This blog is for the students and the instructors (Professor John C. Henderson and myself) to continue the conversations on the role of information technology in modern corporations at Boston University. Please feel free to join the conversation by commenting on our posts and discussions.
Tipping point (for now). This graph reminds me of an article I was just reading about Andrew Lo, a finance professor at MIT, who has come up with the theory of adaptive markets to challenge the efficient market hypothesis.
One of the tenants of his theory is that, "innovation is the key to survival because as risk/reward relation varies through time, the better way of achieving a consistent level of expected returns is to adapt to changing market conditions."
Ultimately, I think this graph is indicative of the market rewarding Apple for successfully learning how to adapt to its surroundings to remain relevant -- think emergent strategy. However, it doesn't seem that the same can be said of Exxon amid the uncertainty and volatility in oil and gas.
Tipping point (for now).
ReplyDeleteThis graph reminds me of an article I was just reading about Andrew Lo, a finance professor at MIT, who has come up with the theory of adaptive markets to challenge the efficient market hypothesis.
One of the tenants of his theory is that, "innovation is the key to survival because as risk/reward relation varies through time, the better way of achieving a consistent level of expected returns is to adapt to changing market conditions."
http://en.wikipedia.org/wiki/Adaptive_market_hypothesis
http://advisoranalyst.com/glablog/2010/09/23/mits-andy-lo-markets-are-adaptive-not-efficient/
Ultimately, I think this graph is indicative of the market rewarding Apple for successfully learning how to adapt to its surroundings to remain relevant -- think emergent strategy. However, it doesn't seem that the same can be said of Exxon amid the uncertainty and volatility in oil and gas.