Intangible Assets Quotes

IP is not just an idea; it’s an intangible asset that does a specific job for you. Each one is different—patents, trademarks, copyrights. The specific way you get that job done is what you’re protecting, and the way you do it affects the asset value.

Human capital is without a doubt the most important intangible asset to develop, and will continue to be.

Human and intellectual capital may be the most important intangible assets.

IP is an intangible asset—an idea converted into transferable personal property rights through patents, trademarks, copyrights, service marks, and trade secrets. IP covers every famous animated character you’ve ever heard of, the logos on your clothing. IP covers products and services you use every day—from flashlights to mobile phones, packaging to cars, food and beverage products, to smart thermostats. IP is not only for big businesses. Most start-ups and event microbusinesses have IP of some kind. 

Corporate governance involves its fair share of tangible assets, but safeguarding intangible assets like reputation is equally important.

Today, even tangibles are intangibles - cars, planes, and computers rely on software. They are essentially digital assets under the disguise of a mechanical body, and much of their value is intangible.

Build intangible assets alongside tangible financial assets in leadership.

Scalability becomes supercharged with “network effects.” A network effect exists when assets become more valuable the more of them exist.

If you can measure it, you can manage it.

Intangible assets are real, identifiable assets that are not physical objects.

What if, by contrast, you are more a user of intangible assets: say, the Amazon warehouse, using the knowledge of the routing algorithm, or Starbucks, using the franchise book? For these firms, the organization and so management would look different. You probably want to have more hierarchies and short-term targets, since you are less worried about information flows form below and more concerned about low performance and stopping influence activities.

The age-old trick of transfer pricing Taking advantage of the fact that they operate in countries with different tax rates, TNCs [transnational corporations] have their subsidiaries over-charge or under-charge each other – sometimes grossly – so that profits are highest in those subsidiaries operating in countries with the lowest corporate tax rates. In this way, their global post-tax profit is maximized. A 2005 report by Christian Aid, the development charity, documents cases of under-priced exports like TV antennas from China at $0.40 apiece, rocket launchers from Bolivia at $40 and US bulldozers at $528 and over-priced imports such as German hacksaw blades at $5,485 each, Japanese tweezers at $4,896 and French wrenches at $1,089. The Starbucks and Google cases were different from those examples only in that they mainly involved ‘intangible assets’, such as brand licensing fees, patent royalties, interest charges on loans and in-house consultancy (e.g., coffee quality testing, store design), but the principle involved was the same. When TNCs evade taxes through transfer pricing, they use but do not pay for the collective productive inputs financed by tax revenue, such as infrastructure, education and R&D. This means that the host economy is effectively subsidizing TNCs.

THE TEN CHARACTERISTICS OF DIFFERENCE THINKERS They practice empathy because they care enough to make an impact. They have a clear sense of the change they want to make in the world. They are impatient about tactics and endlessly patient about implementing their strategy. They ask the right questions, and that means that they talk more than twice as much as they listen, because talking takes guts. Mostly, they ignore those who offer empty criticism. They watch what people do and don’t just believe what people tell them. They innovate and create at the edges, ignoring the market of everyone. They make products for their customers, instead of trying to find customers for their products. They understand that they need to give people a story to tell—a ‘you’ve gotta see this’ moment. They work hard to change how people feel, by creating intangible value that gives them an emotional point of difference. They understand that trust is their second-most valuable asset. The first is the willingness to be wrong for the right reason.

So, if you are predominantly a producer of intangible assets (writing software, doing design, producing research) you probably want to build an organization that allows information to flow, help serendipitous interactions, and keeps the key talent. That probably means allowing more autonomy, fewer targets, and more access to the boss, even if that is at the cost of influence activities. This seems to describe the types of autonomous organizations that the earlier writers, like Charles Leadbeater, had in mind. And it also seems to describe the increasing importance of systemic innovators. Such innovators are not inventors of single, isolated inventions. Rather, their role is to coordinate the synergies that successfully bring such an innovation to market.

