08/10/2008

Indesit Company takes overall 1st prize in the 2008 Intellectual Capital Value Awards. The Company is also acclaimed for courage in innovation in the Industry category.

A survey by Summit and Neopolis shows a growing focus on the value of human capital, with new development policies and methods of measuring companies’ intangible assets.

Fabriano, 8th October 2008 – Indesit Company won the overall 1st prize at the Intellectual Capital Value Awards, which are given to companies that show outstanding commitment to promoting and developing intellectual capital. The prize ceremony is taking place today in the headquarters of Assolombarda in Milan. Indesit Company was also ranked top in the Industry category for the second year running “for its proven capacity to manage change and its commitment to developing intellectual capital,” reads the citation, “and for the courage it shows in innovating, through its design and production of unique, avant-garde products”. For Indesit Company, intellectual capital is of strategic importance in its global development as a Group. This is why the Company constantly invests in the development of its human resources and all its intangible assets, which are so crucial to competitiveness. Over the years, this policy has yielded impressive results in terms of innovation, as seen in a stream of new products with high performance and eco-compatibility profiles. Innovation has always been a priority for Indesit Company, being key to growth, creation of value and sustainability. Every year, the Company completely renews at least 50% of its products thanks to massive investment programmes: in 2008, €45m went to research & development and new products, almost a third of the Group’s total investments. Indesit’s innovation model, from the design point of view, is based on a process of networking that involves suppliers, manufacturers of home appliance related goods, universities and other research bodies in Italy and beyond (including Boston’s MIT). Indesit thus establishes collaboration relationships right from the initial concept design and development phases. The 2008 survey and awards, which saw an exceptionally high level of participation (over 100 companies and other organizations), were carried out in collaboration with NeoPolis, a consultancy specializing in business organization. The survey showed there is increasing interest in intellectual capital across various types of organization and that this is translating into new strategies to define and promote corporate identities both internally and externally. Around 80% of the companies competing in the ICV programme, in fact, have produced documents illustrating their corporate vision and mission and most of them publish such documents both internally and externally. The value of intangibles The questionnaires and other documentation collected by the survey demonstrate that intellectual capital is generally considered a source of value in certain business circles. Awareness of the importance of issues relating to intangibles is reflected in the numerous activities and practices designed to develop intellectual capital, which all require resources, time and effort. Most of the respondent companies, for example, have a more or less detailed strategy and underlying procedures and rules. In 90% of the cases examined, “performance management”, like quality, is a well developed, organization-wide process. Barriers to systematic development There are, however, certain problems in implementing clear and specific action in this direction. Such difficulties are seen, for example, in identifying useful “measures of competency” that adequately translate corporate values into organizational patterns of behaviour than can be monitored and cultivated. Half of the companies participating in the ICV award programme have not, in fact, instituted any formal link between their intangible assets and their capacity to be competitive. Only 3% of respondent companies measure the ROI in human capital with any accuracy. Human resources, in conclusion, are seen more from the point of view of cost than opportunity. Intangible capital is one of the foundations of the enterprise model The survey conducted by Summit and Neo-Polis also points to the need for greater clarity and control over the various factors at play. The field of intangibles is still a complex and rather confusing one in terms of its perimeter, actual content, idioms and various interpretational issues. There have been many initiatives in the field but more needs to be done to translate them into actions, instruments and projects that will effectively help a business to grow. The operating management of intangible assets is still seen as one of the many aspects of the traditional model of enterprise and management, based on budgets and profits. There is a growing perception of the value of intellectual capital, however, as a basic factor in the achievement of tangible objectives. Indesit Company is Europe’s second largest manufacturer of household appliances by market share and the world’s fifth. Founded in 1975 by the current chairman Vittorio Merloni and listed on the Milan stock exchange since 1987, the Group posted sales of over €3.4 billion in 2007, having turned out around 16 million appliances. Indesit, Hotpoint-Ariston and Scholtès are the Group’s main brands. Indesit Company operates through 17 production facilities and 24 commercial branches worldwide and employs over 17,000 people.


For further information:
Press Office
Federico Ziller, phone: +39 0732 66 2432, cell. 335 75 55 508
e-mail: federico.ziller@indesit.com
Chiara Iasiuolo, phone: +39 0732 66 2048, cell. 334 66 60 247
e-mail: chiara.iasiuolo@indesit.com