The Horizons Tracker

NOVEMBER 17, 2021

A few years ago I wrote about innovation and entrepreneurship in Norway and Qatar. The author believes that while lower costs of capital would certainly help raise the entrepreneurship rate, it would be most beneficial to entrepreneurs with lower skills. Positive or negative?

Entrepreneur 82

Entrepreneur Long-term Cost of Capital Engineering 82

Harvard Business Review

SEPTEMBER 13, 2017

Our research has found that embedded sustainability drives financial performance through mediating factors such as innovation, operational efficiency, risk reduction, employee recruitment, engagement and retention, customer and supplier loyalty, competitive advantage, reduced cost of capital, and improved marketing and sales.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

SEPTEMBER 4, 2017

We know that great ideas that drive breakthroughs in productivity come from human beings with the time, talent and energy to innovate. One step in reversing this trend is to start treating hours like dollars, with a real opportunity cost. Both Kaizen events and Agile sprints are investments in innovation and human capital productivity.

Human Capital 15

Human Capital Kaizen Agility Energy 15

Harvard Business Review

FEBRUARY 1, 2018

The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders. Investing in true innovation. The lower the discount rate, the more that future cash is worth.)

Supply Chain 9

Supply Chain CEO Discount Retail 9

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. SME lending can remain a big business for banks, but only with deliberate choices about where to play and how to win.

Banking 11

Banking Stage-Gate Credit Scoring Competitive Advantage 11

Harvard Business Review

MAY 25, 2018

Companies are seeking to be quicker on their feet and more innovative. How to make your company more nimble and responsive. Today’s low cost of capital creates a powerful financial incentive to put money to work by investing in a portfolio of ideas and capabilities. Consider today’s trends in M&A.

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