Remove Net Present Value Remove Operations Remove Present Value
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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

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. For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1%

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

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.

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Only the CEO Can Make the Big Bets

Harvard Business Review

And using net-present-value estimates for "beginning" ideas is nuts. Incremental innovation can and should be pushed down into the operating levels of the organization. Because they know they would get laughed out of the room if they were to advocate for a hunch. It's being customer-reactive.

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

operating rooms, recovery floors, emergency department), and ancillary departments (e.g., Consider, for example, a surgical patient who starts in the pre-operative area, then moves to the operating room, the post-anesthesia care unit, and the inpatient floor, with occasional side trips for imaging, testing, and physical therapy.

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Match Your Innovation Process to the Results You Want

Harvard Business Review

Incremental innovations can be managed at the operating levels where the people know the customers/consumers best and decisions can be made in a more consensus-driven way with input and agreement between all stakeholder functions. It tends to be short-term, uses familiar (traditional) metrics and development systems like Stage Gate.

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How to Choose the Ideas Your Company Should Invest In

Harvard Business Review

After exploration, there are lots of ways to plan, but at the very least a good plan details the target customer, crucial stakeholders, the essence of the idea, key economics, the commercialization path, proposed operations, the team, financial requirements, and the action plan. What are the assumptions in which you are least confident?

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. The most important concepts to grasp are “how to measure profitability, EBITDA, operating income, revenue, and operating expenses,” he says. The Refresher: Net Present Value.