Harvard Business Review

JANUARY 11, 2012

In The Innovator's Guide to Growth we suggested that companies should create one-page "Idea Resumes" that capture the essence of an idea on a single PowerPoint slide. If you don't have an innovation strategy , go and create one.). Note what isn't part of the decision: an idea's net present value or return on investment.

Company 15

Company Net Present Value How To Proposal 15

Harvard Business Review

SEPTEMBER 13, 2017

We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation. Traditional companies therefore rely on two strategies.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

MAY 4, 2017

This has led to high levels of AWS specific investment from innovators like CloudHealth Technologies, Qubole, Mapbox, and the like. That ecosystem investment reinforces the value proposition and drives more developer adoption. The Refresher: Net Present Value. So is Facebook. So is Google. The list goes on. Related Video.

Collison 10

Collison Net Present Value Company Short-term 10

Harvard Business Review

DECEMBER 28, 2016

Most CX programs are broken in similar ways: They are not designed with change or innovation in mind. Mistake #1: Forgoing change and innovation. If a score improves, that number is heralded and CX teams use it as evidence of innovation and improvement by the team. Often, these results are accepted at face value.

Attrition 10

Attrition Metrics Net Present Value KPI 10

Harvard Business Review

MAY 1, 2017

In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. The Refresher: Net Present Value. Others reward easy-to-measure improvements in existing processes over less-easily-quantified innovations. Related Video.

ROE 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

NOVEMBER 19, 2015

This can be quantified by analyzing the extent to which the share prices of S&P 500 firms are driven by a firm’s present value of future growth options (PVGO) rather than cash flow from current operations. 3M owes part of its innovative success to the “new product vitality index.”)

Company 8

Company Succession Maturity Business Model 8

Harvard Business Review

DECEMBER 2, 2010

The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target. We call this the Opportunity Value (OV) of an asset. MacMillan is the Ambani Professor of Innovation and Entrepreneurship and Director, Sol C.

NPV 15

NPV Net Present Value Price Engineering 15

Harvard Business Review

SEPTEMBER 27, 2012

Once they understood the rules and their underlying rationale, ALL's employees generated a series of innovative proposals based on what they had to work with. To prioritize projects, for instance, the ALL team could have forecast future cash flows for every potential investment and ranked all proposals on the basis of their net present value.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

Harvard Business Review

APRIL 2, 2014

You know, the future value of money, the present value of money — money today is worth more than in the future because you can invest it and get interest. Instead what he says is let’s have financial innovation that is actually helpful. This stochastic discount factor model is the modern economic update of those, correct?

CAPM 8

CAPM Discount Price Finance 8

Strategy Driven

SEPTEMBER 9, 2011

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. To read Rita’s complete biography, click here.

Innovation 50

Innovation NPV Business Model Constraint 50