"Intangible
Assets and Value
Creation" by Juergen H.
Daum
» zur deutschen Ausgabe (to
the German edition)
The
transformation of our
economies and societies at
the begin of the 21st century
requires new
enterprise management
concepts:
This
book presents them!
John
Wiley & Sons Ltd,
Chichester/UK,
ISBN 0470845120, December
2002
(to
enlarge front cover / to
view back: click
on picture)
»
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amazon.co.uk
“Intangible
Assets and Value Creation”
by Juergen H. Daum summarizes
in a synopsis all relevant
aspects of intangible assets
management and presents for
the first time a
comprehensive and integrated
concept for enterprise
management that takes
intangible assets
systematically into account.
Including
many practical examples and
tips for implementation!
Including interviews with
leading experts like David
Norton, Leif Edvinssion and
Baruch Lev!
----------------------------------------------------------
Juergen
H. Daum,
is
management adviser, expert on finance and
enterprise management, and a
generator of ideas and stimuli
for the CFOs and controllers
of numerous European companies
in redesigning the
finance organization ("Finance
Transformation")
and the enterprise management
and control system
(e.g. related to topics
like "Beyond
Budgeting" or
Intangible
Assets Management).
In addition he is the Chief
Solution Architect of the
Business Solutions Architects
Group EMEA at SAP, based in
Walldorf, Germany. He
regularly publishes articles
in professional journals and
books, speaks at
conferences,
and is holding workshops and
seminars.
After
conducting more than three years
of
extensive research, he
published his book
"Intangible Assets and
Value Creation" in May
2002 (Germany edition -
English edition in January
2003). During
his research he investigated
the new control and
management requirement of
enterprises and of their
executives who are
confronted today with an
economic environment that is
so much different from the
one of the past from which
originate the management
tools that we know, but that
are not sufficient to help
companies and their managers
to master the challenges of
today’s
global knowledge
economy.
The
goal of this book is
threefold:
First, to provides
a complete
picture of these conditions
and of the new success
factors for companies today
that comprises all important
enterprise management
disciplines.
Second, to develop in a
systematic and
understandable way the
framework for a new more
appropriate enterprise management model
and system.
Third, to
guide managers as well as corporate
professionals and staff
members
in
starting to develop and
implement a new
management, accounting and
reporting system
for their company.
----------------------------------------------------------
The book's mission -
developing the foundation or a new
enterprise management system
:
Working
with some of the main
contributors to a new model
of enterprise and
performance management as
well as of accounting and
corporate reporting and
communications, Juergen H.
Daum developed in his book
the foundation for a new
enterprise management system
and introduces it from a
very practical perspective.
He is citing many examples
and is describing concrete
steps that companies must
take to implement the
management system for the
21st century.
This is complemented
with
interviews
with some of
the leading experts like
David Norton, coauthor of
the Balanced Scorecard, Leif
Edvinsson, pioneer and
thought leader in
intellectual capital
management, and with Baruch
Lev, the worlds leading
expert in intangibles
accounting.
The book meets a growing
demand of senior executives
and of CFOs to actively
manage the hidden immaterial
values of their companies
and to leverage the full
potential of all of their
corporate assets and
capabilties. Writes Dr.
Werner Brandt, CFO and
member of the board of SAP
AG:
“The
increasing importance of the
so-called knowledge economy,
which is often associated
with industries such as
software, pharmaceuticals,
the media, and financial
services, will continue to
change our image of the
economy and of value
creation. Factories and
assembly lines will no
longer form the wealth of a
company; instead it will be
the creativity and capacity
for learning of the
employees, innovation, and
the ability to maintain
long-term customer and
business partner
relationships.
But there is no exclusive
"either-or"
between industrial and
knowledge economy. Many
products will continue to be
manufactured industrially.
However, the share of
intellectual capital and
therefore of intangible
assets that flows into the
development and design of
new products and that forms
the basis for modern
competitive production and
supply chain processes will
increase.
But
to convert their knowledge
capital into a measurable
performance and results,
companies require
appropriate instruments for
control. A combination of
"old" and
"new" is also
valid here - for example,
efficient cost management in
combination with effective
innovation, market, sales,
and customer relationship
management. Here we need to
catch up, both with regard
to business science and
theory as well as the
practical aspects. This book
covers exactly this subject,
and represents therefore a
valuable contribution
towards making the
intangible assets that are
so valuable to a company
today more manageable by
integrating them into a
comprehensive enterprise
management and control
system.”
Dr.
