10 Rules For The Intangible Economy

1. 10 Rules For The Intangible Economy www.smarter-companies.com proprietary and confidential

2. 10 Rules for the Intangible Economy lays out the essential dynamics of the emerging financial order. www.smarter-companies.com proprietary and confidential

3. These rules are fundamental principles that are hardwired into the intangible economy, and that apply to all businesses and industries, not just high-tech ones . Think of these principles as new economic rules of thumb. www.smarter-companies.com proprietary and confidential

4. Rules are mental models, regulations governing conduct, action or procedure aimed at getting a result. www.smarter-companies.com proprietary and confidential

5. When theruleschange you have to change“how” you think before you canchange “what” you do to get the results you want. www.smarter-companies.com proprietary and confidential

6. The old rules for economic gains were designed to produce and sell tangible things www.smarter-companies.com proprietary and confidential

7. The new rules for economic gains are to create and distributevalue from intangible things www.smarter-companies.com proprietary and confidential

8. The new rules for the intangible economy start by thinking smarter, rather than working harder. www.smarter-companies.com proprietary and confidential

9. Smarter Companies Follow The Rules Of The Intangible Economy www.smarter-companies.com proprietary and confidential

10. These Are The 10 Rules For The Intangible Economy www.smarter-companies.com proprietary and confidential

11. #1 Throw Out The Old Rules • The old rules were about centralized control • The new rules are about decentralized control • The old rules were about managing people • The new rules are about enabling people • The old rules were about counting things • The new rules are about counting value www.smarter-companies.com proprietary and confidential

12. #2 Create Collaborative Advantage • It used to be about competitive advantage • Now it is about collaborative advantage • We used to compete for the same market. • Now we collaborate to expand the market • Competition is about beating someone • Collaboration is about working with someone www.smarter-companies.com proprietary and confidential

13. #3 Feed The Minds • Productivity is no longer measured in time • Productivity is now a measure of smarter thinking • The better we learn to think the more we can do • Give people information and they’ll wonder why • Give people knowledge and they’ll know how www.smarter-companies.com proprietary and confidential

14. #4 Increase Value • Tangibles represent 20% of the value • Intangibles represent 80% of the value • More value comes from the 80% than the 20% • Minds create more value than machines • Human capital rest in people minds • Engage the minds and increase your capital www.smarter-companies.com proprietary and confidential

15. #5 Give Value Freely • Generosity begets wealth. The law of reciprocity • Sharing ideas generously begets creativity • Value creation begins with an idea (Intangible Capital) • Good ideas are the ones that create new rules • If you create the new rules you rule • The rule is to give everyone value freely www.smarter-companies.com proprietary and confidential

16. #6Maximize Network Value • Shift from maximizing the firm’s value to maximizing the network’s value (Strategic Capital) • Unless the network survives, the firm perishes (Relationship Capital) • The network is much bigger than the firm • The network is were all value is created, distributed and consumed (Structural Capital) • To feed the minds feed the network. www.smarter-companies.com proprietary and confidential

17. #7 Accelerate Innovation • What was is now obsolete • Innovation comes from idea factories • Idea factories produce value not things • The factory isn’t contained in building • The factory is within human networks • Human networks create intangible capital from innovation www.smarter-companies.com proprietary and confidential

18. #8 Think Mind Share • It used to be about market share • Now it is about mind share • Mind share is created from interaction • Interactions create relationship capital • Relationship capital creates interest • Interest is the dividend of the intangible economy www.smarter-companies.com proprietary and confidential

19. #9 Improve Intangible Capital • Define what value means to people • Quantify the meaning to points of value created • Measure perceptions of value by stakeholders • Improve value creation through engagement • Correlate improvements to results • Start over again and never stop improving www.smarter-companies.com proprietary and confidential

20. #10 The Soft Trumps The Hard • Tangible things are easy to manage and see • Intangible things are difficult to manage and see • The most precious and valued assets are invisible and intangible • Social technology has made the intangibles visible • Identifying, measuring and enabling intangible capital is how more value will be created www.smarter-companies.com proprietary and confidential

21. The Intangible Economy Isn’t In The Future…. It Is Here Now www.smarter-companies.com proprietary and confidential

22. So Now Is The Time…. To learn how to create more value from the Intangible Economy by collaborating with Smarter Companies who know how. www.smarter-companies.com proprietary and confidential