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The Challenge of Investing in Digital Assets. That fact becomes apparent when you juxtapose the balancesheet of a company like Microsoft with the balancesheet of a company like Siemens. Unlike their industrial peers, managers of asset-light businesses focus little on the balancesheet.
In case you skimmed too fast to get the point, here it is: that favored benchmark of national performance, GDP growth or GDP per capita, is a distortion of reality that guides us to decisions contrary to what people really want. despite hiring some noted academics to mortarboard-wash our conclusions with statistics and citations.
It doesn’t need to be complicated; in one company, a marketing department saved 20 percent after simply benchmarking the money they were spending on external agencies. As a long-term asset of significant value, the brand should be part of those calculations. Too often, the brand is perceived as a “fuzzy” asset that’s hard to quantify.
M is Mass, in this case all the things, people, and assets of your ecosystem. In a traditional business, there is little connectivity or co-creation, so the enterprise value is equal to the “mass” of the company — its human resources, financial assets, intellectual property, and physical goods. Intellectual capital.
Benchmarking Inventory Levels. There are a number of metrics that can be used to benchmark a retailer's inventory levels. Any attempt to use inventory turns to benchmark inventory levels — across retailers or over time for a specific retailer — would have to be done with caution and judgment.
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