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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource. Analysts increasingly rely on non-GAAP metrics.

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business Review

Currently, firms’ first report net profits and then back out many of these one-time items to present a non-GAAP (Generally Accepted Accounting Principles) profit number. Because investors consider these non-GAAP numbers to be value-relevant, we propose a more direct way for them to be calculated.

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The Dangers of Digital Protectionism

Harvard Business Review

These solutions lie at the intersection of technology development by companies and policy formulation by governments. Fifth, in contexts where digital trade agreements do not exist and are unlikely in the foreseeable future, develop nonbinding norms and principles, leaving implementation to national governments. In contrast, the U.S.

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

Harvard Business Review

According to our research at the SEI Center for Advanced Studies in Management , it’s the beliefs of leaders that drive organizational investments, board selection, and management team development and selection, and these beliefs do not change quickly. Outdated beliefs about the world can linger for decades in a leadership team.

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Calculating the Market Value of Leadership

Harvard Business Review

GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. The leadership ratings index we have developed has two dimensions, or domains: individual and organizational.

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How B2B Software Vendors Can Help Their Customers Benchmark

Harvard Business Review

Software and other companies that develop data mirrors and scores can grow their top and bottom lines with little or no marginal costs by building investable indices that correlate their unique insight and data to investor returns. Kensho uses not just raw financial data but data from all sorts of ‘alternative’ sources.).

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GDP Is a Wildly Flawed Measure for the Digital Age

Harvard Business Review

Gross Domestic Product (GDP), our core measure of prosperity, was developed during the industrial age. physical capital), rather than today’s growth drivers of developing and creating human, intellectual, and network capital. It struggles to account for today’s intangible assets—services, insights, and networks.

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