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Smarter-CompaniesValue 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

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In The Old Days…..

Those That Had The Most Tangible Assets Were The

Kings of Industry…

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That was then

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This is now

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It’s a seismic shift

Agricultural Era Industrial Era Social Era

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Understanding the shift

Industrial Social Era

Tangible Intangible Assets

Factory Networks

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Intangibles Fuel The Social EraThey influence: 1.How we organize2.How we deliver value3.How we sell and market4.How we create economic value from our business

models 5.How we compete6.How we view the value people bring to creating

value7.And most of all how we think

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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

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Investments Follow Value..

http://www.conference-board.org/data/intangibles/

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Where has the money gone?

…to build intangible assets:

• In technology

• In people

• In processes

• In designs, products

• In networks

• In brands

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Investment created new value

Source: Ocean Tomo

“Intangible,” off-balance

sheet portion of corporate value

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Shift happened economy-wide

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Energy

Materials

Industrials

Consumer Discretionary

Consumer Staples

Health Care

Financials

Telecommunications Services

Information Technology

Utilities

Intangible Value as a % of Total Market Capitalization by Sector

1975

2005

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For now, holding at +/- 80%

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

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What is IC?

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Human Capital

• People:– Competencies– Experience– Loyalty

• Management– Industry experience– Systemic expertise– Learning designs

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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

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Relationship Capital

• Customers

• External partners (suppliers, outsourcing partners, regulators, communities, press)

• Brand and Reputation (the new bottom line)

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Strategic Capital

• Business model– How the Social Era fits together

• External factors:– Industry– Economy– Competition– Globalization– Regulation

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-Measure-Manage-Monetize

IC Management

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Intangible Capital Is The Core of Every Business

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Benefits of IC Management

• Optimized performanceRemove barriers and Let people fix the obvious

• Increased innovationCollaboration from within and outside

• Higher valuationIntangible Capital brings more value than tangible

• Great reputationReputation is driven by relationships and performance

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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

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