Werner Brandt, CFO
and member of the executive
board of SAP AG
(quoted
from the book’s foreword)
----------------------------------------------------------
Extract from editorial
reviews:
"This
book aims at a paradigm
change in management and
names good reasons and
arguments for it. It belongs
into the management
discussion of today. Juergen
Daum proves great thought
leadership." (Controller
Magazin, issue 5/2002 -
review of German edition)
"The author
succeeded to present the
book's broad and complex
topic in a structured and clear way."
(Krp-Kostenrechnungspraxis,
5/2002 - review of German
edition)
"A comprehensive collection
of material and a rich
source for ideas around the
topic of intangible assets
management." (is-report,
issue 9/2002 - review of
German edition)
"A really COMPLETE
controlling and management
system is outlined.
And I
found many good ideas for my
practical work [as a
consultant]."
(amazon.de
customer review, August 2002
- review of German edition)
"An
impressive business book. ..What
makes the book special is
that it strikes a fine
balance between practical
insights, case studies and
applications on the one
hand, and state-of-the-art
theoretical concepts on the
other."
(Amazon.com customer review
of the English edition, 10/
2003)
"Intangible Assets is a
valuable advisor for
managers of companies, that
are based on knowledge-based
processes. No controller
should miss to read
it." (review of the
German edition, Business
bestseller summaries, No.
181, 2003)
"Would a six rating
star exist [for the Amazon
customer rating], I would
grant it for the interviews
with the five leading
experts and pioneers in the
field of this new accounting
and controlling approach:
Leif Edvinsson, David P.
Norton, Baruch Lev, Ghislain
Malcorps and Patrick
Georges. This is a clear buy
recommendation for managers,
auditors, controllers,
accounting experts,
financial analysts and
institional
investors."
(Amazon.com customer review
of the German edition, 07/
2004)
----------------------------------------------------------
About
the author:
Juergen
H. Daum is
a management adviser, an
expert on finance and
enterprise management, Chief
Solution Architect of the
Business Solutions Architects
Group EMEA at SAP in Walldorf,
Germany and a book author and a
speaker and moderator at
national and international
conferences, workshops and
seminars.
For the CFOs and controllers
of numerous European
companies, he functions as a
generator of ideas and stimuli
for the redesign of the
finance organization ("Finance
Transformation")
and
of enterprise performance
management
(e.g. related to topics
like "Beyond
Budgeting" or
Intangible
Assets Management).
Together with
his colleagues of the SAP Business Solutions Architect
Group he has built up a network for
CFOs and senior finance
architects of European
companies (SAP
Finance Best
Practice Network) through
which he is organising cross industry and cross
country learning and exchange
of finance best and next
practice between member
organisations.Before
his current position he was responsible
in SAP's product development
group as Director Program Management
mySAP Financials for the
strategic repositioning of SAP’s financial and accounting applications,
then called mySAP Financials.
Before, as project manager and
later as global product manager, he shaped the
concept for SAP’s Strategic Enterprise
Management (SAP SEM) solutions, a suite of analytic software applications to support
enterprise performance
management. Prior he worked for
SAP in sales, consulting and
product management functions
in Germany and on a European
level. Before joining
SAP in 1992 he was the CFO and
controller of a German midsize
company. He
regularly publishes
articles
in professional journals and
books, speaks at
conferences,
and is the author - in
addition to "Intangible
Assets and Value Creation"
(2003) - of the book "Beyond
Budgeting" (2005 -
German edition). In addition
he teaches at various
universities and business
schools in Germany and the UK
and is training controllers at
the Austrian Controller
Institute (Österreichisches
Controller Institut). He can be reached
via his website at www.juergendaum.com.
interview
with Juergen H. Daum
»
Juergen
H. Daum @ Events 2006
»
Speeches,
conferences, seminars and
workshops (2002-2005)
»
List
of publications 2002-2005
----------------------------------------------------------
Articles:
Why
a new managment system?
A
European Peer Discussion:
“Measuring and Managing
Intangible Values in
Today’s Economy”
Value
drivers intangible assets
and intellectual capital:
implications for the
reporting, management and
corporate governance
practice – report from a
workshop in Copenhagen with
experts from Sweden, Denmark
and Germany
----------------------------------------------------------
»
from amazon.com
»
from
amazon.co.uk
» from amazon.de
» order
German edition from
amazon.de
More
about this book
Overview
Statements about the book's topic
Corporate success today is not
based any more on production facilities, financial capital and ownership, but
on invisible and untouchable values - intangible assets
-, such as
relationships with business partners, brands, ideas,
the quality of business processes,
talented employees, corporate culture,
intellectual capital and innovation
power.
