Post on 22-Apr-2015
description
bengin
1
© 2009 benginMapping values
benginAdvanced Tools for Visualizing,
Measuring and Managing Intangibles
5th European Institute for Advanced Studies in Management (EIASM), Workshop on
Visualizing, Measuring and Managing Intangibles and Intellectual CapitalDresden (Germany), 8-9 October 2009 – © 2009 peter.bretscher@bengin.com – www.bengin.net
bengin
Speaker
2
© 2009 benginMapping values
Peter Bretscher,Founder and owner,Engineering Office for Business DevelopmentIngenieurbüro für Wirtschaftsentwicklung, Eggersriet / Switzerland
Function in the Ing.Büro: Advisor to organizations in the design of economic steering and management systems that integrate the intangible perspective
Engineering background (worked 20 years in several functions along the whole value chain of an international R&D and manufacturing company based in Switzerland)
Developed over the last 20 years the “Business Engineering System” (Tools for Business Administration)a MindSet and models for structuring and quantifying the tangible and intangible resources.
In addition he is supporting companies, consultants, and other organizations in innovation and project management, in intellectual property and patent management, and in setting up business plans and defining enterprise strategy
He has initiated and is leading the “bengin” project. Its mission is to facilitate the awareness for and further development of management concepts that enhance the traditional economic model
Since 1994 he is teaching business engineering und business planning at the University of Applied Sciences in St. Gallen, Switzerland. E-Mail: peter.bretscher@bengin.com, Website: http://www.bengin.com/, Blog: http://www.bengin.net/wp/, Twitter: http://twitter.com/peterbretscher
bengin
Agenda
Development of Economy
Innovation of Products- and Economic MindSet as a Product
Two Outpaced Paradigms
The Vector Solution
Conclusion and Outlook
© 2009 bengin
3Mapping values
bengin
Development of economic assets
4
© 2009 benginMapping values
Relative significanceof economic goods
100
60
80
40
Low middle high state of economic development
20
intangible goods
tangible goods
bengin
Development of Business Offerings
5
© 2009 benginMapping values
Development of Business Offerings
Business offerings(percentage)
100
60
80
40
20
Low middle high state of economic development
Services
Licensing
Products
bengin
Summary
This are two developments we see in the real reality. Intangibles are (and will be) more and more important.
Intangibles in a form of knowledge (use-how, make-how, think-how) and in a form of intellectual property rights.
In order to enable a sustainable development we need an enhanced theory that has the means for structuring and quantifying this (new) reality.
6
© 2009 benginMapping values
«Many of the patterns of nature we can discover only after they have
been constructed by our mind.»
Friedrich von Hayek
bengin
Agenda
Development of Economy
Innovation of Products- and Economic MindSet as a Product
Two Outpaced Paradigms
The Vector Solution
Conclusion and Outlook
© 2009 bengin
7Mapping values
bengin
Idea to Innovation
Phase of incubation: 70%
Phase of invention: 25%
Phase of innovation: 5%
Examples:Concrete 40 28 20 yearsInforced concrete 22 7 18 yearsAluminium 29 53 26 yearsTelephone ? 14 2 yearsRadio 56 13 2 yearsRadar 29 2 1 yearsTV 22 22 8 yearsComputer 115 9 5 yearsICs 40 2 3 years
© 2009 bengin
8Mapping values
bengin
Development of Business Theory(S-Curve of Product Development)
9
© 2009 benginMapping values
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Additional:
· Intangible Assets· Subjective Value Metric
Mises
bengin
Three Worlds – trigger for invention?
