The value creation index
- 1 September 2000
- journal article
- Published by Emerald Publishing in Journal of Intellectual Capital
- Vol. 1 (3) , 252-262
- https://doi.org/10.1108/14691930010377919
Abstract
The Cap Gemini Ernst & Young Center for Business Innovation (CBI) has conducted a series of studies on the role of intangibles in creating value in the modern corporation and developed a rigorous, comprehensive model – the value creation index – of value creation for progressive companies, one that enables users to measure the impact of key intangible asset categories on a company’s market value. By devising a set of standardized measures, weighted according to their relative impact, managers have the tools to better drive and monitor their company’s future performance. At the same time, if disclosure rules change in parallel, investors will be armed with a more uniform, less subjective and more robust way of evaluating companies. Over time, the value creation index will evolve, continuing to identify value creation drivers, while remaining sufficiently flexible so it can adapt to the constantly changing nature of companies in the connected economy.Keywords
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