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Why Are We Still Classifying Companies by Industry?

Harvard Business

Even though these systems are updated regularly, we can no longer rely on standards and measures that were developed in a different age to reflect today’s realities — especially when we’re evaluating tech firms. They have expanded far beyond the “Information Technology” tag attached to them by GICS.

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

Harvard Business

Today, the majority of market value is made up of intangible assets (networks, platforms, intellectual property, customer relationships, big data) more than physical assets. In fact, it’s not even close: intangible assets make up over 80% of the S&P 500’s market value — a complete reversal from 1975.

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The Real Reason Superstar Firms Are Pulling Ahead

Harvard Business

One answer to that first question shows up in study after study: superstar firms are succeeding in large part due to information technology. It could be because “software development typically requires large upfront fixed costs,” meaning that firms that are already pretty large are the ones who can afford to invest in it.