For more than 60 years, investors, analysts, business leaders, and even governments, have classified companies based on industries. First there were Standard Industry Classification codes, which were introduced in 1937, then the North American Industry Classification System, and now we have Standard and Poor’s Global Industry Classification Standard (GICS). 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.
Why Are We Still Classifying Companies by Industry?
Business models are a better way to think about what firms do now.
August 18, 2016
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Sharpening Your Business Acumen. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Take your career to the next level by learning business and finance basics, and developing an enterprise mindset.