As a consequence, the old systems
for managing companies have become
outdated. They had been
conceived for the industrial
age and worked well for
decades. But they are
failing in the knowledge
economies of today. Which tools requires management instead ?
How does the new model of
the enterprise look like and how must companies be organized internally and
how they have to organize relations to external parties in
order to be
successful under these new conditions ? Which are the concepts and management
tools necessary to harness the full potential of a company’s intangible
assets in order to be able to create
sustainable value for all its stakeholders?
This book explains and
demonstrates, how companies
can be managed successfully and
can create
sustainable value in the new era of “intellectual capitalism”.
The author develops an
enterprise management and
control system that
integrates concepts such as
the Balanced Scorecard, Real
Options Valuation, Beyond
Budgeting and new human
capital, customer, and
innovation management
techniques into one
comprehensive management concept and
framework. This includes
also mission critical "soft factors",
such as a new approach to
management communications
and dialogs, which support
better the new management
processes, as well as
concepts, for improving the
personal productivity of
managers.
The
book includes many practical
examples and case studies as
well as interviews with
the leading
experts in the respective
field, such as Leif
Edvinsson, David Norton and
Baruch Lev.
German
Edition: Galileo Press,
Bonn/Germany, ISBN 3-89842-112-0, May
2002 (more
about the German edition)
English
Edition:
John Wiley &
Sons Ltd, Chichester/UK,
ISBN
0470845120,
December 2002
»
Foreword
to the German edition by Karlheinz
Hornung,
Chief
Financial Officer and member
of the
executive
board, MG Technologies
»
Foreword
to the English edition by Dr. Werner Brandt,
Chief
Financial Officer and member
of the
executive
board,
SAP AG
-
The end of industrial capitalism and of traditional management
-
Factors of corporate success in a knowledge based, digitized economy
-
The evolution of organization structures and of organizational capital
-
The new management system and a new approach to accounting and business controlling
-
Management tools of the future: How managers can increase business effectiveness
-
Challenges for the CFO und CIO
-
Intangible Assets and the wealth of nations: How should the new production factors affect economic policy ?
Since
begin of the 1980s, the share of Intangible Assets of corporate market value,
that is the amount of market value that is not reported on a company’s
balance sheet, has constantly increased from an average of 40% to over 80% at
the begin of the 21st century. And this growing dominance of
Intangible Assets in the developed economies is changing the economics.
In
order to create sustainable value for their investors and stakeholders under
these new conditions, companies have to:
-
Transform their organization structures and processes and partly also have to adapt their corporate culture
-
Implement new management systems and improved accounting, controlling, and analytical tools
In
his book, Juergen Daum starts to describe the new business conditions of an
Intangible Assets based economy and its consequences for companies. He
explains the limitations of the traditional business organization and its
management, accounting and controlling systems. He continues to demonstrate,
underpinned by many examples from real life companies, the success factors for
enterprises in this new environment.
In
the second part of the book, the author presents, through two detailed case
studies of well known firms, the evolution of enterprise structures in the
past two decades:
-from the hierarchical industrial corporation to the global but decentralized
enterprise that can act locally in an entrepreneurial way, while sharing
knowledge based Intangible Assets on a global level and
- from the global industrial company to the networked e-business enterprise,
that is able to increase leverage of its Intangible Assets exponentially.
The third part of
the book presents a concept and detailed blueprint for a new management system
that enables companies to master the challenges and fully leverage the
opportunities of the era of the Intellectual Capital and Intangible Assets.
This includes the presentation of a framework for a new accounting,
controlling, and risk management system as well as
management concepts, that enable managers to increase the effectiveness
of their strategies and organizations. It is followed by the description of
the challenges CFOs and CIOs are facing in providing the new business
information infrastructure as well as of the possible solutions.
What a knowledge and Intangible Assets based economy on the macro level means, is covered in the last section of the book. Here the author presents and elaborates on the new economic success factors of nations.
