TABLE OF CONTENTS In the last chapter we learned that financial transactions were the end result of numerous intangible transactions. The quality of those intangible transactions determines current business, repeat business, and referred business. Intangible transactions are responsible for creating financial transactions and future profitability.
Because conventional management systems only measure financial transactions and specifically exclude the systematic capture of intangible transactions, conventional systems do not measure the source of value creation, only its manifestation.
This chapter will illustrate that of the three categories and 18 core resource types that organizations can manage in the knowledge-based economy (KBE), conventional management systems only manage one category and 6 core resources. Assuming consistent resource value across all 18 core resource types, conventional management techniques fail to even acknowledge more than 60% of an organization's resources.
Intangible management applies to all organizations. Intangible management concerns itself with the scientific management of all tangible and intangible resources at an organization's disposal. Organizations have access to two basic types of resources: tangible and intangible.
Figure 4.1 illustrates that organizations manage three levels of resources in order to create effectiveness, efficiency, and sustainability. These three levels are defined by IIS2001, the Intangible Operating Structures Standard, as follows:
Level 1 Resources ( IIS2001.S1). Level 1 (L1) resources are legal property rights. IIS2001.D1 defines legal property rights as the right of an entity to own, otherwise control,...
