Value Driven Intellectual Capital: How to Convert Intangible Corporate Assets Into Market Value

Book Description

How do firms like Hewlett-Packard, DuPont, Dow Chemical, IBM, and Texas Instruments routinely convert the ideas of their employees into profits that sustain the corporation?

How can buyers and sellers calculate the assets of the acquired firm in a merger or acquisition?

How can an organization affect the firm's stock price using the leverage of intellectual assets?

Identifying a firm's assets, especially its intellectual assets-the proprietary knowledge expressed as a recipe, formula, trade secret, invention, program, or process-has become critical to a company's overall vision and strategic plan and essential in such transactions as stock offerings or mergers. In the era of the knowledge-based company, where the firm's genius and future lies in its ideas, a firm's collective know-how has become a measurable commodity-and as much a part of its bottom line as the condition of its cash investments, plant, and equipment. Extracting and measuring the real value of knowledge is essential for any corporate head who knows how high the stakes have become for corporate survival in the information age-where the innovative idea is as good as, if not better than, gold! Value-Driven Intellectual Capital is a corporate and financial executives' handbook to the new world of intangible assets-what they are and how to convert them into cash or strategic position. Written by one of the seminal thinkers in the field, and the key organizer of the ICM Gathering, a group of leading-edge knowledge-based companies, Value-Driven Intellectual Capital explains the new, boundary-expanding world of intellectual assets-where translating an innovative idea into bottom-line profits involves a tightly focused strategy with clear directives for making it happen. A blueprint for turning corporate knowledge, know-how, and intellectual property into a sustainable competitive weapon that will build a firm's reputation and market share, this practical, insightful book outlines:
* Basic concepts underlying IC (intellectual capital) and corporate value creation
* The linkage between IC, business strategy, and profits
* The different kinds of value-including qualitative and quantitative -firms realize from their IC
* Activities required to produce the value firms desire from their IC
* Methods for calculating the dollar value of companies-for market capitalization and mergers or acquisitions
* An economic model of an IC company

The book's appendix is a valuable distillation for corporate and financial executives, managers, researchers, and analysts of IC's basic working concepts and definitions, including the principles underlying value creation and value extraction, the concepts and strategies used by successful companies, the sources of value for knowledge companies, and the mechanisms used to convert that value into real profits. And since it is managerial talent that turns intellectual property into business assets, the book provides an arsenal of key concepts, methods, and processes for aligning with and using intellectual property as an active element of a firm's business strategies. It concludes with a discussion of how value is extracted from human capital, focusing on its elusive magnetic core: creativity and productivity. In an era in which firms are increasingly accountable to shareholders and success is judged solely by stock price, knowing how to measure and extract the value of a firm's intellectual assets has become one of the most critical and essential skills needed by CEOs today. Reflecting the most innovative thinking from some of the most sophisticated firms in the world, Sullivan's Value-Driven Intellectual Capital is a manifesto, a clarion call to excellence for any corporate or financial executive, merger and acquisition partner or investor who understands how much future corporate survival and success depends on the simple enduring genius of a good idea and the need to convert those ideas into corporate value.

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Customer Reviews:

Non-Quantitiative & of Limited Value.......2002-05-24

For individuals actually interested in quantitative measurements of intellectual property value, this book is largely a waste of time. The text is full of a lot of business school "value creation" idealism and has little practical value in my opinion. Indeed, for those really interested in valuing intellectual property and intangible assets, see the associated book by Gordon V. Smith and Russell L. Parr. This text has everything you are looking for and this book is unnecessary.

Good quick Introduction.......2001-03-18

This book has its good points and its bad points. The good thing is that it is very well written, concise and easy to read. It brings important points to light and is a good start at dealing with a large complex issue. The bad aspect is that the book tends to rely on the experience of the author in developing the models that are at the heart of the book, rather on validated and tested truths.

A good place to start....

