"Intangible Management
is the most compelling
evidence yet that the
knowledge based economy
is upon us. By making
use of existing
accounting principals,
Intangible Management
has shown how
attaching financial value
to intangibles helps
organizations to realize
their true competitive
advantage in the
market place.
Intangibles that have
long been overlooked
by traditional
financial accounting
include Knowledge Assets
and Relationship assets."  
 Torben Anderson,
CEO, Alphaport Ltd ,
KM Delivery and
Advisory Services,
United Kingdom

“Charles Darwin said
that for species to
survive, it has to
be adaptable to change.
In the business world,
this translates
to an organization’s
nimbleness in adapting
to changing customer
demands, the external
 environment as well as
 nurturing a culture
of constant innovation.
 Intangible Management
provides executives with
the skills required to
better manage risks
and create value
for all stakeholders
in rapidly changing
competitive environments.” 
Eric Goh, Managing Director,
HP Asia, Singapore

“By using intangible
management we can
release energy and
capture efficiencies from
people that previously
we could only dream of.” 
Frank Olsson, General Manager
of NAB Japan.

“Intangible Management
solves several of the
most pressing challenges
of the internet age,
namely the systematic
identification, objective
valuation, scientific
management and
structured financial reporting
of all forms of intangibles.
These developments rival
the development of
accounting, finance and
economics and will
fundamentally reshape
management and valuation
theory.”  Jonathan Liew, Deputy
Director, Internal Audit,
JTC Singapore

Approximately 70% of the population is employed in the creation of services.  Services are intangible goods as they involve the creation of expectations and perceptions, rather than products that can be "touched or held".   The diagram below shows that around the world, most people are employed in the services sector of the economy.

Gross Domestic Product (GDP) represents the wealth of a country. Wealth only grows if revenues of companies grows as well as employment.  Around 70% of the GDP of advanced economies is directly related to service employment.  The bulk of new employment, and economic growth occurs in the services sector, and this is expected for many years to come.  In the United States, 80% of its GDP comes from the services sector.

 

Conclusion:  More than 70% of organizations are service sector organizations.  These organizations produce and/or sell expectations and perceptions to clients.  If you do not understand intangible value, you will be out-competed, out-sold, and out-produced by organizations that do.

Today, investors pay little attention to tangibles when investing in publicly traded corporations.  In fact, across the US stock market approximately 70% of the value of not recoded by the balance sheet (book value) of the firms.   The table below illustrates that some firms have intangible value in excess of 90% of their "accounting value".