Juergen
Daum is using many examples and case studies for illustration. This is
complemented through interviews with leading experts. The concepts these
experts talk about, have been integrated into the framework for the new
accounting, controlling, and management system proposed by Juergen Daum in his
book. Here some extracts from the interviews with Prof. Baruch Lev, David
Norton,
and Leif Edvinsson:
Articles
about
the book's topic written by
the author:
Vector-Based
Performance Measurement:
Linking the Subjective and
Objective Dimension into One
System of Performance
Measurement
(August
2004)
(article
as PDF
)
(presentation:
PDF
as
winzip file)
Report
from the First PMA
Intellectual Capital
Research Symposium held in
Cranfield, UK, 1-2 October
2003
(October
2003)
Intangible
Assets and the need for a
holistic and more future
oriented approach to
enterprise management and
corporate reporting (Paper
(co-authored with Baruch
Lev) submitted for and
presentation (prepared
together with Baruch Lev)
held by Juergen H. Daum at
the First PMA Intellectual
Capital Research Symposium
held in Cranfield, UK, 1-2
October 2003)
Value
drivers intangible assets
and intellectual capital:
implications for the
reporting, management and
corporate governance
practice – report from a
workshop in Copenhagen with
experts from Sweden, Denmark
and Germany
(March
2003)
Why
a new management system?
(January
2003)
Approaching
the next level of
shareholder value management
– the art of corporate
performance management (part
2)
(December 2002)
A
European Peer Discussion:
“Measuring and Managing
Intangible Values in
Today’s Economy”
(November 2002)
Approaching
the next level of
shareholder value management
– basics (part 1)
(August 2002)
Corporate Performance Management: Managing profitability and growth in the new environment (Januar 2002)
The new FASB rules for reporting on Intangible Asset - The U.S. versus the European way (November 2001)
"Business
success of enterprises from
all industries is based
increasingly on their
capability to innovate and
to create sustaining
relationships with business
partners and customers.
Through investments in these
areas they create intangible
assets which represent,
beside their human capital,
the core of their corporate
value."
Prof.
Dr. Henning Kagermann,
CEO of SAP AG
_____________________________
"In an effort to achieve optimal allocation of corporate resources, managers should develop the capability to assess the expected return on investments in R&D, employee training, information technology, brand enhancement, online activities, and other intangibles and compare these returns with those of physical investments."
Prof.
Baruch Lev,
Professor of
Accounting and Finance at
New York University, Stern
School of Business
______________________________
"It’s impossible for financial systems to describe the process of intangible asset based value creation. They can’t integrate different kinds of assets into what I would call a strategic recipe. With the Balanced Scorecard an organization has a way that it can describe its strategy because it allows you to deal with non-financial factors - the intangible assets - and to show how those are being tied to financial outcomes. And once you describe it, you can manage it."
David
P. Norton,
co-author
of the Balanced
Scorecard concept
(quoted from the interview in
this
book)
______________________________
"Most
companies do not dispose
today of the information and
management tools they need
in order to manage their
intangible assets
effectively. It's the tasks
of the chief financial
officer, as the guard of the
economics of the enterprise,
to provide these tools and
information systems."
Cedric
Read,
Director World Class
Finance,
KPMG UK and author
of the book
„e-CFO“
______________________________
"Industrial value chain processes no longer dominate economic value creation. Today it is innovation, it is seeking new ways of meeting market demands, that is yielding the highest return on investment. And that means that you have to invest in your Intellectual Capital and in new structures that help you to innovate and to make a difference."
Leif
Edvinsson,
father of the concept of
Intellectual
Capital and former
director Intellectual
Capital at
Swedish financial services
provider
Skandia
______________________________
krp-Kostenrechnungspraxis
5/2002 (October 2002):
...the
book "Intangible Assets"
provides an interesting introduction to the challenges, which the new knowledge
economy places at companies
in the areas of management,
accounting and controlling. The author
succeeded to present the
book's broad and complex
topic in a structured and clear way.
...The book is of interest both for
managers as well as for
controllers and accountants.
Controller
Magazin
5/2002 (September 2002):
...
a very engaged, carefully investigated and
knowledgeable written book...
This book aims at a paradigm change
in management and names good reasons and arguments
for it... The book belongs into the
management discussion of
today, it brings much change
potential to the table.
Juergen Daum proves great
thought leadership.
is-report
9/2002 (September 2002):
...
the author succeeds in
presenting in a very good
and varied
way concepts and methods for
performance measurement. To
investigate the (still exotic) topic
of intangible assets creates unquestionably
value added. This book is a good, comprehensive gathering of material and a rich
source for ideas around the
topic of intangible assets.
Acccounting,
August 2002:
The call
for improved controlling and reporting systems
is growing louder. Juergen Daums
suggestion for a Tableau de Bord
[as controlling and
reporting tool, as described
in the book], which unites the best concepts available in the market, can
help here. His suggestion is
brilliant and typical for times, when
business science is not any
more held together by one unifying
model.