The final way to respond to the difficulty of lending against intangibles is the most radical. It is for businesses to change their finance mix: specifically, to rely more on equity and less on debt. Should a business fail, equity owners have no recourse - they get nothing - so can afford to be relatively insouciant about the liquidation value of a business's assets. This makes equity a better way of funding businesses with few tangible assets.

Toyota wasn’t really worried that it would give away its “secret sauce.” Toyota’s competitive advantage rested firmly in its proprietary, complex, and often unspoken processes. In hindsight, Ernie Schaefer, a longtime GM manager who toured the Toyota plant, told NPR’s This American Life that he realized that there were no special secrets to see on the manufacturing floors. “You know, they never prohibited us from walking through the plant, understanding, even asking questions of some of their key people,” Schaefer said. “I’ve often puzzled over that, why they did that. And I think they recognized we were asking the wrong questions. We didn’t understand this bigger picture.” It’s no surprise, really. Processes are often hard to see—they’re a combination of both formal, defined, and documented steps and expectations and informal, habitual routines or ways of working that have evolved over time. But they matter profoundly. As MIT’s Edgar Schein has explored and discussed, processes are a critical part of the unspoken culture of an organization. 1 They enforce “this is what matters most to us.” Processes are intangible; they belong to the company. They emerge from hundreds and hundreds of small decisions about how to solve a problem. They’re critical to strategy, but they also can’t easily be copied. Pixar Animation Studios, too, has openly shared its creative process with the world. Pixar’s longtime president Ed Catmull has literally written the book on how the digital film company fosters collective creativity2—there are fixed processes about how a movie idea is generated, critiqued, improved, and perfected. Yet Pixar’s competitors have yet to equal Pixar’s successes. Like Toyota, Southern New Hampshire University has been open with would-be competitors, regularly offering tours and visits to other educational institutions. As President Paul LeBlanc sees it, competition is always possible from well-financed organizations with more powerful brand recognition. But those assets alone aren’t enough to give them a leg up. SNHU has taken years to craft and integrate the right experiences and processes for its students and they would be exceedingly difficult for a would-be competitor to copy. SNHU did not invent all its tactics for recruiting and serving its online students. It borrowed from some of the best practices of the for-profit educational sector. But what it’s done with laser focus is to ensure that all its processes—hundreds and hundreds of individual “this is how we do it” processes—focus specifically on how to best respond to the job students are hiring it for. “We think we have advantages by ‘owning’ these processes internally,” LeBlanc says, “and some of that is tied to our culture and passion for students.

Revenue Multiples. In the section on myths we also discussed the problems associated with revenue multiples and why they are poor indicators of value. Multiples of revenues are bogus for four reasons. First, because the range of multiples is too wide to be useful. Second, because comparisons using the multiple are simply not valid. Just because one company sold for a certain multiple of revenue does not mean that another company will sell for that same multiple, even if the companies are similar. Third, revenue multiples do not consider cost structures, management talent, pricing, profitability, or growth. And fourth is the problem of narrow markets; there are only a limited number of strategic buyers who can benefit from the seller’s key assets. These buyers care only about the strategic fit with their company, not some revenue multiple. WHAT

This vision is very much in line with the views of the economist John Kay in his book Other People’s Money (2015). As he says, stock markets, when first started, were the vehicles for raising finance often for large infrastructure projects (typically railways) from many dispersed shareholders. But markets no longer provide this function. Almost no new projects are financed via the stock market. (Indeed, the observation that few early-state companies come to the stock market for financing rather confirms the hypothesis that stock markets have significant problems dealing with them.) Rather, stock market trading is dominated by large asset managers trading with each other. In Kay’s view, they are searching for returns over and above those available to the market as a whole (searching for “alpha”) by trying to anticipate what others are thinking about the value of assets rather than the value of the underlying assets themselves.

