Prepare To Be A Smarter Company

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 1

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

3. That was then 3

4. This is now 4

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

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

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 7

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 8

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

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

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

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% Energy Industrials Consumer Staples Financials Utilities Materials Health Care Telecommunications Services Consumer Discretionary Information Technology 12

13. For now, holding at +/- 80% 13

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

15. What is IC? 15

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

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 17

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

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

20. IC Management -Measure -Manage -Monetize 20

21. Intangible Capital Is The Core of Every Business 21

22. Benefits of IC Management • Optimized performance Remove barriers andLet 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 22

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 23

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