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EVVICA™, a valuation model for intellectual asset‐rich businesses

Gavin A. McCutcheon (Intellectual Assets Centre, Glasgow, UK.)

Measuring Business Excellence

ISSN: 1368-3047

Article publication date: 30 May 2008




The purpose of this paper is to show how the Estimated Value Via Intellectual Capital Analysis (EVVICA™) model, which represents one way the analysis of human, relational, and structural capital in conjunction with the renewal capacity of a business, can be used to yield a more accurate depiction of future worth.


The paper provides empirical evidence about the use of a managerial model on companies' performance based on the assessment and management of the knowledge assets founding their processes.


As reliance on intellectual assets increasingly becomes the dominant factor within business innovation and development cycles, application of conventional valuation models is becoming consequently less reliable. Discounted cash‐flows do not adequately depict the future value of such IA‐rich businesses and do not reflect their transformational nature. Operating within turbulent markets where the capacity to continually adapt and redefine is crucial, a new valuation model is clearly required to complement existing financial tools.

Practical implications

Combining alternative, possibly simultaneous, revenue generation possibilities within the model, more meaningful evaluations are possible which, in addition, illustrate the strengths and weaknesses of the business proposition and its capacity for sustainable change.


The paper introduces EVVICA™, a useful valuation model for intellectual asset‐rich businesses.



McCutcheon, G.A. (2008), "EVVICA™, a valuation model for intellectual asset‐rich businesses", Measuring Business Excellence, Vol. 12 No. 2, pp. 79-96.



Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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