Remove GAAP Remove Innovation Remove Marketing Remove Technology

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

The market caps of just four companies, Apple, Alphabet, Amazon, and Microsoft, now exceed $3 trillion. Their combined assets of $944 billion are an order of magnitude lower than the combined assets of $7,700 billion of the largest 3,177 companies in 1986, when the aggregate market capitalization reached $3 trillion for the first time. CFOs of these companies themselves admit that they cannot justify their market capitalizations based on traditional metrics.


GDP Is a Wildly Flawed Measure for the Digital Age

Harvard Business

New workers embarking on their careers are finding that their education is incomplete in many areas essential to our technology-driven lives today. While all of these are contributing factors, the major factor, in our view, is the deflationary effect of technology, which our measurement systems fail to account for. In the process of creating more efficient, happy, and technologically supported lives, we may have to blow up and recreate how we gauge economic prosperity and growth.

GDP 44

The Dangers of Digital Protectionism

Harvard Business

Still others hope to create market barriers for global companies — a form of digital protectionism. These include access to digital goods and services, being part of global supply chains, accelerating and partaking in the fruits of innovation, and helping citizens access information, entertainment, and connectivity on a worldwide basis. These solutions lie at the intersection of technology development by companies and policy formulation by governments.