Why are intangible assets so important?
- They generate value: Intangible assets can increase profitability, market share and company value. A strong brand, for example, can attract more customers and enable charging higher prices.
- Differentiation: In a globalized marketplace, where products and services can be easily imitated, intangible assets can help companies differentiate themselves from the competition. An innovative culture, for example, can attract top talent and generate new ideas.
- Sustainability: Intangible assets can be a source of long-term sustainable competitive advantage. A strong reputation, for example, can be difficult to imitate and can protect the company from market fluctuations.
How can companies unlock the potential of intangible assets?
- Identify and measure: It is essential to identify and measure the company’s intangible assets. There are different methods to do this, such as residual value analysis or the revaluation method.
- Manage: Intangible assets must be actively managed so that they can generate value. This implies developing strategies to protect, develop and exploit them.
- Invest: Companies should invest in the creation and development of intangible assets. This may include investments in research and development, marketing, staff training or brand development.
In short, intangible assets are a fundamental source of value for companies. By understanding their importance, investing in them and managing them effectively, companies can unlock their potential and achieve sustained long-term success.
Examples of companies that have harnessed the power of intangibles:
- Apple: The Apple brand is one of the most valuable in the world. The company has built a strong brand identity through innovative design, exceptional user experience and effective marketing.
- Google: Staff knowledge is one of Google’s most important assets. The company attracts and retains the world’s best talent by offering a stimulating work environment, career development opportunities and attractive benefits.
- Amazon: Amazon’s e-commerce platform is an intangible asset that has enabled the company to become one of the world’s largest retailers. The platform offers a wide range of products, competitive pricing and a superlative shopping experience.
The future of intangible assets:
In the future, intangible assets are likely to become even more important for companies. Digitalization, globalization and the knowledge economy are creating new opportunities for companies that can harness the power of intangibles. For example as collateral or guarantees in the financing of operations, albeit with an increasing ability to distinguish those assets with real potential.
Companies that understand the importance of intangible assets and invest in them will be better positioned to succeed in the future.
