A Fresh Start

A Fresh Start Workshop to optimize your strategy and execution Mary Adams Association for Strategic Planning Boston, January 2010 ICA-1

I-Capital Advisors • Launched in 2008 (original firm 1999) • Clients: Technology and service • Focus: Visualize, manage, measure intangibles for growth and innovation • Role: Speaker, consultant, tools • Products: Intangible Capital (in bookstores 2010), IC Factory, IC Rating ICA-2

Economic value is increasingly intangible Components of S&P 500® Market Capitalization 14,000 Market Premium 12,000 Intangible Book Value Tangible Book Value 10,000 8,000 S&P 500 Market Cap ($ billions) 6,000 4,000 2,000 - 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Research: Ned Davis ICA-3

This change touches all sectors Intangible Value as a % of Total Market Capitalization by Sector 100% 90% 80% 70% 60% 1975 50% 2005 40% 30% 20% 10% 0% ner gy als ials ary ap l es ar e cia ls ice s o gy tie s teri st r tion er St th C in an er v tili E M a I nd u cr e al S chn ol U Dis o ns u m He F ion s Te er ca t tion um C u ni ma C o ns o mm Inf or lec Te Research: Ned Davis ICA-4

E&Y: M&A in 2007 Tangible, 30% Goodwill, 47% Intangible, 23% E&Y: Acquisition Accounting – What’s Next for You? ICA-5

U.S. corporate investments - 2007 Tangible $1.2 trillion, 43% Intangible $1.6 trillion, 57% Business Week, October 29, 2009 ICA-6

The clearest answers come from the field of IC (intangible capital) ICA-7

Knowledge Assets ICA-8

Value is created when IC elements are combined in a system ICA-9

Human Capital ICA-10

+ Structural Capital ICA-11

+ Relationship Capital ICA-12

+ more Structural Capital (that generates revenue) ICA-13

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This “knowledge factory” grossed $22+ billion in 2008 From: You Can Grow Like Google on YouTube ICA-15

Knowledge Factory Principles 1. Whole greater than sum of its parts 2. Ownership is dispersed 3. Power flows down…and up 4. Held together by reputation, not control 5. Runs on information technology 6. It is a business ICA-16

1. Management Groups 2. Strategy 3. Acctg/MIS Tasks: Draw two icons to contrast industrial- and knowledge era paradigms in this discipline Estimate where most companies are in the transition between the two ICA-17

Intangibles battle cry “Technology and especially the internet can really help you be lazy. Find the leverage in the world, so you can be more lazy!” - Larry Page ICA-18

A Fresh Start

by Mary Adams on Feb 02, 2010

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A Fresh Start — Presentation Transcript