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Harnessing Intangible Business Factors with Dynamic Business Models

by | May 24, 2024

In the session “Harnessing Intangible Business Factors with Dynamic Business Models,” part of the “System Dynamics for Business Innovation” series led by Kim Warren, the conversation centered on how intangible assets like reputation, skills, data, and quality affect—and are affected by—the development of a business system and its performance. Here are the key takeaways from the session:

  1. Understanding Intangible Factors: Intangible factors such as reputation, skills, and data play crucial roles in business systems. Warren stated, “Intangible factors are not just qualitative; they can and should be quantified.”
  2. Specifying and Quantifying Intangibles: Participants learned methods to specify, quantify, and simulate intangible factors within dynamic business models (DBMs). Warren shared, “Dynamic business models can reliably incorporate intangible elements, allowing for better strategic decisions.”
  3. Leveraging Intangible Assets: Strategies to harness intangible assets for business growth and sustainability were discussed. “Understanding and managing intangibles can lead to significant improvements in business performance,” Warren noted.

Warren classified intangible factors into three main categories: State of Mind (e.g., reputation, motivation), Information-based (e.g., data, procedures), and Quality-related (e.g., product quality). Each category plays a crucial role in the overall dynamics of business systems, impacting everything from customer loyalty to operational efficiency.

State of mind intangibles influence behaviors such as customer loyalty and staff productivity. As Warren illustrated, “State of mind drives behavior, which in turn impacts business performance.” Information-based intangibles, including customer data and procedural knowledge, are vital for improving operational efficiency and customer satisfaction. Accurate and comprehensive information helps businesses operate smoothly and meet customer needs effectively. Additionally, improving product or service quality over time enhances reputation and fosters customer loyalty. Conversely, negative qualities, like software bugs, need to be minimized to avoid damaging the business’s reputation and customer trust.

Watch the full webinar recording below. It provides in-depth insights into the development, functionality, and applications of leveraging intangible business factors with dynamic business models, showcasing its potential to improve business strategy and operations.

Courses

How to Build Intangibles into Your Dynamic Business Models

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Modelling Intangible Factors + Modeling Essentials

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    Watch the recording below

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    About the Speaker

    Kim Warren is an experienced strategy professional, teacher, and publisher of online courses and teaching resources on business modeling – fast becoming a mainstream capability for executives, consultants, and business students. He was awarded the Jay Wright Forrester Award by the International System Dynamics Society in 2005 and was the Society’s President in 2013.

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