article thumbnail

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

Harvard Business Review

Today, the majority of market value is made up of intangible assets (networks, platforms, intellectual property, customer relationships, big data) more than physical assets. 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.

article thumbnail

GDP Is a Wildly Flawed Measure for the Digital Age

Harvard Business Review

It struggles to account for today’s intangible assets—services, insights, and networks. If we don’t, we are doomed to using the wrong measures to allocate our precious human and financial capital and to choosing the wrong leaders who will make the wrong decisions.

GDP 8