Peter Drucker has introduced us all to the knowledge era, where knowledge is the primary resource and intangibles (intellectual capital resources and assets) are now largely recognized as the most important sources of organizations' competitive advantage. With the recognition of the importance of Intangibles comes the problem of how to properly identify them and assign them a value within the corporation. This is an area of concern in 5 fields: 1) accounting and financial reporting, 2) performance measurement and management, 3) valuation in the finance field, 4) the Human Resources field in terms of management, strategy, and planning, and 5) Intellectual Capital. Over the past eight years, over 25 methods have been proposed for the valuation of intangibles coming out of these 5 fields. In this book, Andriessen evaluates 25 existing methods of intangible valuation according to highly developed criteria. In performing his evaluations, Andriessen synthesizes the state of the art research from these fields based on extensive research. He then presents his own method for valuing intangibles, which he began developing and testing as a Senior Manager at KPMG Knowledge Advisory Services in The Netherlands. He relates six case studies in which this method was tested in actual companies, carefully reviews the results of his tests, and then concludes by offering a new and improved method for valuing intangibles in his Weightless Wealth Toolkit, a complete step-by-step process for identifying, valuing, and managing Intangibles to help managers operate successfully in the Intangible Economy.

Key Features

-Contains the only comprehensive and academically sound review and evaluation of existing methods for valuing intangible resources -Well-known author from KPMG in The Netherlands -Includes a do-it-yourself toolkit for valuing intangible resources


Academics, in the field of Intellectual Capital, such as the attendees at the McMaster World Congress on Intellectual Capital, professors and students in Knowledge Management MBA and PhD programs worldwide, Chief Knowledge Officers and other executives charged with valuing and managing Intellectual Capital and other intangibles. Secondary market: specialists in valuation of intangibles in finance, performance measurement and management in HR/Consulting.

Table of Contents

Table of contents Preface and Acknowledgements xix 1. Objective: Valuation and Measurement in the Intangible Economy 1.1 Introduction The Intangible perspective The transformation of the economy Seven characteristics of the Intangible Economy Drivers of the Intangible Economy The Intellectual Capital community Valuation and measurement of intangibles Value Valuation Four ways to determine value Objective and problem My objectives Problem to tackle Methodology Practicing management research as a design science Using the developing multiple case study Structure of the book 2. Methodology: The Science of Designing Practical Methods Introduction Making sense of the social world Distinctions make sense The world doesn't speak We know according to the way we are and the way we feel The social world does not sit still Social science Anything goes? How to test an empirical proposition How to test a practical proposition Bringing the two together Science follows its own rules Management research The subject of management research The scientific nature of management research My study The reflective cycle used in this study Difficulties in applying the reflective cycle The use of reconstructed logic 3. Legacy: Methods for the Valuation and Measurement of Intangibles Introduction What: Distinctions & definitions Intellectual Capital In


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"A most insightful knowledge navigation book on valuing intangibles. It is a very good state of the art overview 25 methods and also trying out its own refined model with illustrative cases. A recommended reading both for the practicioner as well as the researcher." - Leif Edvinsson, The world's first professor on Intellectual Capital and the worlds's first director of IC. Honorary Chairman Henley college KM Forum "Weaving a fascinating blend of sharp analysis and story telling Andriessen describes the journey of a passionate group of experts pursuing one of the most challenging and elusive riddles in modern business - how do intangible resources create value for the firm? This insightful and sweeping exploration of both the underlying questions and their numerous proposed solutions from other contributors in the field offers a wonderfully lucid overview of a complex subject. Andriessen's passion for methodologies that are coherent, rigorous and relevant is contagious. The Weightless Wealth Toolkit draws from the best available intangible valuation tools and methods but takes them to the next level, offering a powerful and original contribution. Whether you are new to the questions around intangibles or already well versed in the field, you will find this an indispensable reference and guide." --Verna Allee, author The Knowledge Evolution and The Future Of Knowledge: Increasing Prosperity through Value Networks. "In "Making Sense of Intellectual Capital", Dr Andriessen has produced one of the most synthesising books on this important but challenging topic. This book provides a very valuable overview and evaluation of the managerial tools available to managers when it comes to better managing their intangible assets. I highly recommend this book to any manger of a firm that is charged with extracting value from its intangibles." -- Goran Roos