Innovation Excellence

NOVEMBER 21, 2019

Persistent growth, profit, ROI and NPV are the obvious measures, At least for the big stuff. Innovation activities simply for the sake of doing something without context and insight from the measure may be in fact very misleading.

NPV 99

NPV Innovation Metrics ROI 99

The Idolbuster

JANUARY 17, 2013

“When you build [mathematical] models, you try to make an intelligent metric,” which was based on sizing the market, and estimating the market share based on what the product could do relative to the competition. Sabina explained that she felt “pressured to show there is value in doing the project, a positive NPV.

NPV 36

NPV Sample Project Metrics 36

Harvard Business Review

DECEMBER 23, 2013

If you were looking for a theme song that captures marketing today, you could do worse than pick Queen’s anthem “Under Pressure.” Marketing is under pressure to show results, cut costs, and drive growth. Marketers should welcome it. In our experience, marketing can increase marketing ROI (MROI) by 15 – 20 percent.

Marketing 14

Marketing NPV Short-term Net Present Value 14

Harvard Business Review

FEBRUARY 7, 2011

For decades multinational corporations have poured hundreds of billions of dollars of foreign investments into emerging markets , sometimes preferring the investment climate of "stable" authoritarian regimes over "messy" democracies. Certainly the money at stake is substantial.

NPV 15

NPV Short-term Discount Politics 15

Harvard Business Review

APRIL 19, 2011

The CEO and CFO responded with, "A failure to hit ROI and NPV targets." The head of R&D remembered it as a failure to properly market the innovation. The Chief Marketing Officer recalled that sales and distribution did not achieve planned market presence. Introduce Celebrating Failure Day.

NPV 18

NPV ROI CFO Consensus 18

Harvard Business Review

APRIL 27, 2017

But I long for actions that go beyond admonitions to managers and boards to do better, that give both parties a better chance to stand up to capital markets players, like activist hedge funds, pressuring them to become too short-term focused. However, unlike a bond, common equity is not long-term/forever on predetermined, immutable terms.

Hedge 12

Hedge Short-term Long-term NPV 12

Harvard Business Review

FEBRUARY 24, 2014

While on the surface, the dirty business of fossil fuels is nothing like Silicon Valley, many in the oil business have moved beyond the standard net present value (NPV) model for assessing the merit of investments. Consider the rapid progress Facebook has made on mobile, not only domestically, but in emerging markets.

NPV 10

NPV Net Present Value Industry Video 10