Tuesday, May 27, 2014

Intangible assets

I have been leading efforts on data analytics or the generic term big data, though I focus on the analytics part.  Tobin's Q has been rather an interesting aspect of analyzing the value of information for a company.  Manufacturing companies are valued against their hard assets, but then what about the global giants of the information age, which have come to grow bigger?

A good blog by Mr. Doug Laney, VP Research, Gartner on what is Tobin's Q and how it is impacting the valuations of the companies today.

"… a study by intellectual capital research firm, Ocean Tomo, shows that the portion of corporate market value attributable to intangibles has grown from 17% in 1975 to a whopping 81% in 2010."

Now, if there is any CEO out there still with their head buried in deep productivity gains through automation, and process improvement, they can see the sunset of their companies quickly coming.  The American automakers are the ideal examples.

The question is how do these companies gather data, turn it into information, yet information is not enough.  It is the creation of knowledge from information that leads to extraction of value.  The world is filing up with a plethora of massive data collectors though with minimal idea of how to transition from data to information to knowledge.  Opportunity remains high for analytics providers.

Read the complete blog here at Gartner.

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