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. It struggles to account for today’s intangible assets—services, insights, and networks. HBR STAFF.

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Startups Could Fundamentally Change the Way Big Investors Operate

Harvard Business

Innovation has the potential to transform the investment industry. Small startup firms are already developing proprietary technologies — such as machine vision, deep learning, and other innovations —– that could help large investors evaluate opportunities and risks with far greater accuracy and efficiency than was previously possible. Yet the world’s largest funds are closed off from these innovations.

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How Software Is Helping Big Companies Dominate

Harvard Business

They’re more productive , more profitable , more innovative , and they pay better. And academic research has found that rising industry concentration correlates with the patent-intensity of an industry, suggesting “that the industries becoming more concentrated are those with faster technological progress.” All of this suggests that technology, and specifically software, is behind the growing dominance of big companies. Architectural Innovation.

Blockbuster Becomes a Casualty of Big Bang Disruption

Harvard Business Review

The shutdown will be completed by early 2014, bringing to a close a dramatic story of rise and fall at the hands of disruptive technological innovation, or what we have called “ big bang disruption.” ” Classic disruptive innovation says that a cheaper, but lower-quality, innovator can eventually overtake an incumbent by gradually siphoning off customers the incumbent doesn’t find it profitable to defend.

A Novel Idea for Putting Sidelined Cash to Work

Harvard Business Review

To drive shareholder value and be a catalyst for economic recovery, our nation's largest companies must deploy their assets in a productive manner, either internally for innovation and organic growth, or externally for corporate venture capital investments, research partnerships, joint ventures and alliances, or acquisitions. That would foster job creation, innovation, and growth simultaneously.

On Creative Accounting: Two Creativity Myths

Harvard Business Review

Wall Street's " financial innovations " of recent years seem to have given creativity a bad name. Hitler's human extermination empire was quite new in its scope, organization, and technology. The Balanced Scorecard's primary form of novelty is that it takes into account the intangible assets that are so crucial for information-age companies. Tags: Creativity Ethics Innovation GAAP "Creative accounting" is really bad. Except when it's good.

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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. homes and cars) and intangible (e.g. expertise and relationships) assets, firms can gain these advantages of the Network Orchestration business model.

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