Summers also claimed that technology was reducing the demand for capital. Digital businesses, such as Facebook and Google, had established dominant global franchises with relatively little invested capital and small workforces. In his book The Zero Marginal Cost Society (2014), the social theorist Jeremy Rifkin heralded the passing of traditional capitalism.16 If the Old Economy was marked by scarcity and declining marginal returns, Rikfin argued that the New Economy was characterized by zero marginal costs, increasing returns to scale and capital-lite ‘sharing’ apps (such as Uber, Lyft, Airbnb, etc.). The demand for capital and interest rates, he said, were set to fall in this ‘economy of abundance’. There was some evidence to support Rifkin’s claims. The balance sheets of US companies showed they were using fewer fixed assets (factories, plant, equipment, etc.) and reporting more ‘intangibles’ – namely, assets derived from patents, intellectual property and merger premiums. In much of the rest of the world, however, the demand for old-fashioned capital remained as strong as ever. After the turn of the century, the developing world exhibited a voracious appetite for industrial commodities that required massive mining investment. China embarked on what was probably the greatest investment boom in history. Before and after 2008, global energy consumption rose steadily. The world’s total investment (relative to GDP) remained in line with its historical average.17 Rifkin’s ‘economy of abundance’ remained a tantalizing speculation.

How much actual cash that original DESIRE of Barnes' has been worth to him, I have no way of knowing. Perhaps it has brought him two or three million dollars, but the amount, whatever it is, becomes insignificant when compared with the greater asset he acquired in the form of definite knowledge that an intangible impulse of thought can be transmuted into its physical counterpart by the application of known principles.

SEPTEMBER 25 GROWTH OF PEOPLE = GROWTH OF COMPANY People are the principal asset of any company, whether it makes things to sell, sells things made by other people, or supplies intangible services. Nothing moves until your people can make it move. In actual studies of leadership in American business, the average executive spends three-fourths of his working time dealing with people. The largest single cost in most business is people. The largest, most valuable asset any company has is its people. All executive plans are carried out, or fail to be carried out, by people. According to William J. H. Boetcker, people divide themselves into four classes: 1. Those who always do less than they are told 2. Those who will do what they are told, but no more 3. Those who will do things without being told 4. Those who will inspire others to do things It’s up to you. As Ralph Waldo Emerson said, “Trust men and they will be true to you: treat them greatly and they will show themselves great.” —Developing the Leader Within You CULTIVATE AN ENVIRONMENT THAT INSPIRES YOUR PEOPLE TO DO GREAT THINGS.

The value of an intangible company is strategic value and it is truly in the eye of the beholder. It is worth whatever the buyer is willing to pay. Strategic value can vary widely depending on how well the buyer can capitalize on the seller’s strategic assets. Do

AS COMPANIES AROUND the world transform themselves for competition that is based on information, their ability to exploit intangible assets has become far more decisive than their ability to invest in and manage physical assets.

Primal branding is about delivering the primal code. It is a construct of seven assets that help manage the intangibles of your brand.

Faith and trust are like intangible assets; stay along with the books of life, even if not accounted for.

6The report showed that while ‘intangible assets’ were growing on US and UK company balance sheets at nearly three times the rate of tangible assets, the actual size of the digital sector in the GDP figures had remained static. So something is broken in the logic we use to value the most important thing in the modern economy. However, by any measure, it is clear that the mix of inputs has altered. An airliner looks like old technology. But from the atomic structure of the fan blades, to the compressed design cycle, to the stream of data it is firing back to its fleet HQ, it is ‘alive’ with information.

Just as free goods rather than physical products are an increasingly important share of consumption, intangibles also make up a growing share of the economy’s capital assets.

Abundance in life is not only measured in financial and tangible material assets, but also in many intangible ways like good health, happiness, peace of mind, smooth-sailing projects and life's fulfillment.

the art of creating value from intangible assets (Liebowitz 1999; Nonaka

The competitive advantage of the twenty-first century is increasingly derived from hard-to-copy intangible assets such as company culture and leadership effectiveness.

There IS POWER IN PRAYER! It is the cheapest intangible asset we have and do not use enough of.

Competitive advantage rarely comes from tangible assets since these assets can easily be acquired by competitors. Competitive advantage tends to be associated with unique, hard-to-duplicate intangible assets.

