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jerryking : multiples   1

The value shift: Why CFOs should lead the charge in the digital age | Deloitte US | CFO Program
William (Bill)J. Ribaudo, a partner at Deloitte & Touche LLP

Given CFOs’ fiduciary responsibility to deliver shareholder value, it makes sense that they should be leaders in digital business model innovation. When the evidence shows that each marginal dollar can be spent to generate value at a multiplier of 1, 2, 4, or 8 times revenue.

Four business models driving value

The rise of intangibles as a part of total market and corporate value has occurred in conjunction with the proliferation of new business models. Our research, in fact, shows that almost every company fits into one of four types business models, regardless of industry or function—and each one corresponds to a shift in technology and asset structure. Specifically, companies predominantly fall into one of the following categories, based on the way they create value:

Asset Builders. These companies build, develop, and lease physical assets to make, market, distribute, and sell physical things. Examples include everything from automakers to chemical manufacturers, big box retailers, and distribution and delivery businesses.
Service Providers. These companies hire employees who provide services to customers or produce billable hours for which they charge. Examples include consulting firms and financial institutions.
Technology Creators. These companies develop and sell intellectual property such as software, analytics, pharmaceuticals, and biotechnology. Examples include software, big-data tools, and medical-device companies.
Network Orchestrators. These companies create a network of peers in which the participants interact and share in the value creation. They may sell products or services, build relationships, share advice, give reviews, collaborate, co-create, and more. Examples include online financial exchanges, social media businesses, and credit card companies.
business_models  CFOs  Deloitte  digital_economy  ecosystems  information_flows  intangibles  multiplier_effect  multiples  networks  orchestration  platforms  physical_assets  shareholder_value  taxonomy  valuations  value_creation  value_migration 
september 2016 by jerryking

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