The shift to the knowledge era is driving the need for new tools for management. This workshop helped participants talk about these new tools and how the shift has affected their own work. See blog post to see some of the outcomes of the workshop http://www.i-capitaladvisors.com/2010/02/02/thoughts-on-the-shift-to-the-knowledge-economy/

1. A Fresh Start
Workshop to optimize your
strategy and execution
Mary Adams
Association for Strategic Planning
Boston, January 2010
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2. 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
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3. 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
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4. 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

5. E&Y: M&A in 2007
Tangible, 30%
Goodwill, 47%
Intangible, 23%
E&Y: Acquisition Accounting – What’s Next for You?
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6. U.S. corporate investments - 2007
Tangible $1.2
trillion, 43%
Intangible $1.6
trillion, 57%
Business Week, October 29, 2009
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7. The clearest answers come from
the field of IC (intangible capital)
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8. Knowledge
Assets
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9. Value is created when IC elements
are combined in a system
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10. Human Capital
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11. + Structural Capital
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12. + Relationship Capital
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13. + more Structural Capital
(that generates revenue)
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+ more Relationship Capital
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15. This “knowledge factory”
grossed $22+ billion in 2008
From: You Can Grow Like Google on YouTube
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16. 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
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17. 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
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18. 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
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