Innovations

The new Leader product category, Leadership Software®, includes a significant number of patents, copyrights, trademarks, and technological innovations that are Leader Logic™. Leader's research revealed that The Q Factors prevent even Fortune 500 companies from effectively addressing the leadership workflow and knowledge management dilemmas. Leader has extensive knowledge of software development initiatives within the Fortune 500. In spite of expenditures ranging from $5-$60 million per enterprise, these factors have not been successfully addressed until Leader's breakthrough inventions.

The 21st Century -The Knowledge Century
"Knowledge has become the most important fact of economic life. It is the chief ingredient of what we buy and sell, the raw material with which we work. In the new economy, intellectual capital -- not natural resources, machinery, or even financial capital -- has become the one indispensable asset of corporations."1

"Intellectual Capital,"2 "Knowledge Capital,"3 "Intellectual Assets," and "Knowledge Assets" are but a few of the terms used somewhat interchangeably with reference to the intangible assets of an enterprise. Organizations are familiar with valuing tangible assets like buildings, equipment, machinery, and inventory. However, tabulation of tangible assets does not take into account the significant values associated with intangible assets like know-how, experience, intuition, and creativity, to name a few.

Leif Edvinsson, world-renowned expert on intellectual capital, "calculated that for most organizations the ratio
of the value of intellectual capital to the value of physical and financial capital is between 5:1 and 16:1."4
Chief Financial Officers have begun to address this issue and study its impact. For example, CFO Magazine,
in its February 2000 Knowledge Capital Scoreboard, examined 20 industries for their Knowledge Capital to Book Value ratios. The ratings varied significantly among industries and companies from 0.2:1 to a whopping 194:1. The median is more than 19:1. The CFO article begins, "Increasingly, intangible knowledge assets are dwarfing the value of book assets at many companies... " Despite such realities, technological infrastructure to unify that knowledge has remained "a magical, elusive state."5 Elusive that is, until now.

"If knowledge is the greatest source of wealth, then individuals, companies and nations should invest in the assets that produce and process knowledge."6

Experts in management, finance, accounting, strategy, and human resources agree that knowledge assets represent enormous untapped wealth. Depending upon how the knowledge management market is sliced, it is projected to be a $14-$70 billion a year marketplace within a few short years. However, despite this unprecedented agreement among a plethora of experts (who rarely agree so unanimously), few information technology tools have responded to the challenge adequately. Among the current offerings, even products like groupware have not become the go-to tools that their proponents had hoped. "It is now clear that no one can provide the information knowledge workers and especially executives need, except for themselves...few executives have so far made much of an effort to decide what they need, even less, how to organize it. They have tended to rely on the producers of data -- IT people and accountants to make these decisions for them. But the producers of data cannot possibly know what data the users need so that they become information. Only individual knowledge workers, and especially individual executives, can decide how to organize their information so that it becomes their key to effective action."7

"60 percent of chief executive officers surveyed responded that knowledge management is absolutely critical to the success of their company... they're having a harder time defining a knowledge management strategy that suits their needs."8

Leader has invented a revolutionary web-based system for knowledge/intellectual capital banking called Digital Leaderboard® that is completely user organized and can be implemented rapidly on every desktop in any enterprise of any size. Leader's products and services move the knowledge management dialog from theory to reality. Leader's research teams, led by Founder & Chariman Mike McKibben, have successfully unraveled these knowledge management mysteries.

Knowledge worker productivity is the biggest challenge of the 21st century management challenges.10

1 Thomas A. Stewart. About the Bestseller Intellectual Capital: The New Wealth of Organizations (1997: NY, Bantam Doubleday Dell). 2 Intellectual Capital ( IC ) | Intellectual Assets Intellectual Capital and Intellectual Assets are values assessed with respect to their direct commercial potential and include patents, copyrights, trademarks, goodwill, brand, inventions, innovations, strategy, work product, market share, repeat business, and know-how. 3 Knowledge Capital ( KC ) | Knowledge Assets Knowledge Capital and Knowledge Assets are values assessed with respect to their intrinsic potential to both add and multiply value and include skills, experience, policies and procedures, infrastructure, leadership, expertise, creativity, capacity, practices, resilience, ethics, professionalism, formal and informal networks. 4 Stewart, p.63. 5 GartnerGroup commentary, 03 January, 2000. 6 Stewart, p.31. 7 Peter F. Drucker, Management Challenges for the 21st Century. (NY: 1999 HarperBusiness), p.124. 8 PriceWaterhouseCoopers, Moving Knowledge Management Beyond Technology. (2000: pwcglobal.com). 9 S.L. Mintz, New York Bureau Chief, CFO Magazine, February 2000. 10 Drucker, p.157. Special Note: Select aspects of Leader Logic™ will be disclosed to prospective investors subsequent to execution of appropriate Proprietary & Confidentiality Agreements and initial interviews