This last line was wholly truthful. It was worth shooting for. If Blue Ribbon went bust, I’d have no money, and I’d be crushed. But I’d also have some valuable wisdom, which I could apply to the next business. Wisdom seemed an intangible asset, but an asset all the same, one that justified the risk. Starting my own business was the only thing that made life’s other risks—marriage, Vegas, alligator wrestling—seem like sure things. But my hope was that when I failed, if I failed, I’d fail quickly, so I’d have enough time, enough years, to implement all the hard-won lessons. I wasn’t much for setting goals, but this goal kept flashing through my mind every day, until it became my internal chant: Fail fast. In

Production in the second machine age depends less on physical equipment and structures and more on the four categories of intangible assets: intellectual property, organizational capital, user-generated content, and human capital.

In 1982, economists at the Brookings Institute estimated that about 62 per cent of the value of a typical American firm stemmed from its physical assets—everything from tables and chairs to factories and inventories. Everything else consisted of more intangible “knowledge assets.” By 1992, the balance had completely reversed. They calculated that only 38 per cent of the average firm’s value came from its physical assets. With the shift towards more knowledge-intensive production processes, it is natural that firms should start to worry much more about employee loyalty. It is relatively easy to stop employees from making off with company property—just post guards at the gate. But when employees leave, they generally take with them all the knowledge and experience they have acquired, and there is no way to stop them. So the best way for a firm to retain control of its assets is to build a strong organizational culture, one that will inspire loyalty and allegiance from its employees. From this perspective, it is entirely predictable that the firms that depend most heavily on the knowledge of their workers will also be the firms that put the most effort into employee retention. Software companies in particular are famous for their efforts to create a corporate culture that will secure employee allegiance.

To grow, a company may acquire other businesses and pay more than the market cost. The excess payment is called goodwill. Goodwill is an intangible asset and usually cannot be sold separately; it does not exist on its own outside the business. Examples include the brand, experience on the market, and reputation. Goodwill exists as long as the company exists, and it has an unlimited lifespan.

consider whether intangible assets such as brand names, reputation, and culture are relevant in testing the hypothesis. For example, if a no-name company and Coca-Cola introduced the exact same beverage, which one would do better in the marketplace? Similarly, much of Apple’s fanatical customer following is due to the company’s expertise in and reputation for product design.

Amortization is the same basic idea as depreciation, but it applies to intangible assets.

the greater asset he acquired in the form of definite knowledge that an intangible impulse of thought can be transmuted into its physical counterpart by the application of known principles.

How do accountants measure the value of assets? For most fixed and long-term assets, such as land, buildings, and equipment, they begin with what you originally paid for the asset (historical cost) and reduce that value for the aging of the asset (depreciation or amortization). For short-term assets (current assets), including inventory (raw materials, works in progress, and finished goods), receivables (summarizing moneys owed to the firm), and cash, accountants are more amenable to the use of an updated or market value. If a company invests in the securities or assets of another company, the investment is valued at an updated market value if the investment is held for trading and historical cost when it is not. In the special case where the holding comprises more than 50 percent of the value of another company (subsidiary), the firm must record all of the subsidiary's assets and liabilities on its balance sheet (this is called consolidation), with a minority interest item capturing the percentage of the subsidiary that does not belong to it. Finally, you have what are loosely categorized as intangible assets. While you would normally consider items such as brand names, customer loyalty, and a well-trained work force as intangible assets, the most encountered intangible asset in accounting is goodwill. When a firm acquires another firm, the price it pays is first allocated to the existing assets of the acquired firm. Any excess paid becomes goodwill and is recorded as an asset.

Wisdom seemed an intangible asset,

Several forces can widen a company’s moat: a strong brand identity (think of Harley Davidson, whose buyers tattoo the company’s logo onto their bodies); a monopoly or near-monopoly on the market; economies of scale, or the ability to supply huge amounts of goods or services cheaply (consider Gillette, which churns out razor blades by the billion); a unique intangible asset (think of Coca-Cola, whose secret formula for flavored syrup has no real physical value but maintains a priceless hold on consumers); a resistance to substitution (most businesses have no alternative to electricity, so utility companies are unlikely to be supplanted any time soon).5 The company is a marathoner, not a sprinter. By looking back at the income statements, you can see whether revenues and net earnings have grown smoothly and steadily over the previous 10 years.

