1. Bords de la Seine a Argenteuil (Monet)

2. Why? How much? The intangible: is anything you cant touch, see, taste, hear or smell only exists inside your head but still creates value 3. Services dominate the transaction value Services are always intangible You can only value a service based on expectation Expectation is shaped by intangible claims and knowledge 4. $24.5 billion $15.9 billion $11.9 billion $7.7 billion $6.5 billion $5 billion $3.1 billion 5. $1.3 trillion Source: Forbes 6. $320 billion Source: Nielsen Global AdView Pulse 7. Intangible products make up a huge proportion of the global economy They are essential to every companys profitability A price must be put on them 8. Type 1: Pure intangible information only 9. $4 trillion 10. Type 1: Pure intangible information only Type 2: Intangible aspects of physical products 11. $5-7 trillion 12. Type 1: Pure intangible information only Type 2: Intangible aspects of physical products Type 3: Goods that are different but most of us cant tell 13. $4 trillion 14. Jackson Pollock 15. Type 1: Pure intangible information only Type 2: Intangible aspects of physical products Type 3: Goods that are different but most of us cant tell Type 4:Tangible goods which meet a need that is intangible 16. $25 trillion 17. Type 1: Pure intangible information only Type 2: Intangible aspects of physical products Type 3: Goods that are different but most of us cant tell Type 4:Tangible goods which meet a need that is intangible Type 5:Tangible goods and needs which arise from a deeper intangible need 18. $20 trillion 19. 16 59 Trillions of $ Tangible Intangible 20. Shared knowledge among the wearers friends and acquaintances An investment byValentino in creating that knowledge The confidence of the wearer which arises from that knowledge 21. Bords de la Seine a Argenteuil (Monet) 22. Expectation of resale value Shared assumptions about authenticity 23. Assumption of fairness but whats a reasonable price? 24. A story Memories Bragging rights 25. The world is complicated - how do customers make sense of it? Through stories. 26. Shared culture 27. Intangible value exists not in the object, but in the common assumptions of the world around it 28. Pairwise comparison Anchoring Limits on information processing Priming and confirmation bias 1 2 3 4 29. The value of similar things Other numbers we know A limited subset of information The language we use to think and talk about it 1 2 3 4 30. An object contains certain objective facts We interpret those facts in the light of knowledge This becomes the subjective nature of the object The objects value now depends on our background knowledge 31. Limited editions Unique objects If something cant be replaced or obtained, theres one less competitor to hold down its value 32. We believe in novelty: a kind of magic in the new Copies are one step behind The originator of a thing must understand it better 33. We like to know the background to things We believe in causality The story stimulates a richer interaction with the object 34. We want to influence what others think of us Objects trigger their interpretations just like our own 35. The object doesnt only have value to us also to others We predict future experiences or consequences 36. Nike sneakers Partnership with KanyeWest Limited edition of 3000 pairs Retail price $275 Subsequently auctioned for $2750+ Some pairs $90,000 Image: BornRich.com 37. Consulting firm Expertise/IP is shared widely across the firm But some people are more highly valued 38. The person who wrote the book The person who consulted for Bill Gates The person whos been onTV The person theyve heard of Symbols of expertise are more measurable than actual expertise 39. Got different people into different media Pro bono consulting for well-known charities/projects Identified different conversations their clients might have and chose different ways to participate in those conversations Created profile for multiple staff members, not just senior ones 40. So why use tangible products to create intangible value? Credible signalling Salience Simplification Lack of self-control 41. The intangible is ever more important 42. Everyone seeks purpose, a narrative for their life Their choices create that purpose You can collaborate with them to create it 43. People connect through language and symbols You can be that connection You unlock new relations between people, groups and cultures 44. Already, 75% of the economy is services Half of that is symbolic services It is growing inexorably In the future, everything will be mediated through the intangible 45. Start building itTODAY.