use the medical assets that will be on board.
Harvard Business Review
SEPTEMBER 29, 2016
At home, we’re Marie Kondo–ing our way to minimalism, buying experiences rather than things, and using services — Netflix, Spotify, Uber — rather than owning assets such as movies, music, and cars. The companies that provide those services and enable us to share what we have (insights, relationships, assets) with others not only are valued more highly by investors but also are relatively asset-light themselves.
Harvard Business Review
NOVEMBER 1, 2016
Clinton has proposed raising both taxes by removing some corporate tax breaks, raising capital gains tax rates on assets held from one to six years, imposing a surtax on high-income taxpayers, and taxing some capital gains on assets held until death. There’s no good way to determine where those increasingly important intangibles are located.
Harvard Business Review
JULY 3, 2015
homes and cars) and intangible (e.g. expertise and relationships) assets, firms can gain these advantages of the Network Orchestration business model. Through co-creation, companies can access a deep well of customer capabilities, knowledge and assets.
Harvard Business Review
OCTOBER 24, 2016
The success of institutional-investment firms is socioeconomically vital: Their task is to grow the financial assets needed to fund retirements, development, education, scientific research, and many other capabilities associated with pensions, endowments, foundations, sovereign wealth funds, and the like. Collectively, the world’s investment giants hold in excess of $70 trillion in assets, which represents the bulk of investable capital globally.
Harvard Business Review
APRIL 7, 2014
Tobin’s q is the ratio between a company’s market capitalization and the replacement cost of its tangible assets, with a higher ratio indicating that a company has more intangible assets such as patents, brands, leadership etc., In our sample, the average advertising intensity (advertising expenditure divided by total assets) of the family companies fell marginally, from 2.0%
Harvard Business Review
FEBRUARY 1, 2017
Digital devotees tend to conflate digitization with intangible assets — the intensity of which has indeed soared in the last half century — in ways that exaggerate digital transformation’s potential. In the aftermath of the UK’s Brexit vote and Donald Trump’s election in the U.S., globalization is seen as a political hot potato rather than a hot ticket to prosperity.
Harvard Business Review
JULY 29, 2014
In the early 1980’s, sixty percent of corporate value creation emanated from the optimization of tangible assets. Today, we live in an era where 85 percent of value creation stems from brand, intellectual property, and people — all intangible assets.
Harvard Business Review
OCTOBER 25, 2011
Even accounting rules specifically dealing with reputation — goodwill and intangible assets — are subject to frequent rule changes and endless debate. Listen in on MBA classes and corporate conferences and you will hear a lot of talk about the need for inspiring missions, ethical behavior and transcendent purpose.
Harvard Business Review
SEPTEMBER 25, 2014
Financially, organizations require new models to account for information assets beyond treating them as intangibles. The ultimate goal is to treat information as a tangible flow rather than an intangible asset stuck on the balance sheet. If knowledge is power, then predictive analytics promises the ultimate knowledge — that of the future.
Harvard Business Review
SEPTEMBER 15, 2017
Since these shareholders have “skin in the game”, they have the incentive to look beyond earnings and instead look to a company’s long-term growth opportunities and intangible assets. Laura Schneider for HBR. If paying excessive CEO salaries is the most maligned use of corporate funds, stock buybacks may well take second place. Conventional wisdom is that CEOs buy back stock to manipulate the short-term stock price.
Harvard Business Review
NOVEMBER 29, 2010
The Balanced Scorecard's primary form of novelty is that it takes into account the intangible assets that are so crucial for information-age companies. "Creative accounting" is really bad. Except when it's good. Say that in a roomful of managers, and you get nervous laughter.
Harvard Business Review
NOVEMBER 7, 2013
But by then its one-time core assets — retail stores — had become expensive liabilities, weighing down the company’s effort to compete in the winner-take-all kind of market that is often characteristic of Big Bang innovation. With this week’s announcement, the company has acknowledged the accelerating decline in value of Blockbuster’s remaining physical locations, assets stranded by the lightning-fast pace of digital disruption.
Harvard Business Review
MAY 23, 2013
Second, the rise of intangible assets, like patents and widgets, means that transfer pricing issues become central, and so high tax rates become more untenable as they increase the incentives to be aggressive.
Harvard Business Review
SEPTEMBER 25, 2014
Financially, organizations require new models to account for information assets beyond treating them as intangibles. The ultimate goal is to treat information as a tangible flow rather than an intangible asset stuck on the balance sheet. If knowledge is power, then predictive analytics promises the ultimate knowledge — that of the future.
Harvard Business Review
FEBRUARY 7, 2014
CVS is now one of a small group of companies that have realized that their reputation is the most valuable asset they have and that building a stronger reputation by avoiding risks to that reputation can create a significant competitive advantage. Finally, how can we calculate the intangible value associated with this rise in reputational capital for CVS? When CVS/Caremark announced that it would forego some $2 billion in sales of tobacco and related products recently, CEO Larry J.
Harvard Business Review
NOVEMBER 21, 2013
These choices are strategic, and a company must think about the broader picture too of the overall intangible assets your company possesses. The different forms of protection should be understood as an asset portfolio – you might want to diversify and spread your risk. For many years, beginning in 1942, Premarin was the only hormone replacement therapy drug on the market derived from a natural source.
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