Arnold Kling Summer Over the past several decades, our economy has come to be driven less by tangible inputs and outputs and more by intangible factors. As workers and consumers, we have become much more specialized than was the case years ago, when the conceptual framework of modern economics was developed. Yet most mainstream economists have not properly acknowledged this transformation, remaining committed to models and concepts that served to explain an economy that no longer exists. Understanding the world we now inhabit will require letting go of many established methods, and acknowledging the complexity of an economy that responds to new, and still evolving, strategies and incentives.
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Get Access Intangible Assets Essay Sample We can only imagine next generation of business if we can find the importance and growing of the Intangible assets in industry.
The tremendous growth and the level of critical data, documents either by email, fax, data transfer, cloud, or any channel of communication and knowledge are the major area and by protecting them, we can get sustainable competitive advantage.
In this study paper I will try to focus why the management of knowledge professionals and knowledge itself are so critical? If we see as per accounting norms then intellectual or intangible assets are set of either knowledge, development, services, etc. However, technically they have difference in the meaning.
Now days derived equation from Assets and Liabilities of the intellectual assets as a net figure can be questionable since business many times avoid the intellectual liabilities in consideration.
We also needs to consider that the wealth maximization for the organization is interrelated with knowledge and competencies of its employee.
The value of work force is now a days more intellectual assets value then the other Machine or other forms of creation by tangible assets.
In this communication and knowledge, era organizations need to more actively identify and measure their intangible assets. So that it is critically important that these intellectual assets are well explained as per goals and objective, theses needs to be properly managed and these needs to be part of strategic management process along with business blueprint.
The genral requirement for the success is that the ability to create or maximize the value from intellectual assets depends on the managerial skills, to source and control the assets, capabilities of the decision making, individual firms process and policies, and the implementation of business rules and strategies.
How th skilled and trained employee provide there service, knowledge. The organization can solve any business issue- problems who has well groomed, knowing, expert, and best in filed Human capital.
This is the only reseationhuman capital can leave an organization when people leave. Human capital also encompasses how effectively an organization uses its people resources as measured by creativity and innovation.
Since this are the intellectual properety, trade secrate, Inovation for the company and company has ownership along.
Sullivan Value Driven Intellectual Capital:Other vital intangible assets include big data, intellectual property and company culture.
The last one, in particular, is a driving force behind long-term growth and prosperity ; because of this, HR departments should actively invest in and promote healthy company culture.
—Any intangible assets correlated with computerization and these spe- ciﬁc organizational practices should also result in higher measured output in future years, .
A company’s soul is its personality, its culture, and the values by which it stands; derived from a company’s core beliefs, this intangible asset determines the effectiveness of strategies and the ability to achieve authenticity. Goodwill is an intangible asset recorded on the balance sheet when one business acquires another business and when the purchase price, or carrying value, is greater than the fair market value.
It includes the reputation, brand, geographic location, patents, employee commitments, and etc of .
Intangible Assets – There is no doubt about the fact that the human asset is the key intangible asset for any organization. In today’s dynamic and continuously changing business world, it is the human assets and not the fixed or tangible assets that differentiate an organization from its competitors.
(Source: Getting a grip on Intangible Assets, Harvard Management Update) In the past decade, there has been an increasing academic and corporate focus on the subject of intangible assets offering clarity to business leaders on the ways to measure and manage these assets in context of a business's strategic goals.