1. By Richard E.S. Boulton, Barry D. Libert & Steve M. Samek

2.   How successful businesses are creating value in the New Economy.  What companies can do differently and how to create long-term value out of their asset-mix.  The New Economy? One where information-rich goods & services make up the greatest proportion of GDP  One where information workers constitute the majority of the work force According to the authors, today’s economy is built on the foundation of: New technologies Globalization New generation of people entering the workplace Increased importance of intangible assets What is the book about?

3.  A global revolution is changing the business;  The structures of companies are changing  Relationship between companies are changing  The definition of success is also changing as more and more emphasis is put on intangible assets like information & relationships between market players. Cont;

4.   Based on a three-year study of 10,000 companies by Arthur Andersen.  Used to determine how well a corporation is taking advantage of its asset capabilities.  Rates the contribution of assets and helps corporations leverage all assets for driving higher value.  Distinguishes the relationships of how assets add value in combination with one another.  Recognizes that assets are not fully controlled by the corporation – customers, suppliers, partners, etc.  Uses a much broader definition of assets (beyond the accounting model) for creating value. The Value Dynamics Framework

5.   Assets have inbound and outbound relationships ; customer assets are outbound whereas employee assets are inbound (convert resources into products and services)  All assets have outputs – Organizational assets (systems, information, etc.), Financial Assets (cash flow, etc.)  By Understanding the r/ships btn these different Assets, we “ Crack the Value Code ” Basic Principles Behind the Value Dynamics f/wk

6.  The Value Dynamics F/wrk

7.   Value Creation ; future value captured in the form of increased market capitalization both with tangible and intangible Assets  Value Realization ; value captured in the form of past and current earnings or cash flows.  Value Dynamics ; New set of tools developed to create value in the new economy. Management of change concepts

8.  Drivers of Change:  Globalization: The world is a smaller place today  Technology: this has transformed the operations of many companies e.g. revolutionalization of communications Effects of Change:  Intangible Assets: an increased importance & use  Emergence of new business models that combine both old & new economy assets  New business risks : resulting from new technologies, new transactions, new market players in the new economy.  The war for Talent : p’ple & their skills/ideas are the prime resource in the new economy Management of Change Concepts cont’d

9.  Adaptation Mechanisms  Business model redesign: Companies can redesign the business model to suit the demands of the global economy.  Re-organization & Repositioning: to suit the demands of the new economy  Emergence of new business Strategies: e.g. diversification, mergers & acquisitions (Coca-cola & PepsiCo in the 1980s) Management of Change concepts cont’d

10.   Discover the right Asset mix : Companies in today’s super-heated economies need to discover the underlying code of value creation to find out which combinations of assets – tangible and intangible, creates the greatest amount of economic value and to avoid those combinations that destroy it.  Recognize the value of intangible assets e.g. employee knowledge, r/ships, brands, processes etc.  Embrace the Value Dynamics framework(VDF) in strategic planning and management  In the new economy managers must think of competition in terms of competing business models, whose power comes in part from how the assets within their portfolios interact Lessons Learnt

11.   Transparency of information is vital to value creation  The use of Information-based strategies for real-time management reporting: thru the use of data-warehousing  Employees’ attitudes and sensitivities towards change is very important in determining the success of the company or organization.  There is need to master business risks as a result of the emerging new business models by the different companies to be able to stand competitively in the new economy  Smart Asset management if businesses are to succeed in the dynamic environment Lessons Cont’d

12.   Q & A  Comments/feedback  THE END. Thank You