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How One Company Made Its Analytics Investment Pay Off

Harvard Business Review

The ABU was set up as a centralized profit center with ambitious targets and with direct reporting to the chief operations officer; most often, similar units are organized as cost centers with no specific targets. The value generated by risk- and operational cost-abating analytics initiatives is measured by their impact on the bottom line.

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Thank You for Doing Your Job

Harvard Business Review

On November 10, 2010, Cisco's stock price dropped 16%, erasing roughly $20 billion of market value in a matter of hours. In fact, this stock market bellwether had just beat earnings estimates by 6%. for the quarter, just barely clearing the consensus estimates of $0.40. Had something catastrophic happened? The problem?

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Calculate How Much Your Company Should Invest in Innovation

Harvard Business Review

Identifying this so-called “growth gap” is critical, because the bigger the gap, the more a company needs to look beyond its current offerings, markets, and business models to find growth opportunities. By reaching new customers in current markets? By stealing share from current competitors?

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How To Really Measure a Company's Innovation Prowess

Harvard Business Review

Part of the problem is there isn't a clear consensus on what marks an innovative company. Return on equity (net income divided by equity) results from multiplying three key operating ratios: Profitability (net income over sales). Operating efficiency (sales over assets). But there are some measurements that try.

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Six Strategy Insights RIM's New CEO Can Use

Harvard Business Review

Trend lines, market sizing, and competitive benchmarks that served companies well during periods of gradual market evolution do little good in industries where new technologies create seismic shifts, demand is uncertain, and rivals emerge from left field. Yet in turbulent times this is dysfunctional.

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How To Really Measure a Company's Innovation Prowess

Harvard Business Review

Part of the problem is there isn't a clear consensus on what marks an innovative company. Return on equity (net income divided by equity) results from multiplying three key operating ratios: Profitability (net income over sales). Operating efficiency (sales over assets). But there are some measurements that try.