Millionaires and Billionaires buy assets, tangible, and intangible. Therefore, in most cases properties are bought alongside expensive cars, the value that is stored in such purchases has a higher interest in the longer term, even though some are depreciating assets and liabilities

Wisdom seemed an intangible asset, but an asset all the same, one that justified the risk.

A focus on measurable performance indicators can lead managers to neglect tasks for which no clear measures of performance are available, as the organizational scholars Nelson Repenning and Rebecca Henderson have recently noted.25 Unable to count intangible assets such as reputation, employee satisfaction, motivation, loyalty, trust, and cooperation, those enamored of performance metrics squeeze assets in the short term at the expense of long-term consequences. For all these reasons, reliance upon measurable metrics is conducive to short-termism, a besetting malady of contemporary American corporations.

Assets represent tangible items that the company owns such as cash, inventory, machinery, and intangible items such patents, copyrights, franchises, trademarks, and goodwill. Assets are classified into current assets; property, plant and equipment (PP&E); and other assets.

The Morioka region of northern Japan is famous for its horses and this festival was originally conceived by horse breeders who wished to pray for long and happy lives for their animals. It now features a parade of colourfully dressed horses ridden by local children with round 80–100 horses usually taking part dressed in konida costumes (worn by the horses of daimyo – feudal lords – in the Edo Period). The name of the festival comes from the noise made by the bells (chagu chagu) on the horses’ harnesses (umakko) and the event is designated as a national intangible folklore cultural asset. At the end of the parade, prayers are offered for a bountiful rice harvest and thanks are given to the horses.

If Blue Ribbon went bust, I’d have no money, and I’d be crushed. But I’d also have some valuable wisdom, which I could apply to the next business. Wisdom seemed an intangible asset, but an asset all the same, one that justified the risk. Starting my own business was the only thing that made life’s other risks—marriage, Vegas, alligator wrestling—seem like sure things. But my hope was that when I failed, if I failed, I’d fail quickly, so I’d have enough time, enough years, to implement all the hard-won lessons. I wasn’t much for setting goals, but this goal kept flashing through my mind every day, until it became my internal chant: Fail fast.

is good to remember ourselves that it is our intangible assets – our family and friends, interests and passions – that are ultimately the greatest source of lifetime happiness.

When you suggest that the client close at a loss... The words that I consider to have magical power in the sense that they make for a more easy acceptance of the loss are these: "Transfer your assets.

As you study the sources of growth and profit, stay on the lookout for positives as well as negatives. Among the good signs: The company has a wide “moat,” or competitive advantage. Like castles, some companies can easily be stormed by marauding competitors, while others are almost impregnable. Several forces can widen a company’s moat: a strong brand identity (think of Harley Davidson, whose buyers tattoo the company’s logo onto their bodies); a monopoly or near-monopoly on the market; economies of scale, or the ability to supply huge amounts of goods or services cheaply (consider Gillette, which churns out razor blades by the billion); a unique intangible asset (think of Coca-Cola, whose secret formula for flavored syrup has no real physical value but maintains a priceless hold on consumers); a resistance to substitution (most businesses have no alternative to electricity, so utility companies are unlikely to be supplanted any time soon).

Several forces can widen a company’s moat: a strong brand identity (think of Harley Davidson, whose buyers tattoo the company’s logo onto their bodies); a monopoly or near-monopoly on the market; economies of scale, or the ability to supply huge amounts of goods or services cheaply (consider Gillette, which churns out razor blades by the billion); a unique intangible asset (think of Coca-Cola, whose secret formula for flavored syrup has no real physical value but maintains a priceless hold on consumers); a resistance to substitution (most businesses have no alternative to electricity, so utility companies are unlikely to be supplanted any time soon). The company is a marathoner, not a sprinter. By looking back at the income statements, you can see whether revenues and net earnings have grown smoothly and steadily over the previous 10 years.