An invaluable introduction to IC Management.......2000-07-17

"In 1999, CEO Magazine and Arthur Andersen hosted a roundtable luncheon for CEOs interested in discussing intellectual capital (IC) and its impact on the firm as we know it. The luncheon drew 17 CEOs representing both manufacturing and service industry companies. All were intrigued by the potential hidden value that the intellectual capital perspective suggests lies untapped within their businesses, but none knew what kinds of value they could obtain from their company's intangible assets or how they might go about it. They just knew that there was hidden value in their companies and that it was somehow wrapped up in the thoughts, skills, innovations, and abilities of their employees. They wanted to learn more about this value: how to harness it, direct it, and extract value from it. This book is written for those CEOs and for anyone else who wants to know how to extract the hidden value that resides within the firm's intellectual capital. As of this writing dozens of firms actively engage in extracting value from their IC. The people directing the activities for these firms have formed a community (called the ICM Gathering) to share their ideas and success stories. With the expectation of a very few proprietary bits of information that could be useful to competitors, these firms are willing to share their knowledge, and this book draws heavily on their experiences. The purpose of this book is to help businesses profit from one of their most important assets, their intellectual capital" (from the Introduction pp.3-4).

In this context, Patrick H. Sullivan divides his book into three major parts as follows:

I. The Relationship Between Intellectual Capital and Corporate Value (Chapters 1-4). In this part, he basically:

* defines and discusses intellectual capital and its importance, and outlines some of the basic concepts underlying corporate value.

* describes a three-dimensional IC framework that reveals the IC aspect of the firm, and outlines the four key elements of the IC framework.

* discusses the kinds of value that intellectual capital provides to the firm, including direct and indirect, offensive and defensive, and internal and external value.

* discusses the ways managers may determine which activities are required to produce the firm's anticipated IC value.

II. Valuing Knowledge Companies (Chapters 5-7). In this part, he basically:

* discusses the concepts that underlie determining the amount of value that intellectual capital has for an organization.

* discusses the quantitative value of knowledge companies in two different kinds of situations: the value as a going concern (the stock market value), and the value in a merger or acquisition scenario.

* discusses the following questions: When determining how much to pay for a knowledge company being acquired, how does the potential purchaser make the calculation? Is the frame of reference an accounting or financial one? Or is it an intellectual capital one?

III. Managing Intellectual Capital (Chapters 8-12). In this part, he basically:

* describes the key elements involved in extracting value from intellectual property, including key decisions and decision-making processes, including who is involved, what information is needed by the decision-makers, what work processes are necessary to provide this information, what databases are needed to store the information, and how each decision will be implemented.

* discusses the similarities and the differences between intellectual property and intellectual asset and the implications this has for the intellectual capital management process.

* describes the relationship between knowledge, knowledge types, and intellectual capital, and introduces the relationship between knowledge and profits, the concept of value creation and value extraction.

* discusses management of the firm's core human capital and how they may be best employed.

* identifies the steps required of companies that want to implement and intellectual capital management capability.

In addition to these three parts, to reinforce the reader's knowledge, he discusses basic intelectual capital management (ICM) concepts and definitions, and provides a brief overview of the evolution of ICM as a working discipline in the appendix.

I highly recommend this invaluable study to all executives and HR practitioners.

A great place to start.......2000-07-07

I found this book very helpful for people in organizations that are complex. For small companies, sometimes we take for granted that managing human capital can be as easy as yelling over the top of a cube wall, and that applying for a patent can be amonumental achievement. But in companies where these things are routine, and systematic approaches are needed, Sullivan seems to present some credible, sound logic towards hot to approach these problems. This is not a how-to book, but returns to business management fundamentals to lay the ground work for an approach. There are no how-to books in this field, but this is an area that requires thought by readers, and Sullivan doesn't presume to know all the answers and detail. I have already applied many of the principles he presents in this book in my own company.

Value-Driven IC.......2000-07-02

This was an extremely disappointing book. Given Dr Sullivan's credentials, I was disgusted with the lack of substance within the book. For example, having stated that Financial analysts heve not given sufficient thought to developing a valuation approach to knowledge companies, and that the presented framework can be used in IC valuation, I didn't expect to be presented with several pages of "Price is the amount a purchaser is willing to pay..Cost is the amount of money required to produce an item." Believe it or not, most of us knew this already.

Be prepared for plenty of insightful and leading edge pearls of wisdom: "Parents are often asked by their child 'How much do you love me?' ..tends to fall back on answers like 'A lot!'. The point is that some things, even very important ones like love, do not lend themselves to accurate or quantifiable measurement."

