Remove Development Remove Intangible Assets Remove Leadership Remove Technology
article thumbnail

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

Harvard Business Review

As technology continues to change and challenge even the most successful incumbent organizations in every industry, the cost of inertia is growing. Consider the dramatic shift in the types of assets that create market value. Despite the shift to intangible assets, executives and their strategists are sticking to the status quo.

article thumbnail

Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

Contrast Walmart’ $160 billion of hard assets for its $300 billion valuation against Facebook’s $9 billion dollars of hard assets for its $500 billion valuation. The economic purpose of these intangible investments is no different than that of an industrial company’s factories and buildings.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Navigate a Digital Transformation

Harvard Business Review

Manufacturers invest most of their capital into physical assets, while high-tech firms invest in R&D to create new intellectual capital. But all assets are not created equal, especially as the technological landscape changes. Organizational transformation must begin with a leadership transformation.

article thumbnail

What It Will Take to Fix HR

Harvard Business Review

Put the most strategic pieces into the hands of up-and-comers passing through the leadership-development revolving door? Baseline financial skills are still essential, but international experience, industry knowledge, investor relations acumen, technology expertise, and strategic prowess are now just as much part of the package.

CFO 11
article thumbnail

What Apple, Lending Club, and AirBnB Know About Collaborating with Customers

Harvard Business Review

Today, however, by exploiting new digital technologies, firms like Apple, Lending Club, and AirBnB have made customer co-creation of value central to their business models and in doing so now rank among the world’s most innovative and valuable firms. Over its lifetime, the app store has generated more than $25 billion for developers.

CRM 8
article thumbnail

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

Harvard Business Review

In a parallel development, the number of companies listed on U.S. The number of listed firms can decline because of three developments: 1) bankruptcy, failure, or closure of listed firms, 2) delisting of firms going private or acquired, and 3) decrease in number of initial public offerings (IPOs). westend61/Getty Images.

IPO 11
article thumbnail

What the Companies That Predict the Future Do Differently

Harvard Business Review

The most forward-thinking companies are developing new business models to create value from these kinds of information exchanges. (2) 2) Develop open multiple multi-sided relationships: Altruism or openness alone will not give rise to ready access to the diversity of data required to understand the predictive future.