Samsung and Apple – Contrasting Value Creation Models

Apple and Samsung are the leading global smartphone brands. They sell products that essentially do the same things. But ask just about any consumer and they’ll tell you that the companies are radically different. This post explores these two companies using an integrated capital model to explore how and why these differences exist. Continue reading “Samsung and Apple – Contrasting Value Creation Models”

Samsung’s Value Creation Model

As promised, here is a summary model of how Samsung creates value. It’s meant to be a companion piece to the post I wrote last week on Apple. Next week I’ll compare the two.

Of course, between the time I said I was going to research this post and now, Samsung’s Note 7 crisis escalated and the company ended up halting production of the product. 

Here’s a summary by Hiawatha Bray and the NYT of how things look right now on that front. Although it’s not the purpose of this post, this analysis might shed light on Samsung’s strength and capacity to survive this crisis.  Continue reading “Samsung’s Value Creation Model”

How to Develop a Corporate Value Creation Model

The phrase value creation gets thrown around a lot lately.  At a fundamental level, the purpose of every company is to create sustainable value for shareholders and stakeholders.

Value creation is at the heart of the integrated reporting framework from the IIRC. And the latest intellectual capital model from WICI. These models and the dozens that have come before them are all helpful introductions to the concept of value creation.

The problem is that these models are all generic. They tell you that there are categories of capitals that every company has. It’s much more powerful to take the concept a step further and identify the actual capitals that a specific company has. Continue reading “How to Develop a Corporate Value Creation Model”

Six Capitals – Or Is It Seven?

the multi-capital model is like a bowl of various fruits

Our economies continue to change at an incredible rate. The industrial era is being pushed aside none too soon. Our societies and our planet cannot afford business models that maximize short-term profits at the expense of communities, the environment and even the long-term interest of the companies themselves. The good news is that information technology provides us the tools to re-make businesses to drive innovation and solve problems in new and more effective ways. Success today demands holistic management of tangible, natural and intangible digital and knowledge assets. Continue reading “Six Capitals – Or Is It Seven?”