Digital Transformation

The convergence of digital technologies with healthcare, encompassing telemedicine, electronic health records, wearable devices, AI-assisted diagnostics, digital therapeutics, and health data analytics. Digital health companies create significant intangible asset value through proprietary algorithms, patient data assets, regulatory approvals, and clinical evidence — all of which require specialist valuation approaches.

An increase in the amount of capital available per worker, which typically raises labour productivity. In modern economies, capital deepening increasingly involves investment in intangible assets — software, data infrastructure, organisational capital, and human capital — rather than traditional machinery and equipment.

A branch of computer science focused on creating systems capable of performing tasks that typically require human intelligence, including learning, reasoning, problem-solving, perception, and natural language understanding. As an intangible asset, AI encompasses trained models, proprietary algorithms, curated training datasets, and the institutional knowledge embedded in an organisation's AI capabilities.

A vehicle equipped with sensors, software, and AI systems that enable it to navigate and operate without direct human input. Autonomous vehicles represent a convergence of multiple high-value intangible assets, including proprietary algorithms, trained machine learning models, mapping data, sensor fusion technology, and safety validation datasets.

The process of creating, refining, or transforming the fundamental way an organisation creates and captures value. Unlike product or process innovation, business model innovation changes the underlying logic of value creation — potentially disrupting entire industries.

The analytical practice of representing an organisation's workflows, processes, and operations in a structured visual or formal notation to understand, analyse, and improve them. Common modelling techniques include Business Process Model and Notation (BPMN), flowcharts, value stream mapping, and simulation models.

A specific type of innovation, defined by Clayton Christensen, that creates a new market and value network by initially targeting underserved segments with simpler, more affordable solutions before eventually displacing established competitors. Disruptive innovation differs from sustaining innovation, which improves existing products for current customers.

The temporary dip in measured productivity that often follows a significant investment in new technology or organisational change, before long-term gains materialise. The productivity J-curve arises because intangible capital — such as learning, process redesign, and complementary innovations — takes time to build and deploy effectively.

AI and Total Factor Productivity: Macro-Economic Implications

Total factor productivity is the ultimate measure of technology's economic contribution, yet AI's impact on TFP remains undetectable in aggregate data. This article examines why, what the macro-economic models predict, and what it means for long-term investment strategy.

What is the Cost Approach to valuing intangible assets?

The Cost Approach values intangible assets by estimating the cost to recreate or replace them from scratch, used primarily for assembled workforce, databases, and proprietary software.

When is the cost approach the most appropriate method for valuing intangibles?

The Cost Approach is most appropriate for intangible assets where value derives primarily from replacement difficulty rather than direct income generation — such as assembled workforce, internal software, databases, and training materials.

How do I reduce founder dependency before selling?

Document the decisions and relationships only you hold, distribute customer contacts across your team, build a management layer, and withdraw from day-to-day operations in stages so the business demonstrably runs without you.