But it is critically important to consider the intangible, as well. Sveiby argues, in what is arguably an important book, that there are three types of intangible assets. There is the external structure. And last but foremost, there is employee competence. This can make all of the difference.
Competence is one part knowledge, one part ability.
It is knowing combined with doing. Competent employees create the external structures as well as the internal ones. Without them, a company doesn't make much of anything, physical or financial. Sveiby doesn't maintain that it is better to produce software than sedans. And he explains how.