Assets are crucial elements that reflect company value; their performance indicates an organization’s financial efficiency. Brands have started becoming more attentive to intangible assets more than the tangible assets, as they are oftentimes are more valuable than the latter. However, organizations still need to find ways to manage their tangible assets since they depreciate considerably and reach the end of their lifecycle faster than their intangible counterparts. For this reason, organizations need to be innovative when utilizing their assets to generate profit in the long run effectively.
INNOVATING ASSETS
Over the course of doing business, many brands might reach a point where their assets become inadequate. Subsequently, some brands have taken this as an opportunity to repurpose their tangible assets. For instance, Panasonic has transformed its old factory town into a smart city—Fujisawa Sustainable Smart Town (FSST). The town provides sustainable housing for its residents while simultaneously using it as an opportunity to promote its capabilities, products, and services while experimenting with its technology. The FSST promotes an “Eco & Smart” way of living though aspects such as security, energy, mobility, and wellness. The community has over 1,000 households and has already welcomed more than 3,000 groups of visitors to observe the FSST model. This innovative utilization of inoperative land has made Panasonic globally acclaimed for its sustainability. It has been certified by various organizations and adopted as a model by the Ministry of the Environment. After the success of FSST, Panasonic has established a second bright town in Tsunashima and the third town Suita.
The case above demonstrates that brands can benefit from employing their assets in new ways. Panasonic has turned their unused assets into something that contributes tremendous value to its portfolio in immeasurable ways, as the projects have become globally renowned. Panasonic has set a GREAT example of how to use its tangible assets in an environmentally friendly approach, that avoided demolishing the unused factory sites. This may inspire brands to be innovative in capitalizing on their assets or other components of their business.
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