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

Harvard Business Review

More troubling, our own research shows that even when business leaders are proactive resource allocators, they are still hesitant to invest in new business models. Consider the dramatic shift in the types of assets that create market value. How much is changing? It is easy to understand why this is the case.

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Do You Know What Your Company’s Data Is Worth?

Harvard Business Review

Data contributes not only to brand equity, but to what constitutes product and service delivery in globally connected and hyper-competitive markets. Using the same formula, Apple’s intangible assets in 2014 were $280 billion — or almost twice the value of its 2015 calculation.

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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. The first step is to pinpoint your starting place.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

In the 2016 book The End of Accounting , NYU Stern Professor Baruch Lev claimed that over the last 100 years or so, financial reports have become less useful in capital market decisions. The current financial accounting model fails today’s companies in yet another respect.

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Investors Today Prefer Companies with Fewer Physical Assets

Harvard Business Review

The health technology and technology services industries are creating highly scalable, and highly desirable, intangible assets. As we mentioned previously, physical assets have a number of drawbacks, compared to digital, intellectual, and relationship assets. Are physical assets still working for them?

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What Apple, Lending Club, and AirBnB Know About Collaborating with Customers

Harvard Business Review

But these co-creation models produce only one-off physical goods, and none represents a fundamental shift in how these companies create value; they’re peripheral to the core business. homes and cars) and intangible (e.g. Through co-creation, companies can access a deep well of customer capabilities, knowledge and assets.

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

Harvard Business Review

stock exchanges has declined by almost 50% from its peak in 1996, despite dramatic increase in aggregate market capitalization. All three factors have become more common over time, which we argue stems from firms’ increasing reliance on intangible and knowledge inputs in their business models. stock exchanges.

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