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Can We Quantify the Value of Connected Devices?

Harvard Business Review

More impressively, by linking all the machines together, they were able to predict — and subsequently improve — overall process reliability and product quality. Combining these creates a P&L and a projection, which through a discounted cash flow analysis yields an NPV, which can be used to assess valuation.

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What Markets Do and Don’t Get About Innovation

Harvard Business Review

Quality-sustaining – Christensen’s “sustaining innovations”: incremental improvements to product performance, leading to higher cost; companies’ bread-and-butter when products aren’t yet good enough. Instead, markets often miscategorize low-end disruptors as low-quality incumbents.