Farfetched,” I wrote. “But it seems worth shooting for.” This last line was wholly truthful. It was worth shooting for. If Blue Ribbon went bust, I’d have no money, and I’d be crushed. But I’d also have some valuable wisdom, which I could apply to the next business. Wisdom seemed an intangible asset, but an asset all the same, one that justified the risk. Starting my own business was the only thing that made life’s other risks—marriage, Vegas, alligator wrestling—seem like sure things. But my hope was that when I failed, if I failed, I’d fail quickly, so I’d have enough time, enough years, to implement all the hard-won lessons. I wasn’t much for setting goals, but this goal kept flashing through my mind every day, until it became my internal chant: Fail fast.

The second type of linear business model is a services company. Examples range from Oracle to JP Morgan to Jiffy Lube. These companies hire employees who provide services to customers. Generally, services companies fall in one of two camps. The first kind makes and sells physical services. Your car mechanic and plumber both fall into this category. The second builds human capital or intangible assets, like intellectual property, and uses those assets to sell specialized services.

A reputation for honesty and integrity is one of those “intangible assets” that pays off in ways we can never fully anticipate.

Companies should utilize the CSIPP™ framework whenever they face crises. The 12 elements of CSIPP™, or Crisis Solution Internal Philosophy and Practice, include: 1. Immunity (Immune Systems): Organizations, akin to living organisms, possess inherent vulnerabilities. The CSIPP™ framework advocates for the establishment of proactive and self-regulating systems within an organization which autonomously identify, respond to, and mitigate threats, thereby enhancing the organization's resilience and adaptability. 2. Surveillance: Organizations need to cultivate a culture of informed awareness. This entails the implementation of judicious surveillance mechanisms to gather both internal and external intelligence. Such insights empower organizations to preemptively identify potential risks and opportunities, enabling more agile and effective decision-making. Data serves as the lifeblood of CSIPP™. It is imperative that organizations prioritize the collection, analysis, and interpretation of relevant data. This data-driven approach facilitates evidence-based decision-making, informed risk assessments, and the optimization of crisis response strategies. 3. Decisiveness: Decisiveness is particularly important during times of crisis. Leaders must be able to gather and synthesize the data, and make quick and definite decisions to move the organization forward. 4. Capital Reserves/Liquidity: Financial preparedness is a cornerstone of crisis management. Organizations must maintain adequate reserves of liquid capital to navigate unforeseen challenges. Moreover, they should proactively identify internal assets, both tangible and intangible, that can be readily redeployed in times of crisis. 5. Communication: Effective communication is pivotal during a crisis. Organizations should establish a comprehensive communication plan encompassing all stakeholders - employees, customers, investors, and the community at large. This plan should ensure timely, transparent, and accurate information dissemination, fostering trust and mitigating the spread of misinformation. 6. Response: The ability to respond swiftly and decisively is critical in crisis situations. Organizations must develop well-defined response protocols that outline roles, responsibilities, and escalation procedures. Regular drills and simulations can enhance preparedness and ensure a coordinated response. 7. Risk Evaluation: A continuous process of risk evaluation and assessment is essential. Organizations need to proactively identify, analyze, and prioritize potential risks based on their likelihood and potential impact. This enables the development of targeted mitigation strategies and contingency plans. 8. Leadership: Strong and decisive leadership is indispensable during a crisis. Leaders must be able to make difficult decisions under pressure, communicate effectively, and inspire confidence in their teams. A clear chain of command and delegation of authority are vital for effective crisis management. 9. Readiness (Drills/Training): All individuals likely to be involved in crisis response should receive comprehensive training and participate in regular drills. This ensures that they are familiar with their roles, responsibilities, and the organization's crisis management protocols. 10. Post-Crisis Analysis: Following a crisis, it is crucial to conduct a thorough post-mortem analysis. This involves evaluating the organization's response, identifying lessons learned, and implementing corrective actions to improve future crisis management efforts. 11. Nuanced Adjustment: Crisis management is not a one-size-fits-all endeavor. Organizations need to be adaptable and flexible, adjusting their strategies and tactics as the situation evolves. 12. Protocol: Clear and well-defined protocols are the backbone of effective crisis management. Organizations should establish a set of standard operating procedures (SOPs) that outline the steps to be taken in various crisis scenarios.