ABSTRACT
This chapter illustrates that business-value is created at the beginning of the business-cycle by investing resources, by processing them, and by creating value that will show up as augmented resources at the end of the business cycle. At the time of the Industrial Revolution managers focused on 3 resources, namely: the land, the facilities and the equipment, and money. These are all tangible resources, i.e. they can be touched, they can be counted, and most importantly, they can be accounted for in monetary terms. To create value, the enterprise invests a configuration that combines both tangible and intangible resources. The chapter shows the model of the 5 corporate capitals, namely: the organizational capital, talent capital, market capital, life and time cycles and the financial capital. The 5 corporate capitals constitute a highly interactive lattice as they work hand-in-hand to create superior business-value and sustainable competitive advantages.
