Remove Business Model Remove Development Remove Intangible Assets Remove Operations
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How to Navigate a Digital Transformation

Harvard Business Review

Different industries and different business models have always maintained different percentages of these asset types. Manufacturers invest most of their capital into physical assets, while high-tech firms invest in R&D to create new intellectual capital. The first step is to pinpoint your starting place.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

Contrast Walmart’ $160 billion of hard assets for its $300 billion valuation against Facebook’s $9 billion dollars of hard assets for its $500 billion valuation. The economic purpose of these intangible investments is no different than that of an industrial company’s factories and buildings.

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What Apple, Lending Club, and AirBnB Know About Collaborating with Customers

Harvard Business Review

But these co-creation models produce only one-off physical goods, and none represents a fundamental shift in how these companies create value; they’re peripheral to the core business. homes and cars) and intangible (e.g. Over its lifetime, the app store has generated more than $25 billion for developers.

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Why We Shouldn’t Worry About the Declining Number of Public Companies

Harvard Business Review

In a parallel development, the number of companies listed on U.S. The number of listed firms can decline because of three developments: 1) bankruptcy, failure, or closure of listed firms, 2) delisting of firms going private or acquired, and 3) decrease in number of initial public offerings (IPOs). westend61/Getty Images.

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What the Companies That Predict the Future Do Differently

Harvard Business Review

Consider the example of a manufacturer of production equipment that collects sensor-based telemetry about its machines’ operations, the status of their parts, their performance, their resource consumption, and other data. The ultimate goal is to treat information as a tangible flow rather than an intangible asset stuck on the balance sheet.

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What the Companies That Predict the Future Do Differently

Harvard Business Review

Consider the example of a manufacturer of production equipment that collects sensor-based telemetry about its machines’ operations, the status of their parts, their performance, their resource consumption, and other data. This monitoring turns up an anomaly at a key customer that indicates a failure is imminent.

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How Software Is Helping Big Companies Dominate

Harvard Business Review

Even outside of the tech sector, the employment of more software developers is associated with a greater increase in industry concentration, and this relationship appears to be causal. This model, where proprietary software pairs with other strengths to form competitive advantage, is only becoming more common.