Remove Cost of Capital Remove Leadership Remove Technology
article thumbnail

How internal innovators win the game

Innovation Excellence

You can pick up the phone and speak to experts on production, technology, operations, markets, and industries for example. Your company has assets to invest that typically demand a lower return that venture capital because they carry a lower cost of capital. Finally, consider risk diversification.

article thumbnail

How internal innovators win the game

Innovation Excellence

You can pick up the phone and speak to experts on production, technology, operations, markets, and industries for example. Your company has assets to invest that typically demand a lower return that venture capital because they carry a lower cost of capital. Finally, consider risk diversification.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How Passion Can Revolutionize Digital Technology, AND Change The.

Terry Starbucker

Home About Me About This Blog Starbucker’s Amazon Store TerryStarbucker.com Ramblings From a Glass Half Full How Passion Can Revolutionize Digital Technology, AND Change The World: A Video Every Leader Must See by Starbucker on August 29, 2010 In early 1997, its stock price was $4. It was about passion. And about people who have it.

article thumbnail

When "Creative Destruction" Destroys More than It Creates

Harvard Business Review

My colleagues and I at Bain & Company have been tracking this for forty years, and we have never seen companies losing their leadership positions as quickly as they are today. Did it seem "creative" to Nokia shareholders when the company missed the smart phone wave despite having some of the early technology? And for telecom.

article thumbnail

The Three Decisions You Need to Own

Harvard Business Review

At many companies the total cash investment in acquisitions, R&D, and fixed assets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. Today most if not all industries are impacted by digitization—mobile technology, big data, and the like. Decision making Leadership'

P&L 11
article thumbnail

The Case for Investing More in People

Harvard Business Review

This includes more autonomy and agility as well as inspirational leadership. This has not only resulted in less investment in human capital but has also delivered lower total shareholder returns despite a period in which the cost of capital (and thus the cost of investing for growth) has been extraordinarily low.

article thumbnail

The Real Reasons Companies Are So Focused on the Short Term

Harvard Business Review

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.