Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business

When Patrick Collison, CEO of electronic payments company Stripe, helped kick off our second-year strategy course at the Stanford Graduate School of Business this year, he observed that this has created one of the most profound differences in decision criteria between leaders in industrial-era and internet-era companies. When your product can become more valuable to your customers over time, the way you prioritize building features and harvesting profits within a business needs to change.