In today’s ever changing economy, staying ahead of the competition is of utmost importance.
According to the Brookings Institute (2003) in 1982, 62 percent of an organisation’s market value came from tangible assets and 38 percent from intangible assets. Tangible assets include things like machinery, products, facilities, etc. Intangible assets, on the other hand, include factors such as brand, intellectual property, and, most important, the quality of the workforce. By 2002, 20 years later, the source of value had almost totally flipped. Almost 80 percent of market value today comes from the intangible with a scant 20 percent coming from tangible assets. This is true as of today as well, with businesses such as Uber and AirBnb becoming some of the most lucrative and disruptive in the world, while not owning any cars or property themselves.
In short, the quality of an organisation’s talent, its passion and commitment, is impossible to replicate. Engagement is the fuel that drives the value of intangible assets.
For this reason, retaining talent is the main concern for a lot of organisations, as staff and their ideas are the main elements that will drive competitive advantage. The main reasons are that employees know not only the organisation well but will also have the first-hand experience with dealing with customers. They are the ones who listen to their requests, complaints and suggestions, so to ignore this knowledge is a big strategic mistake that a lot of organisations still make.
It then becomes necessary to provide them with the right tools, so that the workforce is heard and able to contribute ideas in an efficient and manageable way. Idea management software such as our platform Idea Spotlight provides the necessary tools and workflow to make the idea sharing process transparent, social and meaningful.