brandannual 2019

Finance & IP
Foto: Fashion Collection
Middlesex University
Foto: istockphoto.com
Foto: Menswear Market
Foto: Avasta
LABEL: Migration from branding cattle to generic shoes to branded shoes to self-identifying shoes (Louboutins)
ered expenditures and expenses are now looked upon as
assets – organizations are evaluating historical activities
as assets, measuring the sources of these costs, and learning
to create more value out of that underlying knowledge.
Note that marketing, and how it was expenses while
building brands is one of the most prominent expenses
that build assets over time when done right.
At the same time, companies that undertaken this process
to recognize their in-depth knowledge of expenses as
assets defend this information fiercely as a competitive
advantage to drive profitability and new revenue. Yet, we
are still at infancy in articulating and accounting for this
new way of generating value across organizations. For
example, for decades marketing has been perceived as
cost by organizations, yet, when reviewed according to
the new paradigm, the information collected and created
by marketing becomes an asset that begets more value for
the organization by identifying where and how the brand
of the organization does or can drive value and profitable
revenue in the future. Everything that is taught in
finance and business schools today continues to teach
the opposite, thereby impairing companies in identifying
new sources of value.
In response to this paradigm shift, a collection of
practitioners, academics, and companies have united to
arrive at a consensus on how to uncover and communicate
the basic building blocks of these new sources of
value. An international cooperation agreement which
developed the fundamental building blocks of measuring
brands is the manifestation of this evolution of value
attribution – the ISO 20671:2018 Brand Evaluation standard.
Until very recently, the way that we accounted for
value was to count physical assets and ascribe a value
to them. Today, we have the ability to comprehensively
measure almost anything, physical or otherwise, and
we’re discovering that there is an exponential relationship
in value generation as a result.
This exploration of companies migrating to viewing
themselves as brands, treating intangibles as concrete
sources of value, and exploring how the information
about their expenses can actually generate wealth is a
starting point to encourage the pursuit of new opportunities
inside organizations that are willing.
Understanding brands and intangibles is no longer the
domain of specialists who speak what may sound like a
foreign language. As a result of the efforts of people across
the world to build the fundamental measurement and
reporting methodologies, organizations are now able to
capture the full measurable financial value of their brands
and valuable new assets that were previously impossible
to ascertain. Exploring this new standard of measurement
uncovers previously hidden sources of value, an
invaluable competitive advantage for organizations who
are primed to embrace this paradigm shift, while those
who fail to adopt will inevitably be left behind.
Edgar Baum
Founder & CEO Avasta Incorporated
Avasta Incorporated applies leading edge financial &
mathematical measurement practices to accurately identify
new classes of assets within corporations and to apply
Brand Evaluation Standards inside organizations to generate
exponential returns
The Business and Investment Magazine brandannual 91