article thumbnail

When It Pays to Think Like a Finance Manager

Harvard Business Review

Everyone always wants new equipment — new computers or other hot technologies. Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? The two founding partners were both engineers who loved technology. Not long after, the board fired the CEO.

article thumbnail

The Worst Failure of All Is Wasting a Failure

Harvard Business Review

The CEO and CFO responded with, "A failure to hit ROI and NPV targets." In an earlier post , we set out a three-part framework for innovation success: track three kinds of failures (misalignment with corporate will, with current capabilities or technologies, or with market needs/dynamics). Introduce Celebrating Failure Day.

NPV 16
article thumbnail

Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

In the world of technology: the more of something you make, the more valuable it can become. This has led to high levels of AWS specific investment from innovators like CloudHealth Technologies, Qubole, Mapbox, and the like. Next time you're deciding about a big investment, NPV can help you make a more informed decision.