Intangible capital comprises all the attributes of the company and what differentiates it from its competitors. Five main elements converge to form intangible capital. They include:
Human: This includes the workforce. As a result, we attach to it the skills of the employees, their experiences, their know-how, their motivation, their sense of belonging, their involvement in the company as well as the dominant culture. Finally, the entrepreneurial spirit of its leader.
The customer: This aspect takes into account the degree of concentration of clients as well as their profiles. As a result, we also understand the quality of the loyalty of the relationships that the company maintains with each of them.
The market: This refers in particular to the nature and size of the market in which the company operates. The knowledge of the market that the company has as well as its positioning on it is also taken into consideration.
The organizational model: This aspect includes the working methods and the managerial style in place in the company. It takes into account in particular how the company views training (by allocating a budget) as well as the quality of administration and information management.
Commercial power: This last element includes the evaluation of the network of commercial partners (suppliers and distributors) of the company as well as the links it maintains with them.
The elements that the management should work on
The business leader must consider the way he builds and directs his business. It’s possible to measure a company’s impact based on its performance. To be sustainable, the company must concentrate on the following elements.
Quality of its Product: The founders and the management must concentrate their efforts on the quality of the product or service. The team should be specialized in a particular field because this helps them to create and exploit a niche. This also helps them to attract and retain their customers. Many consumers are attached to a company or a brand because they find it the best quality/price and are not ready to compromise on either of these two points.
The organizational model: The management must pay particular attention to ensuring that the organization does not undermine the development process of the activity.
This depends in part on the qualification of the personnel, work procedures, but also on the quality of the social climate present in the company. The management style operated within the organization also helps foster this social climate and motivate the teams. Engaged and motivated teams will be very productive and will not hesitate to give the company the best of their skills and know-how. Qualified and engaged staff can sometimes differentiate the company and bring a unique quality to it.
Proximity to the customer: This element determines the quality of the bond between the company and its customer. It should in no case be neglected since it is essential to the survival of the company. Loyalty must be nurtured at all times. But also by being attentive and offering personalized follow-up and going the extra mile to serve them. These help the customer to feel comfortable, trust the company and remain loyal to it.
All of these parameters, if they are taken into account they will make it possible to prevent market saturation by competing companies. It’s about making it as difficult as possible for them and imposing a lot of constraints on them when they try to get hold of customers. And this also applies to companies that try to position themselves in a market by cutting prices there.
Why should you protect your intangible capital as a business?
The role of intangible capital and its importance for the company
Intangible capital has a lot of value to the companies. Its promotion has become an essential need in markets where their hearts lie in innovation. Intangible capital constitutes the company’s heritage. It defines its qualities as well as its capacity to generate value. Among its components are therefore the products (or services), the organizational system, the commercial power, the human and the market. Each of these six elements makes it possible to define the qualities of companies and their capacities. In addition, all of these elements allow the company to acquire competitiveness and often differentiation.
The latter constitutes a competitive advantage that can sometimes prove to be decisive.
The quality of intangible assets is what also allows a company to become more efficient than its competitors. In short, it includes everything that takes part in the existence of the company and everything that qualifies it as such.
Intangible capital makes it possible to understand the very identity of the company as well as its history, which makes it progress and therefore its real heritage.
How to protect the data used by the company
Digitization: a threat and an opportunity for the company
Digitalization has allowed companies to enter a whole new era with almost endless possibilities. But now, the data they use is all exchanged digitally. Thus, companies must store the information they have safely. Technology has proven more than once that it has its challenges. From computer failures to hacking of security systems, and many are stuck with outdated technology. Still, some companies don’t back their information adequately. Knowing this, solutions have been developed to help companies secure their information, and therefore, their intangible capital.
The Cloud: a powerful security solution
Several backup methods exist such as NAS type sites or others. Even if these are widely used, they do not offer ideal security and even present several risks: theft, fires, bugs, etc. which can lead to total loss of data. In this complicated context, Cloud Computing was born. With this system, data is stored outside the company, on several more or less distant sites ( abroad). Therefore, even if a problem occurs on one of the sites, the data is protected since it is duplicated in several storage locations. The user only has to launch a restoration to find all of his documents in just a few hours.
The method is useful when you have a lot of data. It is also necessary to be careful with the aspects related to security and particularly concerning the devices created for the “general public”. These are not always the best and don’t offer a high level of protection and in particular for data access. In short, it is better to turn to systems dedicated to companies.
An industrial and periodic approach is preferable
It is essential to set up an organization as well as an automated system in order to protect its intangible assets. By mapping the data and understanding its organization, it is possible to define the best tools and install them quickly. Every business is unique and there are many ways to meet its specific needs and expectations. Finally, we must pay particular attention to the user experience and work without the interruption of operation. Even if the storage device is still only in the deployment or processing phase, safeguarding electronic documents is not an option, but an obligation for companies. They must secure their information and thus protect all of their intangible capital. Companies that have taken the necessary protective measures can thrive without the anxieties of seeing their “data” capital stolen by criminals.
In addition, the company’s continued operation is essential for its growth and so data security should be its priority.
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