Title Details

PATRICK H. SULLIVAN SR. is the cofounder of ICMG, LLC, and cofounder and facilitator of the ICM Gathering and the IP Forum. He is the author of the bestselling Profiting from Intellectual Capital, Value-Driven Intellectual Capital, and Technology Licensing, all published by Wiley.

Acknowledgments ix

Authors' Foreword xi

1 INTRODUCTION: THE EINSTEIN LEGACY 1

Intangibles in the Einstein Context 2

What Are Intangibles? 5

How Intangibles Differ from Tangibles 6

Perspectives on Intangibles 9

The Impact of Intangibles on Organizations 15

Some Outcomes of the Rising Importance of Intangibles 18

Why Manage the Organization’s Intangibles? 18

Einstein in the Boardroom 19

2 THE EINSTEIN VALUE CONTINUUM 21

The Difference between I-Stuff and IP 21

I-Stuff Management Thought Leaders 23

I-Stuff Management Activities 24

The Einstein Value Continuum 27

3 BUILDING THE PORTFOLIO OF I-STUFF 29

What Building Path Companies Are Trying to Accomplish 32

Best Practices for the Building Path 33

Conclusions: Beyond Building 48

4 LEVERAGING THE PORTFOLIO OF I-STUFF 51

What Companies on the Leveraging Path Are Trying to Accomplish 54

How Companies Leverage Their I-Stuff 55

Best Practices for the Leveraging Path 60

Developing a Brand Management Capability 70

Developing a Corporate Brand 73

Extracting Value from the Brand 76

Conclusions: Beyond Leveraging 77

5 INTEGRATING THE PORTFOLIO OF I-STUFF 79

What Integrating Path Companies Are Trying to Accomplish 82

I-Stuff Strategies 83

Managing across Organizational Boundaries 84

Measuring the Value of Intangibles 84

Best Practices for the Integrating Path 86

Conclusions: Beyond Integrating 100

6 SUSTAINING THE CORPORATION THROUGH I-STUFF 101

What Is Sustainability? 103

The Characteristics of Sustainable Corporations 104

Why Are Stakeholders Important? 105

Sustainability and I-Stuff Reporting 106

What Sustaining Path Companies Are Trying to Accomplish 108

Best Practices for the Sustaining Path 108

Conclusions: Beyond Sustainability 114

7 PROCTER & GAMBLE: PROGRESSING BEYOND INTELLECTUAL PROPERTY 117

Changing a Corporate Culture 117

The Promise of Intellectual Assets 118

How They Did It 119

Moving the Technology Forward 120

"Connect + Develop" 123

Accelovation 124

Mining Know-How 125

Reliability Engineering 125

The Value of Employees 128

APPENDICES

A HOW COUNTRIES AND REGIONS ARE HELPING THEIR COMPANIES CREATE VALUE FROM INTELLECTUAL CAPITAL 131

Introduction 131

Consequences of the Knowledge-Based Economy 132

The Role for Regions and Countries 133

Snapshots of Some Countries that Have Invested in ICM 134

Future Roles for Governments 150

B THE I-STUFF VALUE MATRIX 153

Defensive Value 155

Offensive Value 155

Revenue-Generating Value 156

Cost-Avoidance Value 157

Strategic Positioning Value 157

C UPDATING THE CONCEPT OF COMPLEMENTARY BUSINESS ASSETS 159

A Decade of Working with CBAs 161

Ideas Alone Are Not Enough 161

Conclusions 168

D UPDATING THE CONCEPT OF A BUSINESS MODEL 171

Introduction 171

The Academic Literature 171

The Business Literature 172

The ICM Gathering View 174

Business Models: A Working Definition 176

A Business Model Engine 176

Creating a Business Model 180

Business Model Implications for I-Stuff 181

E NEW CONCEPTS IN MEASURING VALUE 181

The Inherent Limitations of Traditional Accounting Measurement 183

Innovations in Value and Performance Measurement 188

Measurement Concepts 193

Measurement Criteria 198

Technical Appendix E.1 Value and Performance Measurement Innovations 206

Technical Appendix E.2 Resources 210

F CREATING AN I-STUFF STRATEGY 211

Step One: Create a Statement of Mission 212

Step Two:What Is a Strategic Vision? 213

Step Three: Outline the Corporate Business Strategy 214

Step Four: Identify the Kinds of Value the Organization's I-Stuff Can Provide 215

Step Five: Outline, Discuss, and Finalize the Organization's I-Stuff Strategy 215

Index 217

"Harrison and Sullivan continue to elevate understanding of the value of intellectual assets and, more importantly, provide a 'clinic' on the practical steps necessary to turn theory into bottom-line results."
—Jeff Weedman, Vice President, External Business Development The Procter & Gamble Company

"Einstein in the Boardroom is a valuable guide for business managers considering how to leverage intangible assets for profit."
—Joe Beyers, Vice President, Intellectual Property Licensing, Hewlett-Packard Company

"Going deeper into value creation for companies, Einstein in the Boardroom describes new ways to extract value from 'I-stuff' on knowledge, a tremendous asset that is too rarely exploited and could be leveraged by all readers of this great book."
—Beatrix de Russe, Executive Vice President, Licensing and Intellectual Property, Thomson

"Einstein in the Boardroom is a must-read for CEOs, CFOs, and board chairs facing the financial governance issues of share price, wealth creation, and value realization. When today's financial management systems may only deal with 20 percent of the value of the firm, Harrison and Sullivan offer a look at what a company can do to successfully create and extract value from the 'other' 80 percent, and they show you how other companies have done it!"
—Bill Swirsky, Vice President, Knowledge Development The Canadian Institute of Chartered Accountants

"Identifying, managing, and leveraging knowledge and intangible assets has enabled Cargill to differentiate itself from its competitors and increase its profitability. Harrison and Sullivan provide a clear perspective on how intangible assets fit within the corporate landscape and how to manage them to increase value for the organization."
—Harry J. Gwinnell, Vice President and Chief IP Counsel, Cargill