10
© 2009 benginMapping values
intangible,nonmonetary
Focus: tangible, monetary
Virtual Realities (World 3)Doctrines, Teachings, MindSets, Rules
Real Reality (World 1)
Personal experience (World 2)Subjective worldReal for one person
bengin
World 3: Six interdependent fields
11
© 2009 benginMapping values
intangible,nonmonetary
Focus: tangible, monetary
Virtual Realities (World 3)Doctrines, Teachings, MindSets, Rules
Real Reality (World 1)
1776 2000
bengin
World 3: Six interdependent fields
12
© 2009 benginMapping values
intangible,nonmonetary
1. Political Economies, „Wealth of Nations“, Ground – Work – Capital
Focus: tangible, monetary
Virtual Realities (World 3)Doctrines, Teachings, MindSets, Rules
Real Reality (World 1)
1776 2000
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
© 2009 bengin
12Mapping values
bengin
World 3: Six interdependent fields
13
© 2009 benginMapping values
intangible,nonmonetary
2. Business Economies, „Wealth of Enterprises“
1. Political Economies, „Wealth of Nations“, Ground – Work – Capital
Focus: tangible, monetary
Virtual Realities (World 3)Doctrines, Teachings, MindSets, Rules
Real Reality (World 1)
1776 2000
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
© 2009 bengin
13Mapping values
bengin
World 3: Six interdependent fields
14
© 2009 benginMapping values
intangible,nonmonetary
3. Teachings to the ManagementBusiness ModelsConsultants
2. Business Economies, „Wealth of Enterprises“
1. Political Economies, „Wealth of Nations“, Ground – Work – Capital
Focus: tangible, monetary
Virtual Realities (World 3)Doctrines, Teachings, MindSets, Rules
Real Reality (World 1)
1776 2000
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Additional:
· Intangible Assets· Subjective Value Metric
Mises
© 2009 bengin
14Mapping values
bengin
World 3: Six interdependent fields
15
© 2009 benginMapping values
intangible,nonmonetary
3. Teachings to the ManagementBusiness ModelsConsultants
4. Bookkeeping
2. Business Economies, „Wealth of Enterprises“
1. Political Economies, „Wealth of Nations“, Ground – Work – Capital
Focus: tangible, monetary
Virtual Realities (World 3)Doctrines, Teachings, MindSets, Rules
Real Reality (World 1)
1776 2000
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Additional:
· Intangible Assets· Subjective Value Metric
Mises
© 2009 bengin
15Mapping values
bengin
World 3: Six interdependent fields
16
© 2009 benginMapping values
intangible,nonmonetary
3. Teachings to the ManagementBusiness ModelsConsultants
5. Laws (legal, paralegal)
4. Bookkeeping
2. Business Economies, „Wealth of Enterprises“
1. Political Economies, „Wealth of Nations“, Ground – Work – Capital
Focus: tangible, monetary
Virtual Realities (World 3)Doctrines, Teachings, MindSets, Rules
Real Reality (World 1)
1776 2000
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Additional:
· Intangible Assets· Subjective Value Metric
Mises
© 2009 bengin
16Mapping values
bengin
World 3: Six interdependent fields
17
© 2009 benginMapping values
intangible,nonmonetary
3. Teachings to the ManagementBusiness ModelsConsultants
6. Chartered Accountants
5. Laws (legal, paralegal)
4. Bookkeeping
2. Business Economies, „Wealth of Enterprises“
1. Political Economies, „Wealth of Nations“, Ground – Work – Capital
Focus: tangible, monetary
Virtual Realities (World 3)Doctrines, Teachings, MindSets, Rules
Real Reality (World 1)
1776 2000
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Mises
1750 1800 1850 1900 1950 2000 2050
MoralSentiments
1759
Wealthof Nations1776
Adam SmithMarx
Gauss
Towne TaylorMS-DOS
Keynes
Schumpeter
Classic:
· Tangible Assets· Monetary Value Metric
Additional:
· Intangible Assets· Subjective Value Metric
Mises
© 2009 bengin
17Mapping values
bengin
Summary
Tools for mapping economy and the rules for planning and reasoning business objects are divised in six interdependent specialized fields of profession.
In order to have an reasonable impact all areas/fields have to work on solutions.
Even if a coordinator would be an idea....I expect, that the development will follow a „swarm behaviour“.
The direction is driven by the need for: (i) a framework that structures the intangibles and (ii) a value-metric that allows calculation with subjective values.
18
© 2009 benginMapping values
«Count what’s countable. Measure what’s measurable. Make measurable what’s not measurable.»
