The Value of the Intangible

We are running a research project with the Technical University Twente and Nikos (Dutch Institute for Knowledge Intensive Entrepreneurship) , to investigate the value of existing networks in organizations. As such we aim to provide an insight into which aspects determine that value. The results will give decision-makers mechanisms to nourish and stimulate the collaborative network, thus creating more value. Most of a network's values are intangible; we explicitly recognize human, creative and social capital as value domains complementary to financial capital. Ideas (creative value) cannot be touched, yet can generate huge revenues. Relations (social value) are amorphic context-dependent dynamic interactions, as intangible as things get, yet they are crucial to business, whether they be relations with suppliers, investors, customers or employees.

Analysis of intangible values in a business context is not something we have invented. The work of Verna Allee provides a smart and practical way to incorporate intangibles in your business and marketing strategy.

We have designed a questionair that assesses all relevant aspects of value, across the different domains. With that accomplished I realized there is something odd about what we are measuring. The questionair is real enough, and so the answers will be real too. But none of these can be considered ‘objective’ realities. People are asked to judge what they think and feel about certain aspects of their context. They are asked about their personal judgements about what aspects create value, and how much of these aspects is realized, how much of what they think is valuable do they observe in the world around them. This is highly subjective.

We are therefore investigating subjective realities, and one might argue if that is a questionable aspect of our research. Is research not supposed to be about objective facts?

In fact, we do exactly what we should be doing. Value is created by people, inside their own consciousness, even the objectively tangible value we measure in cash. Revenue is still te product of people making choices to buy products and services on the basis of what they personally value; what subjective decisions they make.

This is perhaps less striking for marketeers and psychologists, who fundamentally explore the domain of the intangible and subjective, but in a world that pretends to be so much about hard cash these are relevant considerations.