Intrinsic and Extrinsic Value: What Makes Successful Digital Businesses Cash Rich?
How often do we pause to consider the relationship between tangible and intangible assets, or examine models and methods to gauge the true worth of digital assets and their perceived value? My co-contributor Ralph Windsor has recently published a feature article entitled ‘Leveraging Intrinsic and Extrinsic Value: Understanding Why Successful Digital Businesses Are Cash Rich’. This in-depth piece takes a more advanced look at how successful businesses have exploited the relationship between the intrinsic and extrinsic value of their assets to generate continued growth and ROI.
“A lot of what pure digital businesses offer are digital assets which are representations of real world assets. The intrinsic element is either rented from (or sub-contracted to) micro businesses in the most capitally efficient manner possible. I would argue they would be more accurately termed ‘digital asset businesses’. The vast majority of Digital Transformation initiatives in conventional businesses are predicated on this method, although most fail to acknowledge the role the digital asset has in all this, they assume it is just ‘data’ or ‘content’.” [Read More]
The article investigates the numerous factors involved in unravelling, understanding and successfully navigating this new hybrid landscape, and offers insights for the digital asset novice and pioneer alike.