Amazon.de
customer reviews (July and
August 2002):
Average customer rating: *****
Absolute
buy recommendation -
A really COMPLETE controlling
and management system is outlined. And I
found many good ideas for my
practical work [as a
consultant].
A
comprehensive control and
management concept
-
The author outlines nothing less than a comprehensive
controlling and management system...
It is an excellent book. Juergen Daum presumes not in endless academic discussions, but
added many practical examples,
easy-to-digest explanations
and descriptions as well as focused interviews with the unquestioned experts
in the respective areas. The book stands thus more in the
Anglo-American tradition than
comparable German-language
management publications...
Amazon.com
customer review (October 2003):
Average customer
rating: *****
An
impressive business book
on the "exotic"
topic of intangible assets...What
makes the book special is
that it strikes a fine
balance between practical
insights, case studies and
applications on the one hand,
and state-of-the-art
theoretical concepts on the
other...I strongly recommend
this book if you want to have
a better understanding of the
comprehensive role and
implications of a company's
intangible assets.
Business
bestseller summaries, No.
181, 2003:
Intangible
Assets is a valuable
advisor for managers of
companies, that are based on
knowledge-based processes. No
controller should miss to
read it." (review of
the German edition)
Amazon.de
customer reviews (July 2004):
Average customer rating:
*****
Would
a six rating star exist [for
the Amazon customer rating],
I would grant it for the
interviews with the five
leading experts and pioneers
in the field of this new
accounting and controlling
approach: Leif Edvinsson,
David P. Norton, Baruch Lev,
Ghislain Malcorps and Patrick
Georges. This is a clear
buy recommendation for
managers, auditors,
controllers, accounting
experts, financial analysts
and institional investors.
Interview
with Juergen H. Daum
Juergen
H. Daum is
a management adviser, an
expert on finance and
enterprise performance
management, and the Chief
Solution Architect of the
Business Solutions Architects
Group EMEA at SAP in Walldorf,
Germany. He
also is a book author and a
speaker and moderator at
national and international
conferences, workshops and
seminars
Management adviser: For the CFOs and controllers of numerous European companies, he functions as a generator of ideas and stimuli for the redesign of the finance organization ("Finance Transformation") and of enterprise performance management (e.g. related to topics like "Beyond Budgeting" or Intangible Assets Management).
Expert on finance and enterprise performance management: He teaches at various universities and business schools in Germany and the UK and is training controllers at the Austrian Controller Institute (Österreichisches Controller Institut). In his workshops and seminars about finance and controlling/performance management topics he provides practicable concepts for developing the CFO and controller function in organisations and for "management innovation". He regularly publishes articles in journals and books, speaks at conferences, and is - in addition to "Intangible Assets and Value Creation" (2003) - also the author of the book "Beyond Budgeting" (2005, German edition).
Chief
Solution Architect at SAP:
Together with
his colleagues of the SAP Business Solutions Architect
Group he has built up a network for
CFOs and senior finance
architects of European
companies (SAP
Finance Best
Practice Network) through
which he is organising cross industry and cross
country learning and exchange
of finance best and next
practice between member
organisations.
Juergen
H. Daum
is
engaged through
various activities (conferences,
seminars, workshops
etc.) in the European finance
and controller community. He
also is
a member of the Controller Association,
based in Germany (Internationaler Controller Verein
e.V.) and maintains a personal
network of relationships to
thought leaders in Europe,
North America and Asia.
Before
his current position he was responsible
in SAP's product development
group as Director Program Management
mySAP Financials for the
strategic repositioning of SAP’s financial and accounting applications,
then called mySAP Financials.
Before, as project manager and
later as global product manager, he shaped the
concept for SAP’s Strategic Enterprise
Management (SAP SEM) solutions, a suite of analytic software applications to support
enterprise performance
management (therefore his colleagues
call him also the "father
of SAP SEM"). Both roles included the
responsibility for business
development, the acquisition
of pilot customers and the
creation of relationships to
executives of these customers
and to important thought leaders
- both in North America and
Europe. Prior he worked for
SAP in sales, consulting and
product management functions
in Germany and on a European
level. Before joining
SAP in 1992 he was the CFO and
controller of a German midsize
company
Juergen
H. Daum, born in 1960, lives with his family near Heidelberg in Germany. He owns a
second home in France.
Speeches, conferences, seminars and workshops 2002-2005
List of Publications 2002-2005
He can be reached at:
Website: http://www.juergendaum.com/
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