It appears that Dr Sullivan didn't have anything knew to contribute and filled the book any way he could.

To assume that the book is providing anything useful to semi-educated personnel is merely patronising.

Average customer rating:
Value Driven Intellectual Capital: How to Convert Intangible Corporate Assets Into Market Value
Patrick H. Sullivan
Manufacturer: NY
ProductGroup: Book
Binding: Hardcover
ASIN: B000MUA7HY

Book Description

This book, written by the leading experts in the field, offers a comprehensive look at the factors behind the remarkable growth in employee stock ownership plans (ESOPs) in public companies over the past few years-plans which now own nearly half of all the assets owned by ESOPs. The contributors discuss the legal and financial structure, actual uses, and practical implications of ESOPs in publicly held companies, demonstrating how ESOPs can be an effective means of both improving corporate performance and discouraging hostile takeovers. Particular attention is given to the actual impact of ESOPs on companies, shareholders, employees, and taxpayers. Throughout, the discussion is enhanced by the use of detailed case studies of major public-company ESOPs. Following a general discussion of the structure and uses of ESOPs, the contributors focus specifically on the implementation of ESOPs in public companies. Detailed coverage of the financial structure of ESOPs includes information about the public market for ESOP notes, the role of convertible preferred stock in public-company leveraged ESOP transactions, combining ESOPs and 401(k) plans, and ESOPs and corporate control. Subsequent chapters explore such issues as the use of ESOPs as a takeover defense, valuation in public companies, divesting a subsidiary through an ESOP, managing an employee ownership company, and the impact of the 1989 Budget Reconciliation Act on public-company ESOPs. The final chapter assesses the future of employee ownership in publicly traded companies. Numerous tables and figures amplify points made in the text. Employee benefits consultants, commercial loan officers, and human resources executives will find this book an indispensable resource.

Book Description

The XIII International Plant Nutrition Colloquium is the latest in a series which commenced in 1954. It is the first in Asia and possibly the last in the 20th century. This volume of the Proceedings begins with two keynote papers which review achievements in the field of plant nutrition and crop production in this century and discuss future developments in the science and in our society. Recent advances in plant nutrition are reviewed by three other invited papers from the aspects of innovative research technology, molecular biology and rice physiology. Nearly 300 shorter papers report and discuss important findings in plant nutrition: mineral function, ion transport, molecular biology, deficiency and toxicity tolerance, diagnostic techniques, root function, N fixation, microorganisms, rhizosphere, fertilizer, environmental pollution, organic wastes, rice physiology, N and S metabolism, dry matter production and crop quality. Readers will gain an appreciation of current knowledge in all the aspects of plant nutrition relating to sustainable food production and the environment.

Book Description

Biological order in all living creatures is a fascinating phenomenon. Biochemical reactions and biophysical processes including enormous amount of various entities and structures are coordinated in space and time resulting in highly organized dynamic system with self control. The book consists of analysis of biophysical mechanism of long range interactions based on polar vibrations in microtubules and in actin filaments in cytoskeleton, spectral energy transfer in non-linear systems, excitation of a state far from the thermodynamic equilibrium in systems with energy supply, transition from incoherent to coherent vibration states, generation of endogenous electromagnetic field, information transfer between vibration systems, and interaction energy of vibration systems. The Fröhlich vibration system is used.

Book Description

Glow Discharge Optical Emission Spectrometry (GD-OES) is rapidly becoming one of the most important techniques for the direct analysis of solids. This, the first book entirely devoted to the subject, represents the combined contributions of over 30 specialists from around the world. All contributors are active in the field and recognised internationally for their expertise and knowledge in GD-OES. The book begins with an introductory overview of the subjects, deals with the design of the instrument, its operation and analytical methods and describes in detail the complex plasma processes which occur inside the glow discharge source. The second part of the book is more practically orientated, showing the full range of uses for GD-OES from the bulk analysis of virtually any solid material to depth profiling within the first tens of micrometres of a variety of surfaces and coatings. Glow Discharge Optical Emission Spectrometry is intended for a wide audience of scientists, engineers and postgraduate students and will be a valuable and challenging reference work for both experienced users of the technique and newcomers alike.

