In a world rapidly switching to digital business models, the old ways of classifying industries and measuring business performances do not suffice anymore. So argue Barry Libert, CEO of OpenMatters, Megan Beck, the chief insights officer, and Wharton marketing professor Jerry (Yoram) Wind. In this opinion piece, they say it’s time to upgrade Standard & Poor’s Global Industry Classification Standard (GICS) and GAAP (Generally Accepted Accounting Principles) to more fully reflect the value of intangible assets as digital companies take the lead in this economy. The top market cap rankings in the S&P 500 already show this shift, with tech titans coming out on top and supplanting industrial firms.
Authors: Barry Libert, Jerry Wind, Megan Beck