Remove Career Remove GAAP Remove Intangible Assets Remove Intellectual Capital

Why Leaders Are Still So Hesitant to Invest in New Business Models

Harvard Business

Despite the fact that executives could improve the value and performance of their companies by shifting capital from under-performing business units to better performing units, most choose to allocate their resources the same way year after year. Consider the dramatic shift in the types of assets that create market value. In fact, it’s not even close: intangible assets make up over 80% of the S&P 500’s market value — a complete reversal from 1975.