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Quantitative Surface Depth Profile Analysis Using Glow Discharge Optical Emission Spectrometry
Marshall
Manufacturer: John Wiley & Sons Inc
ProductGroup: Book
Binding: Hardcover

General & Reference | Chemistry | Science | Subjects | Books

Book Description

It's a case of missing kid and missing kitty when Kinky Friedman, private dick extraordinaire and animal lover nonpareil, attempts to find a young, autistic New York boy and a three-legged Texas cat named Lucky, both of whom have disappeared.

Something is rotten in both the states of New York and Texas, and Kinky takes it upon himself to locate not one, but two of God's creatures who have gone astray. Dylan Weinberg is an eleven-year-old boy with a rare form of autism -- a pint-sized stock-market wizard who can only utter one word, "Shnay." He's on a multitude of medications, and one night his father wakes up to find Dylan perched over his bed like some preteen zombie, clutching a pair of scissors and cutting up the sheets. Since that evening, two weeks ago, Dylan has been missing, and the cops have no leads -- and apparently not much interest. That's why, in an absolute last-resort maneuver, the family has called in Kinky to the rescue.

And speaking of rescue, Kinky's second missing person -- make that missing pussy -- case comes courtesy of his Cousin Nancy (no relationship), who, along with Kinky, helped found the Utopia Animal Rescue Ranch in Utopia, Texas. Lucky, the three-legged cat -- and unofficial mascot of the ranch -- is gone, the victim of an apparent kittynapping. Cousin Nancy is convinced the feline is either in the hands of some nasty, contentious neighbors or is being sacrificed by a satanic cult. No matter what, she wants Kinky to find Lucky before he becomes coyote chow.

It's an uneven dilemma for Kinky -- stay in town and concentrate on finding a sick, missing child (and concentrate, too, on Julia, said child's beautiful, long-legged sister), or hotfoot off to Texas, to help calm down the frantic Cousin Nancy who's this close to proclaiming Lucky's been abducted by aliens. Kinky puts his trust in his faithful companion, Village Irregular Steve Rambam, to help find the little boy while Kinky hightails it to Utopia, Texas, where Nancy provides him with two witnesses to the alleged crime -- a dim-sighted eighty-year-old lady named Josephine and a frisky canine named Mr. Magoo.

Back in New York, Rambam has no clue where Dylan might be, but he is becoming increasingly sure that Julia is the Jewish answer to his romantic prayers. Kinky warns him to put the wedding plans on hold and track down Hattie Mamajello, Dylan's former nanny, but it's too little too late when Hattie is pushed off a subway platform and killed. The confusion generated by these two disparate cases is enough to drive a dick to drink -- which Kinky is happy to do -- but he's still got a missing kid and a missing kitty on his cigar-stained hands to locate before (a) Rambam whisks Julia off to Vegas for a quickie wedding and (b) Cousin Nancy calls in the FBI, the CIA, and the Mossad to find her Lucky.

Meanwhile, back at the ranch, aided and abetted by a few four-legged friends, the mystery of the purloined kitty continues to grow. Then it's back to the wilds of midtown Manhattan and the even wilder wilds of Sche-nectady, New York, where, in their search for the missing boy, Kinky and his two-legged cohort find themselves at an orphanage Dickens would be proud of.

True to Kinky's form, and informed with truth, Meanwhile Back at the Ranch is a wild and woolly (and furry) ride from a true original, and entertainment at its most outrageous.

Customer Reviews:

Perfect gift for the Jewish animal-lover on your list.......2004-04-07

Not my favorite Kinky Friedman book, but still pretty humorous.
Perfect gift for the Jewish animal-lover on your list - a
fun Mother's Day present, maybe.

Fun and Enjoyable.......2003-06-27

This was the first Kinky Friedman book that I have ever read. I picked it up at the library after hearing that he was an "interesting" author in a few magazine write-ups. I must say that I was pleasantly surprised.

This book reads very well and VERY quick. The characters portrayed in the book are full of quirks, ticks, and other little nuances that add to their personalities. As the story moved on, I found myself laughing out loud at quite a few pages and at the same time, still being intrigued at the mystery. You don't find a lot of mystery books with a twist like that.

Kinky Friedman succeeds in this book by not taking himself too seriously and at the same time tells an in depth story. Pick it up... you'll be glad you did!

