Harvard Business Review

OCTOBER 15, 2012

The concept of open innovation has moved from business phrase to business reality over the last ten years. When PARC became a for-profit subsidiary of Xerox to practice open innovation in 2002, Henry Chesbrough had not yet published his book Open Innovation and the concept was not well understood.

Innovation 8

Innovation Execution Net Present Value Open-book 8

Harvard Business Review

MAY 4, 2017

When your product can become more valuable to your customers over time, the way you prioritize building features and harvesting profits within a business needs to change. This has led to high levels of AWS specific investment from innovators like CloudHealth Technologies, Qubole, Mapbox, and the like. The Refresher: Net Present Value.

Collison 9

Collison Net Present Value Company Short-term 9

Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation. Traditional companies therefore rely on two strategies.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

DECEMBER 2, 2010

To do this, we combine two separate frameworks: the first is the Three Horizon strategic model developed by McKinsey. The other is a process called Opportunity Engineering (OE) that instills a different way to look at value. We call this the Opportunity Value (OV) of an asset.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

MAY 1, 2017

In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. The Refresher: Net Present Value. In these settings, investors should value strategies that accelerate growth over those that improve margins (see the chart below).

ROE 14

ROE Long-term GDP Six Sigma 14

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. Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. But most of your customers don’t care.

Innovation 50

Innovation NPV Business Model Constraint 50