The Future of Capital

Mastering value creation in the knowledge economy demands an appreciation for the pivotal role of intangible capital and a thorough understanding of network dynamics.

One of the most challenging questions for modern business people is, “How can we convert intangible assets such as human knowledge, internal structures, ways of working, reputation, and business relationships into negotiable forms of value?”

Intangible assets are converted into value when, for example, an asset such as ‘professional expertise’ is converted into another form of value such as ‘consulting services.’ The conversion dynamic also applies to value realization: when a tangible value input such as ‘purchased market intelligence reports’ is converted into a non-financial knowledge asset of ‘increased levels of marketing competency.’

This paper will show value network analysis offers a way to model, analyze and improve an organization’s capability to convert both tangible and intangible assets into other forms of negotiable value.

Value Network Analysis: Value Conversion of Tangible and Intangible Assets