Harvard Business Review

JULY 31, 2017

As incumbents fight back with their own digital strategies, our research shows that they often trigger a second wave of competition, closer to the notion of Schumpeterian imitation where incumbents start themselves to innovate, sometimes aggressively, against the threat of entrants slashing yet more revenue and profit growth.

Strategy 8

Strategy ROI Technology Cost of Capital 8

Harvard Business Review

OCTOBER 21, 2016

Hoping to alleviate their concerns, this article also provides concrete examples of how sustainability benefits the bottom line. These unpriced natural capital costs are generally internalized until events like floods or droughts cause disruption to production processes or commodity price fluctuation. Fostering innovation.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

JUNE 27, 2012

We have been studying companies that seem to be able to endure and adapt for longer periods of time, and have come to the conclusion that the extinction of once-great innovators is less often caused by technological or market evolution, and more often by self-inflicted wounds and slow cycles of decision and adaptation.

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

APRIL 26, 2017

Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window. The recent partnership between OnDeck and JPMorgan Chase is such an example. ” Can banks out-compete the disruptors?

Banking 11

Banking Stage-Gate Credit Scoring Competitive Advantage 11

Harvard Business Review

MAY 14, 2013

Europe''s $100 billion carbon market, an innovative force in the powerful carbon-reduction approach known as cap and trade, has ceased to function the way it''s supposed to. Share prices for European utilities and industrial companies have fallen too, threatening a wave of credit downgrades and increasing companies'' cost of capital.

Price 8

Price Energy Politics Marketing 8

Harvard Business Review

SEPTEMBER 8, 2014

The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. Smartly reducing assets devoted to activities that earn less than their cost of capital requires good links with evolving market realities. ( Isn’t that a function of risk parameters and the debt-to-equity ratio?

Debt to Equity Ratio 10

Debt to Equity Ratio Cost of Capital Strategy Incentives 10

Harvard Business Review

DECEMBER 13, 2017

Some argue that profits are stagnant because of short-termism—that decades of focusing on current profits over long-run innovativeness has resulted, now, in companies that are hollowed out. One trend that has contributed to short-termism and lower innovativeness is the increased prevalence of outside CEOs.

Short-term 8

Short-term Decentralization Company Trends 8

Harvard Business Review

MAY 25, 2018

Companies are seeking to be quicker on their feet and more innovative. Joint venture deals, for example, actually show returns similar to those of the best acquisitions. Likewise, the airlines have demonstrated that well-constructed alliances can be a powerful way to build market position and capitalize on scale.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8

Strategy Driven

SEPTEMBER 9, 2011

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Net present value [NPV] is a case in point.

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

APRIL 2, 2014

It is used in the more technical end of the financial industry, for example in derivatives valuation. Instead what he says is let’s have financial innovation that is actually helpful. The capital asset pricing model was supposed to allow companies to calculate their cost of capital in a consistent way.

CAPM 8

CAPM Discount Price Finance 8

Harvard Business Review

MARCH 1, 2017

But the solution to this innovation logjam has emerged: blockchain. By reducing transaction costs among all participants in the economy, blockchain supports models of peer-to-peer mass collaboration that could make many of our existing organizational forms redundant. Distributed Database.

Finance 8

Finance IPO Banking Venture Capitalist 8