The Management of Intangibles: The Organisation's Most Valuable Assets

The Management of Intangibles: The Organisation's Most Valuable Assets

The Management of Intangibles: The Organisation's Most Valuable Assets

The Management of Intangibles: The Organisation's Most Valuable Assets

Synopsis

This comprehensive volume provides an integrated and original approach to intangible resource management and an evaluation of its contribution to the establishment of competitive advantage in the market place.

Excerpt

Old financial maps that we find in many key institutions and offices are like the old maps stored in museums which highlight industrial areas, farming areas, housing etc. How much can such maps help us to understand the knowledge economy and its intangibles? Who will take the responsibility to visualise the new financial map? This book about intangibles and the management of intangibles is an important contribution towards answering these questions.

Currently the financial map is cracking, just as the navigation map did 300 years ago for the British Navy. Can we learn from history?

One of the largest corporations in the US, Enron, has recently collapsed, like a ship in the fog. It is said to be the largest liquidation of assets in corporate history. The lessons for managing intangibles might be as profound and long lasting as the solution of the longitude problem 300 years ago. According to research by Senator Joe Lieberman, almost 70 per cent of the financial analysts who followed Enron were still recommending purchase of the stock when the US Securities and Exchange Commission had started to investigate the case.

Not only the analysts but also the accountants and auditors are now being blamed for the economic mis-navigation. Uncertainty and confidence for our economic value navigation are now diffusing, with implications for future wealth creation, not only at the corporate level but also at the social level.

The collapse of Enron, WorldCom and Merck highlights the short-comings of the old accounting system as well as accountancy-based management for modern society. It points towards serious problems of reporting and assessing the corporate potential of intangibles. The analysts and investors have to 'guess' the value of intangibles because of a lack of information. This approach is often referred to as sentiments instead of fundaments, with the increased volatility and risk of the Stock Exchange. The collapse of Enron has therefore eroded not only the accounting firm Andersen but also the entire accounting profession and has brought its trustworthiness into question.

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.