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

Harvard Business

Consider the dramatic shift in the types of assets that create market value. According to Ocean Tomo, a consulting firm focused on intellectual capital, physical assets (plant, property, and equipment) made up more than 80% of the market value of the S&P 500 in 1975. Today, the majority of market value is made up of intangible assets (networks, platforms, intellectual property, customer relationships, big data) more than physical assets.

GDP Is a Wildly Flawed Measure for the Digital Age

Harvard Business

Gross Domestic Product (GDP), our core measure of prosperity, was developed during the industrial age. It struggles to account for today’s intangible assets—services, insights, and networks. As the market, including customers, employees, and investors, shifts the mix of what is done and what is consumed, this most important and commonly used economic indicator, along with Generally Accepted Accounting Principles (GAAP), tells a concerning story. HBR STAFF.

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