Tangible assets (pillars) of a company
Cash/Receivables
Inventory
Investments
Property/Buildings
Vehicles/Equipment
Hardware/Software
Intangible assets (pillars) of a company
Mission/Vision/Values
Processes/Productivity/Training
Culture/Engagement
Strategy/Brand Recognition
Solid Customer Base
Good Customer Relations/Service
1975
83% of a company’s value was based on their tangible assets
17% of a company’s value was based on their intangible assets
(based on the S&P 500 research from Ocean Tomo)
Today
18% of a company’s value is based on their tangible assets
82% of a company’s value is based on their intangible assets
(based on the S&P 500 research from Ocean Tomo)
So why has an organization’s value reversed?
The answer is quite simple…you can duplicate the tangible!
Based on these percentages, it’s the intangibles of your organization that can differentiate you from your competitors.