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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.

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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

Acquisitions, bold investment in intangible assets, and attracting talent can ultimately make the difference. Productivity can help; but it is not enough to achieve superstardom. Being in the right sector and geography can help; but this too can be overcome.

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What VW Didn’t Understand About Trust

Harvard Business Review

Decades ago, a company’s market value was nearly equivalent to its tangible assets—buildings, machinery, materials, financial capital, and so on. In 1975 intangible assets were just 17% of the market value of the S&P 500. Take the example of what’s happening in the food industry.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

In contrast, industrial giant GE’s stock price has declined by 44 % over the last year, as news emerged about its first losses in last 50 years. Why do investors react negatively to financial statement losses for an industrial firm but disregard such losses for a digital firm?

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Investors Today Prefer Companies with Fewer Physical Assets

Harvard Business Review

Since the industrial revolution, companies have raced to accumulate the most raw materials, properties, plants, and equipment, believing that owning and having more was the equivalent of being worth more. that companies own compared to other assets. that companies own compared to other assets. This is quite a shift.

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Profit Is Less About Good Management than You Think

Harvard Business Review

Revenue moats are usually linked to intangible assets (including brands and patents), high switching costs, and network economies. Cost moats are linked to the ownership of cheaper or faster processes, favorable locations, unique assets, or firm size.

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How to Navigate a Digital Transformation

Harvard Business Review

Different industries and different business models have always maintained different percentages of these asset types. Manufacturers invest most of their capital into physical assets, while high-tech firms invest in R&D to create new intellectual capital.