Galileo Galilei
bengin
Agenda
Development of Economy
Innovation of Products- and Economic MindSet as a Product
Two Outpaced Paradigms
The Vector Solution
Conclusion and Outlook
© 2009 bengin
19Mapping values
bengin
Enhancing Paradigms
Deeply ingrained assumptions, teaching programs, mental models, „taken as granted“. They determine how we are aware of the reality and influence our behaviour.
At least 17 paradigms to be revised.
1.Ground, Work, Capital (as resources)... to be substituted by a framework that is based on tangible and intangible resources.
2.Value paradigmValue – as a result of a valuation process – has objective AND subjective aspects / dimensions.A scientifically correct value metric system has to reflect this necessity. Therefore it has to be multidimensional.(Linear measure vaporises the essence.)
20
© 2009 benginMapping values
bengin
Objects, Attributes, Value-Measures
21
© 2009 benginMapping values
Imaginary Numbers
Imaginary Numbers
Unit:iCHF, i$, i€ Subjective Numbers
RealNumbers
RealNumbers
Unit:CHF, $, € Objective Numbers
ResourcesResources
ObjectsObjects
NumbersNumbers tangibletangible intangibleintangible
Complex Numbers
Complex Numbers
Unit:CHF/iCHF, $/i$, €/i€ Vector
Implicit Values
Explicit Values
combined
bengin
Summary
Enhancing this two overhauled paradigms is possible.
(Even if it takes some time.)
22
© 2009 benginMapping values
«It is the theory which determines what we can observe.»
Albert Einstein
bengin
Agenda
Development of Economy
Innovation of Products- and Economic MindSet as a Product
Two Outpaced Paradigms
The Vector Solution
Conclusion and Outlook
© 2009 bengin
23Mapping values
bengin
The Vector
24
© 2009 benginMapping values
Value b
Value a
Vector = a + b
Single 2D-Vector4 vectorsof objects
Addingvectors
y
x
y
x
bengin
Vector Type 1
25
© 2009 benginMapping values
More samples:http://bh.bengin.com http://www.bengin.net/soft/vektorbeispiele01_d.htm
bengin
Vector Type 1 (Aggregation and Drilldown)
Engine
Chassis
Body / Design
Brand / Image
Functionalitysubjectivecustomer value (of the product)
R&D effectiveness
R&D expenditures / input ressources R&D efficiency
qualitative / subjective
qu
an
titative
/ fina
ncia
lTotal (Compound) P
erform
ance
Drill-Down
© 2009 bengin
26Mapping values
bengin
Vector Type 1 (Public Service Departments)
0
20
40
60
80
100
120
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
9 Police&Justice
Public Service Departments
Effe
cts
(su
bje
ctiv
e c
itize
n p
ers
pe
ctiv
e
Costs
Performance (of public service departments)
8 Others
7 Healthcare
6 Economy
5 Education
4 Infrastructure
3 Finance
2 Defense
1 Foreign Affairs
© 2009 bengin
27Mapping values
bengin
Vector Type 1 (practical application)
© 2009 bengin
28Mapping values
Asking customer(Internet)
Decision cockpit(links internal economic data with answers of customers)
bengin
book value
use value of investment for
investor A
price investor B is willing to pay
price investor A is willing to pay
subjective (intangible) view
objective (financial) view
use value of investment for
investor B
intrinsic value
price
uv B = (p B)2 – (bv)2uv B = (p B)2 – (bv)2
uv A = (p A)2 – (bv)2uv A = (p A)2 – (bv)2
Vector Type 2: Linking „objective“ with „subjective“ axis
© 2009 bengin
29Mapping values
bengin
Overpriced Papers? Is the Vector a prognostic tool?
Stock Exchange Value
0
2000000000
4000000000
6000000000
8000000000
10000000000
12000000000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
96
97
98
99
Value Vector
0
1000000000
2000000000
3000000000
4000000000
5000000000
6000000000
7000000000
8000000000
9000000000
0 2E+09
4E+09
6E+09
Explicit Values
Imp
licit
Val
ues
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
96
97
98
99
....a year before the downturn of the classic curve.... ...the Vector Map indicated a change of Coca Cola Amatil.........
