Remove Business Model Remove Intangible Assets Remove Operations Remove Technology
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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

Curiously, companies are allowed to report purchased brands and intangibles as assets on balance sheet, creating distortions between earnings and assets of digital companies that rely on organic growth versus acquisitions. Its value growth is powered by the network in place, not by increments of operating costs.

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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. Customer co-creation is central to the Network Orchestration business model.

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

Harvard Business Review

All three factors have become more common over time, which we argue stems from firms’ increasing reliance on intangible and knowledge inputs in their business models. Such acquisitions become more lucrative with rising first-mover advantages, pace of technological development, and network externality.

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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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How Software Is Helping Big Companies Dominate

Harvard Business Review

And academic research has found that rising industry concentration correlates with the patent-intensity of an industry, suggesting “that the industries becoming more concentrated are those with faster technological progress.” They are becoming costs of doing business that must be paid by all but provide distinction to none.”