Chains, Shops, and Networks: The Logic of Organizational Value

An accurate understanding of an organization’s value logic (which can also be thought of as its business model) is critical. Accenture’s research into distinctive capabilities, one of the building blocks of high-performance business, shows that a company’s ability to create a customer-centric “value algorithm” is central to the business’s success. At the highest level, a company’s value logic can provide important insights that enable a … [ Read more ]

A New Paradigm for Managing Shareholder Value

A staggering proportion of enterprise value does not depend on current operations, but rather on expectations concerning growth opportunities-what Accenture calls future value. Much of that future value depends, in turn, not on the resources (assets) that traditional accounting practice handles well-i.e. the monetary and physical assets-but on the resources it hardly handles at all-such as, intangible and intellectual capital. Many of the most successful … [ Read more ]