© 2009 bengin
30Mapping values
bengin
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
0.00 20.00 40.00 60.00 80.00 100.00 120.00 mV
Food
Media
Services
Electronic
Information Technology
Mechanical Industries
Insurance
Steel
Electricity, Gas
Wood Industries
Bank
Automobil
Real estate
Health
iV
Source: Morgan & Stanley Capital International World Index; Cited in: Sveiby, Wissenskapital; Seite 23; Mi-Verlag 1998
14 types of industry (Sveiby)
© 2009 bengin
31Mapping values
bengin
Intangible Assets or Shareholders Profit Expectation?
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
implicit value [i - Mia]
explicit value [Mia]
-
McDonald's
Microsoft IBM
Ford
Coca Cola
The explicit Value and the implicit Value together draw a complete picture about the company’s value and its development.
The question remains:Is the implicit Value given by the real Value of the company?Is it given by some marketing tricks?Which part of it is made by the Shareholders Value Expectation?
© 2009 bengin
32Mapping values
bengin
A better model for new decisions
Value Points of 75 enterprises
0
1'000
2'000
3'000
4'000
5'000
6'000
7'000
8'000
9'000
10'000
0 1'000 2'000 3'000 4'000 5'000 6'000 7'000 8'000 9'000 10'000
explicit Values
imp
licit
Va
lue
s
Investors: Attention!
Management could use the potential more effective.
© 2009 bengin
33Mapping values
bengin
Tracking the development of an enterprise
Pointer of vector for five years
0 200 400 600 800 1'000 1'200 1'400 1'600
explicit axis [Mio CHF]
0
200
400
600
800
1'000
1'200
1'400
imp
lici
t ax
is [
Mio
iC
HF
]
96
93 94
92 95Question:"What happened in the year 1996?“
Answer:Part of enterprise sold.
2nd Question:Is this loss of intangible values compen-sated by the price received for the sold part of enterprise.
Answer: ?
Ask Auditor – if he’s still available….
© 2009 bengin
34Mapping values
bengin
Summary
With Vector 1 it is possible to show any desired values in context.
With Vector 2 it is possible to introduce a standard for subjective values.
After the relativity of time for the physicists 100 years ago, an analogical step can be made by economists with the relativity of value.
It will enable a more sustainable economy.
35
© 2009 benginMapping values
When you can measure what you are speaking about and express it in numbers,you know something about it; but when you cannot measure it, when you cannot
express it in Numbers, your knowledge is of meagre and unsatisfactory kind.Lord Kelvin
bengin
Agenda
Development of Economy
Innovation of Products- and Economic MindSet as a Product
Two Outpaced Paradigms
The Vector Solution
Conclusion and Outlook
© 2009 bengin
36Mapping values
bengin
Summary
I am very optimistic, that the economic theory will reach a higher level of applicability.
An enhanced economic paradigm (in that intangibles and subjective values will count) will improve the reasoning and decision process and in it‘s consequences will enable a new dimension of wealth.
Tree samples of influence we see at that time:
37
© 2009 benginMapping values
«Many of the patterns of nature we can discover only after they have
been constructed by our mind.»
