Rising to Business and Profit Forward Dynamic Asset Management Challenge

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Business and Profit Forward Dynamic Asset Management Challenge

An enterprise is a financial management structure on top of an operational activity.  Basic corporate management strategy is to focus on the management of all major assets.  This now also includes intangible Brand & Customer assets, which in fact are the business pipeline and the very basis for a profitable and tangible business relationship.  The money, which is used to create tangible assets, comes mainly from customers.

Traditional static financial management and accounting uses a series of static pictures to capture flows such as payments and cost of production.  This works well when managing tangible assets.  Traditional accounting, however, fails to capture the true value of the intangible or as I call them action tangible Brand & Customer assets, which requires a true dynamic asset management approach.  Managing business dynamics is all about finding the business action keys to the assets, which makes them tangible, and this is the new dynamic asset management challenge.

Management of action tangible Brand & Customer assets is based on understanding and managing their dynamic business process context.  It is in a way like modern quantum nuclear physics, which can only be understood in its dynamic context.  The truth is in the motion.  Dynamic asset management includes the management of both traditional tangible assets and the new action tangible Brand & Customer assets.  For this we need a closed loop asset management system, which covers all asset classes and all business processes.  I will explain the closed loop concepts further in the new dynamic asset management world chapter.

Dynamic asset management is consequently also based on the management of interlinked trans-enterprise business processes.  This is what I call business power chain management, which covers both business processes and their interactions.  Brand & Customer assets must also be structured.  This is because we can only see and manage what we can understand.  New asset structures are explained in the “Brand & Customer” chapters.

Business power chain management, which is focused on the vital business pipeline, is used to transform action tangible Brand & Customer assets into tangible business results.  The business power chain can be divided into three major processes:  1) administration and control, 2) supply with purchasing and manufacturing and 3) marketing and sales.  However, it can also include other specialized management processes such as risk management and quality control.  There are simply no universal solutions or formats, which will fit all enterprises.  The business power chain management concept must be tailored for each enterprise.

Trans-enterprise dynamic asset management also requires joint knowhow and operational collaboration from different departments.  We must now, for example, close the divide between the finance and marketing departments in order to fully understand and manage the true value of an enterprise’s action tangible Brand & Customer assets.  We must in fact introduce a new jointness team management strategy throughout the enterprise with the objective of sharing knowhow and operational responsibilities in the new interactive business process focused organization.




Manage Brand & Customer Assets

Manage Brand and Customer Assets“Dynamic-Tangible Brand-&-Customer Assets” are the major corporate assets, which require “Dynamic Profit Center Management” to cover both static and dynamic business models. Dynamic-Tangible market assets have direct impact on Profit-&-Loss Statements, which should be managed effectively.

Manage Corporate Power Chain

Bottom Promotion“Corp. Business Power Chain” bridges Static-Tangible and Dynamic-Tangible assets and is the kernel motor for creating cash flow and tangible business results. All departments and personnel are “Business Power Chain Contributors” and part of Corp. Performance Management, as explained in “Dynamic Balance Sheet and Profit-&-Loss Statements”.

Manage Business Timing and Change

Manage Business Timing and Change“Business Power Market Timing” and Corp. Change Management are critical in fast moving and ultra competitive global markets, which require “Dynamic Business-&-Profit Forward Management” with high management horizons in order to follow high market/business paces and secure future business.