If this book were food, it would be a Kinky salad.......2003-01-03

Private detective Kinky Friedman enjoys a bushel of bafflement slogging through two different cases, pulling him hither and yon between two different cases as he works to find both a missing cat (Texas) and an autistic child (New York). I have been, still am and will continue to be a Kinky fan, and given this I must say it was a great book, but not the pinnacle of Kinky-dom. Other reviews I've read were very positive and the bit of negative criticism questioned whether he had abused his characteristic sayings, such as "cradled the blower" or "left the cat in charge." To me these were welcome, worn-in witticisms, but I did feel the amount of name dropping seemed a bit awkward if not possibly forced. I was also disappointed to find out that his reference to Asperger's Sydrome, the specific form of autism which the missing child had, was lacking - his account was historically correct, but the child supposedly having this syndrome had a vocabulary of a single word, though I have read a paper from psychology referring to the same syndrome as a form of autism which leaves verbal skills mostly unaffected and is manifest primarily through behavior. My last concern was how much the story was used as a platform for the Utopia Animal Rescue Ranch (the missing cat thread to the story.) Any Kinky fan knows that he has strong political opinions and thankfully does not refrain from expressing them and admittedly the Rescue Ranch is a worthy cause, but there were isolated moments when the story felt almost didactic to me. That said, I immediately acknowledge it to be specific, nit-picky criticism, but worth the words since I'm the sort of girl who waits with bated breath as the villain is revealed on Scooby Doo - if these occurred to me, of all people, I'm pretty sure I won't be alone. All in all, I would read it again and it only makes me more anxious for the next Kinky installment - I have my fingers crossed for an entrée this time.

More Kinky views of life and the strange folks who live it.......2002-11-08

Private detective (and former musician) Kinky Friedman finds himself torn between a missing three-legged cat in Texas and a missing autistic child in New York. The cat comes first and Kinky heads down to Utopia, Texas for some good-ole-boy moments, but his duty calls him back to New York where his recurring pal Rambam demands to be made part of the case (Rambam also thinks he might have found his future bride--the sister of the missing child and an obvious suspect). Using visions, both his own and others', and some clever detecting Kinky strips away some of the confusion--but can either a three-legged cat or an autistic child survive for long on their own--either in the wilds of Texas or those of New York?

Fans of the Kinky Friedman series will find a lot to enjoy in MEANWHILE BACK AT THE RANCH. Kinky's observations about life in general, his descriptions of the customs and people he meets, and his insights into human nature ring true. Kinky's strange similies will bring a smile to even the most jaded reader (maybe especially to the jaded reader). And Friedman goes out of his way to be an equal opportunity offender, slinging insults at all religions and ways of life.

Kinky Friedman books are not for everyone but MEANWHILE BACK AT THE RANCH is one of the better ones.

Kinky's Ranch-Flavored Manhatten Mystery.......2002-10-10

God bless Kinky Friedman, member of the country-freak outfit the Jewboys and author of 15 novels. There've been stalls in the series, poorly executed plotlines, and inexcusable scatalogical humor. Yet, Friedman's detective series based not-so-loosely on himself and his friends, is as fresh as ever with Meanwhile, Back At The Ranch.

I enjoyed Friedman's other Texas adventures, although I'm not sure if readers like seeing him spend an entire novel away from his home base of New York City. Here we get a perfect mix, as Kinky is balancing several mysteries at once, and one of them sends him down to the Texas hill country to team up with a dog to find a cat. Yeah, I know...but it's hilarious. Just read it.

The NYC portion of the book has a storyline that is slightly more of a serious nature, and Rambam (one of the more serious Village Irregulars) is brought in to help out with the rough stuff. An autistic child is missing and a serial killer is on the loose, although any regular Friedman reader knows that the solution to the mystery is often not of great import.

Speaking of sidekicks, why is Ratso only onboard for a page or two? Perhaps real life Larry "Ratso" Sloman's success with the reissue of his Bob Dylan book will thrust him back into Kinky's universe. Sorry, I miss him.

While Kinky's rants on life have tamed some over the years, he's maintained a personal touch that connects with people. It's a short book (like the entries before it) and can be read in a short afternoon. Expect more Willie Nelson than Ellery Queen.

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