Friedrich von Hayek
bengin
38
© 2009 benginMapping values
Four Main Points
1. Structure of Enterprise
3 Offerings7 Processes
6 Primary-Resources
2. Measures and Metrics
Enhanced System of Measuresthat Integrates Intangibles
and Subjective Metrics
3. Strategy of Enterprise
Outside-Inand
Inside-Out
4. Optimizing Value Net
Fromsupplier of supplier
tocustomer of customer
bengin
39
© 2009 benginMapping values
Four Main Points
© 2009 bengin
39Mapping values
bengin
Back- and Frontside of the Economics MindSet
40
© 2009 benginMapping values
ImageFlow of InformationTransparenceKnow-HowGoodwillSense, ClimateIdentificationWork with joyPatentsCopyrightsBrands
Intangible means of production
Imaginary Balanceintangible assets
„subjective“
O IDismissals -Engagements +Outsourcing -Absences -Death --Intell. prop ++Profit-/Loss----------------------------Sum + -
O InRawmaterial -Tools, Means -Wagues Mind -Wagues Hand -Sales Rights +Sales Services +Sales Products +P/L----------------------------Summe + -
HeadworkHandworkToolsManufacturingOriginal costMarginNet SPMargin------------------------
Gross SP
Hidden reserves
Current assets
Fixed Assets____
Outside capital
Equity capital
Security Praise, thankEducation EnlighteningAcceptance Transparence
Konstruktion
Qualitätsgerechte
Fertigungsgerechte
Benutzergerechte
Konstruktion
KonstruktionHidden reserves
Classic balance oftangible assets
„objective“
„subjective“ Values, not tangible, but real „objective“ Values [$, £, ¥. €, CHF]
Imaginary P&L of potential Classic P&L
„imaginary“ business economics „traditional“ business economics
Design of products(properties) Product calculation
Rights
Pro
du
cts
Services
© 1985 / 2008 Peter Bretscher
Subjective Experiences,
Values and Believes
Classic Rules,
Standards and
Value Metrics and Measures
bengin
Back- and Frontside of the Economics MindSet
41
© 2009 benginMapping values
ImageFlow of InformationTransparenceKnow-HowGoodwillSense, ClimateIdentificationWork with joyPatentsCopyrightsBrands
Intangible means of production
Imaginary Balanceintangible assets
„subjective“
O IDismissals -Engagements +Outsourcing -Absences -Death --Intell. prop ++Profit-/Loss----------------------------Sum + -
O InRawmaterial -Tools, Means -Wagues Mind -Wagues Hand -Sales Rights +Sales Services +Sales Products +P/L----------------------------Summe + -
HeadworkHandworkToolsManufacturingOriginal costMarginNet SPMargin------------------------
Gross SP
Hidden reserves
Current assets
Fixed Assets____
Outside capital
Equity capital
Security Praise, thankEducation EnlighteningAcceptance Transparence
Konstruktion
Qualitätsgerechte
Fertigungsgerechte
Benutzergerechte
Konstruktion
KonstruktionHidden reserves
Classic balance oftangible assets
„objective“
„subjective“ Values, not tangible, but real „objective“ Values [$, £, ¥. €, CHF]
Imaginary P&L of potential Classic P&L
„imaginary“ business economics „traditional“ business economics
Design of products(properties) Product calculation
Rights
Pro
du
cts
Services
© 1985 / 2008 Peter Bretscher
© 2009 bengin
41Mapping values
bengin
Pricing Values?
42
© 2009 benginMapping values
REV(Real Enterprise Value)
SPE(Shareholders Profit Expectation)
REV + SPE = TEV= Total Enterprise Value= „Shareholder Value“
Value Track(Ortskurve, REV)immat V
[i]
mat V [$]
mat V [$]
immat V[i]
mat V[$]
Time
Ic-Function
immat V
mat V
Str
uktu
r*)
*) As for example:BSC, EVA, BIG, UPR, B’E….
Intr
oduc
ing
axis
for
inta
ngib
les
M(tangible)
P&L
M(tangible)
BalanceI(intangible)
Balance
I(intangible)
P&L
How to explain?
Stock - Börse
Imaginäre BWL Klassische BWL
Economic Value Architecture & Engineering
Tangible and intangible
assets of an enterprise,
potential of an enterprise,
values of an enterprise
Market for Papers
(Stock-Exchange)
How to determine „fair value“ (price) for a paper?
bengin
Pricing Values?
43
© 2009 benginMapping values
REV(Real Enterprise Value)
SPE(Shareholders Profit Expectation)
REV + SPE = TEV= Total Enterprise Value= „Shareholder Value“
Value Track(Ortskurve, REV)immat V
[i]
mat V [$]
mat V [$]
immat V[i]
mat V[$]
Time
Ic-Function
immat V
mat V
Str
uktu
r*)
*) As for example:BSC, EVA, BIG, UPR, B’E….
Intr
oduc
ing
axis
for
inta
ngib
les
M(tangible)
P&L
M(tangible)
BalanceI(intangible)
Balance
I(intangible)
P&L
How to explain?
