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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 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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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. If not, your transformation is sure to stall out.

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

Harvard Business Review

Our conclusion is supported by the fact that in each of the first three five-year intervals in the 21st century, 2001−2005, 2005−2010, and 2011−2015, the largest number of net delists, defined as the number of delisting firms minus the number of listing firms, occurred in software, electronics, and computer industry.

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Why Family Businesses Come Roaring out of Recessions

Harvard Business Review

(Tobin’s q is the ratio between a company’s market capitalization and the replacement cost of its tangible assets, with a higher ratio indicating that a company has more intangible assets such as patents, brands, leadership etc., Leadership Marketing' during the growth years to 0.8 during recessions.

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What the Companies That Predict the Future Do Differently

Harvard Business Review

Such models play a part in the predictive future, but the industrial Internet and expanded communications capabilities change the nature of information products. The ultimate goal is to treat information as a tangible flow rather than an intangible asset stuck on the balance sheet. Information & technology Leadership'