The value creation process has shifted from an emphasis on tangible things to optimizing intangible things in order to create tangible results. Let’s examine some of the evidence If you want to succeed in the Social Era then the recipe is to create more value by using assets that create the most value, intangibles. The problem with most organizational leaders is they simply don't know how.

1. proprietary and confidential
Value Creation Has
Shifted…
It’s about how and what value is being created

2. proprietary and confidential
There Are Three Distinctive Shifts
1.From technology platforms to business as a
platform
2.From the purpose being profits to purposely
creating value
3.From measuring and improving tangibles to
measuring and improving intangibles

3. proprietary and confidential
Business As A Platform
The word platform defines the core elements
around which the purpose of a business can be
fulfilled.
Once a business has defined its platform then
suppliers, internal resources and buyers can co-
create, add, distribute and consume value.

4. proprietary and confidential
Business As A Platform
Successful business platforms do three things:
A) Provides efficient and effective connectivity:
how easily can suppliers, internal resources
and buyers create, add, distribute and
consume value.
B) Attraction: Your business should attract
people, suppliers, resources, buyers and
markets
C) Purpose: The purpose of your platform is the
ongoing exchange and co-creation of value

5. proprietary and confidential
Business As A Platform
Successful platforms have three building blocks:
A)The Toolbox creates connection by making it easy for
others to plug into the platform. This infrastructure enables
interactions between participants
B)The Magnet creates pull that attracts participants to the
platform with a kind of social gravity.
C)The Matchmaker fosters the flow of value by making
connections between producers and consumers. Data is at
the heart of successful matchmaking, and distinguishes
platforms from other business models.
Three Elements if a Successful Platform Strategy: HBR

6. proprietary and confidential
Business As A Platform
A Business Platform
enables people to
participate in value
creation, addition,
distribution and
consumption as a
result of being
engaged with the
business.

7. proprietary and confidential
Business As A Platform
To succeed in the Social Era every business needs
to think of itself as a platform.
Thinking about business as a platform with three
things the platform needs to do and the building
blocks it needs to provide will change how and what
you and others do everyday.

8. proprietary and confidential
Business As A Platform
It’s not about organizational charts used to put
people in places.
It is about organizing the creation, addition,
distribution and consumption of value.
People self organize around value creation with a
purpose.
People resist being organized around positions
of little value or no purpose.

9. Business As A Platform
In his book The Practice of Management, Peter
Drucker declares there is only one purpose of a
business: to create a customer.
Then the purpose of a business platform is to
create value that creates a customer.
You can’t create a customer without first creating
value.

10. proprietary and confidential
Value Creation Is Only As Good
As The Source of Value
The evidence suggests a shift
is occurring in how and what
organizations create for value
that markets want to consume

11. proprietary and confidential
Lets Examine the Evidence
Wealth Is
Created From
Intangibles

12. proprietary and confidential
Lets Examine the Evidence
1.The intangible value of social media
2.The worlds most successful companies
3.S&P 500 Index
4.The Top 10 Cities in the USA
5.The Top 50 Countries in the World

13. proprietary and confidential
Wealth Is Created From Intangibles
Social media, and all things social, represents
intangible capital being created, added to,
distributed and consumed. Over $1 Trillion in
global commerce is created through social
media.

14. proprietary and confidential
Wealth Is Created From Intangibles
The Intangible results of social media include:
1. A positive or negative emotional reaction from brand
communications
2. The acknowledgement of being heard
3. The feeling of not being just a dollar sign to a brand, rather
than a valuable person.
4. The feeling that the brand is trustworthy, transparent and
open to dialogue from consumers.
5. The sense of recognition for contributing to the value of a
brand
6. The ability to influence others who share similar sentiments
about anything, everything and anyone

15. proprietary and confidential
Wealth Is Created From Intangibles
Results created by some of the world's most
successful organization are driven by the
intangibles: empathy (Google) culture
(Southwest), social graph (Facebook),
design (Apple) customer experience
(Amazon & Zappo's) and the list of companies
contributing their results to intangibles goes on
and on.

16. Wealth Is Created From Intangibles
The increased recognition of intangible capital
is reflected by the increase of the S&P 500
valuations assigning 84% of the company’s
value to intangibles. Just 25 years ago
intangible capital only represented 17%.

17. proprietary and confidential
Wealth Is Created From Intangibles
The World Bank reports that intangible capital
represents up to 80% of the wealth in any country.
The Top Ten best US cities to live in and the Top
50 most innovative countries are those that create
the most value from intangibles.
We are witnessing the recognition of intangible
value yet most companies simply don’t see it.

18. proprietary and confidential
Why Don’t They See It?
1.Because they haven’t been trained to see it
2.Because they can’t see what they don’t measure
3.Because they don’t know how to measure it
4.Because they never had to
5.Because it wasn’t as important as it is now
6.Because their wasn’t enough evidence until now
7.Because they can’t see what they don’t
understand

19. Seeing The Value
In the Social Era success comes to those who
create the most value. The recipe to creating more
value is by using assets that create the most
value, intangibles.
Now there is a way to see your own evidence. Use
an Intangible Graph to see (measure) what
intangibles create the most value for your
organization.

20. Use Your Capital Wisely
Smart Companies use
intangible capital to create more
value for all stakeholders.
Smart Companies use new
tools to identify, measure and
improve value creation.
Get the knowledge and learn
how to use your intangible
capital to create more value
than ever before.
Jay Deragon
Jay.deragon@gmail.com