Leverage Innovation

A blog by Thomas Hill

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A Way to Describe Intangible Assets

October 7th, 2008 · 2 Comments

Last evening at Network Appliances in Sunnyvale, I attended a meeting of the Former Deming Group (reunion of sorts), where Verna Allee, Principal at Value Networks, LLC presented the latest in trends in value network analysis.  She noted that while 80 % of corporate assets are now intangible, the reporting systems, financials and annual reports to shareholders present mostly information about tangible assets.  In my experience these reports are primarily rear-view mirror oriented and do not tell the investor or management about where the business is heading. Allee described a new $50M initiative by the SEC (good to see the Securities Exchange Commssion taking a lead here) on a way to describe both tangible and intangible assets of a corporation via a new information language called the Extensible Business Reporting Language (XBRL).  

XBRL is an XML language specific to business reporting, where named tags setup a way to access key reporting information.  Thus, all XML supported content can be linked by the tag and found for reporting purposes.  Allee presented an example at Boeing where they were able to solve a problem of simultaneous testing of aircraft by using a process of Lean process description, followed by value network analysis (mapping of the perceived value exchange between at least two employees), then value streams and finally into business process workflow.  She announced that Value Networks is making value network analysis tools available for managers - a key focus of their business.

The creation of XBRL, value network analysis, ethnographic study (day in the life of), user councils, and Web 2.0 social media offer the innovation applications team a host of tools and services to make an impact on the value creation processes of the company.  We need more of these types of tools, let me know ones you like and I’ll highlight them here. 

Tags: Intangible Assets

2 responses so far ↓

  • 1 Freddie McMahon // Oct 15, 2008 at 12:20 am

    Intangibles: Measuring Knowledge as a Working Asset

    One of the most important intangibles is knowledge yet it is the least understood in terms of intangible measurements. Yet we are now well within the knowledge economy!

    Decisionality has developed artificial intelligence agents designed to acquire, apply and measure knowledge as a working asset.

    ai agents use scripted conversations with humans.

    ai agent conversations are automatically captured and analysed.

    The smallest measurement is the dialogue-step. A decision-string consists of the dialogue-steps within a single ai agent conversation.

    Though a decision-string is one dimensional data, its true value is the aggregation of patterns, flows and outcomes.

    This approach brings tangibility to the intangibles of knowledge as a working asset.

    For further information

    Diagrams for above (see picture at http://thefutureofartificialintelligence.blogspot.com/2008/10/ai-111-intangibles-measuring-knowledge.html )

    More information about ai agents can be found at www.decisionality.com

  • 2 KattyBlackyard // Jun 14, 2009 at 7:08 pm

    The article is usefull for me. I’ll be coming back to your blog.

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