Stock - Börse
Imaginäre BWL Klassische BWL
Economic Value Architecture & Engineering
© 2009 bengin
43Mapping values
bengin
And now?
You are welcome and invited to take part of that journey.
peter.bretscher@bengin.com
Mobile: ++41 79 650 49 04
Eggersriet, Switzerland
44
© 2009 benginMapping values
A long journey begins with just one step.
Chinese
bengin
Thank You Web http://www.bengin.com
Blog http://www.bengin.net/wp/Twitter http://twitter.com/peterbretscher
Special Website http://www.bengin.net/dresden/
benginBeyond Limits of Classic Business Paradigms
© 2009 bengin
45Mapping values
bengin
46
© 2009 benginMapping values
backing slides
bengin
bengin
Transformation(M to I)
Q IQ I: Transform -M / +I- New projects- Revisions of offerings- Insourcing/merging-
+Min
+I
-M
in
out
-Iout
R&DQ II
Q II:Generation +M / +I- Daily business- Selling, dispatch- (Re)Production-
ValueGeneration
Q III
Q III: Transform -I / +M- Outsourcing- Leaner production- Transformation
(I to M)
Q IVQ IV:Degeneration -I / -M- Graveyard-
ValueDegeneration
The four Quadrants of Value generation
© 2009 bengin
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bengin
(2, 3, n-dimensional)$
% i$
2. QualitativeMetrics hot, cold ...... AAA, A+, B, C
3. Quantitative Metrics
(linear) $
Why Metrics?- comparing, comprehensible, reproducible- Making rationale (and indirect) communication easier.
1. Normative "Metrics"Principles, ....The xx "Commandments"
Axis of time
Mea
sure
s re
duce
nee
dfo
r in
terp
reta
tion
Str
ong
need
fo
r in
terp
reta
tion
$
% i$
$
Possible to calculate with and
visualize 2D-Values
Difficult to visualize.No tools and rules for numerical or
graphical calculations.
Development of (economic) Value-Metrics(Compound Value-Metric System with the subjective, implicit Value axis)
© 2009 bengin
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Von verschiedenen Organisationen in verschiedenen Projekten
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50
© 2009 benginMapping values
Bus. Techniquesnew
new
old
old
Technologies
Innovating Business Models
Products+ Services
Products+ Services+ Rights (IP)
bengin
Measuring performance
http://www.performanceprofile.comhttp://www.balancedscoremap.com © 2009 bengin
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2000
00
551
97
648
97
0
500
1000
1500
2500
3000 Mio
0 10 20 30 MiomV
iV
SPE
Initial Base (Value estimation)
Initial Offer, March 24. 2000
Evening 1st Day
1969
2'520
SP
ES
hare
hold
ers
Pro
fit E
xpec
tatio
n
Value (Price) Development of Paper(Shareholders view)
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Explained world
Value
Nach: Marle Marks,Manager Magazin 3/85
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Color measures
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1D – 2D rulers, metrics
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Vector: Velocity
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Next step: Focus on economic MindSetting / Paradigms
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Real economy
Solutions(Form & Content)
Hardware
Sof
tWar
e Applikations
Operating System Min
dWar
eApplications
Economic. TheoryBasics
New MindWare & SoftWare quantum leap in the simulation and planning of todays economy.
© 2009 bengin
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Basics of 2D-Value-Vector
x, y = two arbitrary properties of an object
y [i$]
x [$]x1 x2
y
x
Illustration 1
Illustration 2
x y x y
Cost Price Turnover Volume [m3]
Transports initialized
Transports finished
CostDeckungs-
beitrag
Budget Rechnung Price Retouren
Medical Properties
Subjective condition
TurnoverMitarbeiter-
zufriedenheit
TurnoverSparten
gewichtetRetouren
Kunden-zufriedenheit
x, y = explicite ("objective") and implicite ("subjective") Value-Properties as a Multi-Value-Compound.
x1 x2 Samples
Sum of balanceSum of Share
PriceShareholder Value
Wagues Turnover Weighted added Value
Price VW Price Porsche Subjective Added Value
© 2009 bengin
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