This presentation was prepared for the 2010 Australian Innovation festival by Mission HQ. It provides a framework that we utilise in consulting engagements for the valuation of technology based
This presentation was prepared for the 2010 Australian Innovation festival by Mission HQ. It provides a framework that we utilise in consulting engagements for the valuation of technology based intellectual property.
what are intangible assets? Intangible Assets intellectual assets (IA) intellectual property (IP) intellectual capital (IC) patented technologies trade marks designs copyright databases trade secrets key skills know-how processes market data information un-recorded inventions data business relationships licenses branding reputation human resources What are intangible assets?
Skandia Concept of Intangible Assets Market Value Financial Capital value of all physical and monetary assets Intellectual Capital Human Capital ‘thinking’
Customer (Relationship) Capital customers, suppliers, shareholders, alliance partners, other stakeholders Innovation Capital renewal and development value Process Capital Intellectual Property Intangible Assets
Adam and Oleksak Concept of Intellectual Capital Market Value Intellectual Capital Financial Capital Human Capital Structural Capital Relationship Capital Business Model Management Intellectual Property Network Employees Processes Brand Customers
Human Capital This indicates tacit knowledge, skills, abilities and experience embedded in individuals within an organization. intellectual agility for adaptation, innovation and cross-fertilisation.
Structural Capital knowledge and rules embedded within organizational routines, including mechanisms and structures of the organization, assets linked to methodologies, technologies and processes, licenses, patents, trademarks, research and development strength, architectural competencies which enable a firm to integrate component competencies in new and flexible ways
Relational Capital This involves every existing business network linking an organisation to partners (distributors, suppliers and alliance associates) at higher and lower regions of its value stream; corporate image and perceptible reputation; building blocks of customer base, customer loyalty, market connectivity.
Business Model This consists of competitive ability, extent of market control, knack for business development and rationality of strategy. Covered in further detail later in this presentation.
-30- Intellectual Property Foundations – what is IP? Intellectual property rights are the legal rights which result from creations of the mind (such as inventions, literary and artistic works, and symbols, names, images, and designs used in commerce). IP rights can be broadly categorised into two groups: IP rights which are registerableand those which are not.
-32- Intellectual Property Foundations Patents A patent is a right granted for any device, substance, method or process, which is new, inventive and useful. Patents do not protect artistic creations, mathematical models, plans, schemes or other purely mental processes. A patent gives the owner the exclusive right to prevent others from exploiting the invention the subject of the patent. The term of an Australian standard patent is 20 years.
-45- Evaluation Process Simplify a customer’s evaluation process Example: ISELECT
-46- Value Co-Creation Through various technological advances the integration and participation of the customer in the value creation process is increasingly possible. Together with the knowledge and networks of customers additional value can be created and facilitated. Examples: Ebay & Amazon
-47- Purchasing Process Customers highly value an efficient, simple and convenient purchase process.Example: Creative Mobile Technologies back-seat swipe and entertainment for Taxi Cabs
-48- Set-Up/Installation In some cases set-up or installation is necessary. The simplification of this process is of enormous value to the customer. Example: Dick Smith: Mobile Techxphert Services
-49- Use/Operation In many cases most of the value in a value proposition comes from the use or operation of an actual product or service. However, to differentiate themselves companies try to create value beyond a simple product or service. Salesforceis carefully creating additional value by offering continuous updating "behind the scenes" and providing easy access to complementary products by third party vendors.
-50- Maintenance & aftersales support Value is often created during the maintenance and after-sales phase. This can be either by offering high quality service or by offering a value proposition that minimizes the need for maintenance & after-sales. Example: The attractiveness of salesforce.com’s value proposition essentially comes from the fact that the hosted software model (application service provider - ASP) minimizes the need of software maintenance by the customer.
-51- Ending and value transfer In many cases once a customer does not need a product or service anymore he has to terminate the service or dispose of the product.Example: BMW Recycling Programme