India Inc shines in Intangible Assets

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Indian Economy, intangible assets

Here’s some more good news for Indian economy watchers. We can take pride in the fact that India has been ranked No. 3 in the world as far as intangible assets are concerned. An article in the Economic Times says that India emerges head and shoulders above all developed countries and blocs, barring the US and Switzerland.

In today’s knowledge-driven global marketplace, intangible assets such as intellectual property, brand, customer relationship and talent hold much more value than tangible ‘visible’ assets such as capital, land, building, factories et al.

India is No.3 economy in the world with the highest intangible component as a percentage of the total enterprise value (TEV), value of disclosed and undisclosed tangible and intangible assets.

With an estimated intangible assets component of 74% (as proportion of TEV), India is just behind US (75%) and Switzerland (74%), according to Global Intangible Tracker 2007 (GIT), the most extensive global study ever on intangibles assets by the London-based Brand Finance Institute.

The GIT study assumes significance in the wake of changes in the accounting practices, which means that the valuation of intangible assets is now a boardroom issue and cannot be ignored.

With a large portion of our economy being primarily based on intellectual capabilities, the challenge for the future will be our ability to deliver top quality services and solutions across different points in the value chain.

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Make Networking Work For You

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A Step A Day, Business networking

“Business Networking-What’s that?”, asked the young software professional. When we spoke of it as being an essential part of career development, he was shocked. He told me, in all honesty, that the only networking he knew was the MSCE Networking essentials. He also knew about  basic wiring and network components like bridges, routers, switches, cabling types and patch panels. For him a network was a system of interconnected communication devices that can communicate with one another and share information.

I told him that business networking was not very different. Rather similar to his definition of computer networking, business networking is a process of developing professional relationships with contacts within and outside your organization with whom you share your knowledge. It is characterized by mutual advantage where you and the other person gain from the relationship.

A friend of mine is excellent in networking. He has contacts in different spheres relating to his work and interests. He can put you on to the best business coach, the best architect, the best doctor, the best caddy and the best tour operator.

Networking takes time and effort. Relationships have to be nurtured with care. They tend to fall apart if they are perceived to be one sided. If you are perceived to take more than you give, people would, with justification, question the motives of your attempts to network.

Stephanie Speisman writes in 10 Tips for Successful Business Networking : Effective business networking is the linking together of individuals who, through trust and relationship building, become walking, talking advertisements for one another.

What matters is not the number of contacts you have but the relationship you enjoy with them. Exchanging business cards and dashing off to catch the next guy is not networking. One of the challenges in networking is to stay in touch.  See what Harvey McKay has to say about The Most Important Things A Network Can Do and Biggest Networking Mistakes.

Enjoy the many advantages of having a well-oiled network. As McKay says- and that’s the title of his book – ” Dig Your Well Before You Are Thirsty”.

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