Proceedings of the 12th European Conference on Knowledge ...

Camilo Augusto Sequeira and Eloi Fernández y Fernández
investment. As an asset classified as "competitive," <strong>the</strong> value created is directly aligned with future
strategies.
STAKEHOLDER
AND STAKEHOLDER
EXPECTATIONS
UNDERLYING ASSET
INTANGIBLE ASSET
SOURCES OF ADDED VALUE
1.Identification
process <strong>of</strong>
strategic
competencies
Partial
2. Capacity to implement
aspects <strong>of</strong> HSE based on
strategic objectives.
Government and
relationship networks
Yes
Upper
Management
3. Process to
identify best
practices, gaps
and obtain
feedback Partial
Foster corporate
excellence in HSE
performance
Model for HSE Processes
and Methodologies
Organizational, Competitive
Figure 5:Intangible Asset, Underlying Asset, and SAVs
CAPEX
4 5 5 5 4 4 5
The intangible asset has a potential <strong>of</strong> 63%; this means it has room for 37 percentage points <strong>of</strong>
possible performance improvement for creation <strong>of</strong> value.
There are eight sources that create value for this asset. One <strong>of</strong> <strong>the</strong>m, "Valuation <strong>of</strong> Benefits," is
considered to be a Contributor with a weighting <strong>of</strong> three.
Four are ranked as Fundamental with a
weighting <strong>of</strong> five, and three are ranked as Beacon with weighting <strong>of</strong> four, as illustrated in figure 5.
8. Valuation stage and decision support
4. Capacity to identify
standards <strong>of</strong>
excellence -benchmark;
relationship networks
and information bases
Partial
5. Effective
dissemination and
capacity building at all
levels
Partial
Organization:
CORPORATE HSE
CONTRIBUTION
1- Marginal
2- Participatory
3- Contributing
4- Beacon
5- Fundamental
8.Valuation <strong>of</strong>
benefits No
7. Critical analysis
<strong>of</strong> corporate HSE
performance
Partial
6. Governance
structured for
validation
Yes
In order to understand <strong>the</strong> dynamics <strong>of</strong> <strong>the</strong> application procedure as a whole, immediately following
<strong>the</strong> SAV-analysis <strong>of</strong> each asset, <strong>the</strong> information with respect to maintenance costs, projections <strong>of</strong>
future
value creation, investments required for growth <strong>of</strong> intangible assets, etc.,
are consolidated by
<strong>the</strong> organization's managers. From <strong>the</strong>re, <strong>the</strong> evaluation <strong>of</strong> source characteristics commences, mainly
with regard to ways <strong>of</strong> creating value, and managing risks and uncertainties.
Based on <strong>the</strong> financial information, <strong>the</strong> value <strong>of</strong> <strong>the</strong> impact is calculated and entered into <strong>the</strong> Excel
and web-based simulators. The simulators <strong>the</strong>n perform <strong>the</strong> respective valuation calculations. Here,
two scenarios are considered, A and B. The difference between <strong>the</strong> two scenarios stems from <strong>the</strong>
combination <strong>of</strong> resilience and volatility to produce <strong>the</strong> values <strong>of</strong> <strong>the</strong> two scenarios, as follows: The
greater
<strong>the</strong> resilience factor, <strong>the</strong> lower
<strong>the</strong> volatility <strong>of</strong> values with respect to <strong>the</strong> organization. And, <strong>the</strong>
lower <strong>the</strong> resilience, <strong>the</strong> greater <strong>the</strong> volatility <strong>of</strong> values. Thus, scenario A reflects greater volatility;
scenario B reflects lower volatility.
The valuation depends on how <strong>the</strong> assessment is performed. In this case, <strong>the</strong> aim is to derive a ratio
<strong>of</strong> <strong>the</strong> value <strong>of</strong> <strong>the</strong> intangible asset with <strong>the</strong> performance <strong>of</strong> <strong>the</strong> organization under assessment, and
unrelated to <strong>the</strong> market value <strong>of</strong> <strong>the</strong> corporation to which <strong>the</strong> organization belongs. The methods <strong>of</strong>
valuation using market value are more susceptible to systemic volatility: changes in <strong>the</strong> local or global
macroeconomic scenario affect business performance and, <strong>the</strong>refore, <strong>the</strong> valuation <strong>of</strong> intangibles will
also be so affected.
914
63%
4.17
3
POTENTIAL
LEVEL OF
CONTRIBUTION