Remove Development Remove Innovation Remove NPV Remove System
article thumbnail

Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

Even Dell, famous for eschewing acquisitions in favor of organic growth, has thrown in the towel with its $5 billion acquisition of Perot Systems. To do this, we combine two separate frameworks: the first is the Three Horizon strategic model developed by McKinsey. The 3 Horizons model breaks down strategy into three parts.

NPV 13
article thumbnail

Old Buildings Are U.S. Cities’ Biggest Sustainability Challenge

Harvard Business Review

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. Innovation in Cities. This approach has been made possible by the advent of low-cost sensing technology and the ability to acquire data from building systems and energy-consuming equipment.

NPV 8
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Reflecting on David Garvin’s Imprint on Management

Harvard Business Review

Garvin was a generalist more than a specialist, perhaps because he came of age at HBS during the 1980s, when the school’s primary focus was the development of skilled general managers. Kaplan’s balanced scorecard or Clayton Christensen’s disruptive innovation. He didn’t produce one signature idea, like Robert S.

article thumbnail

Is Your Business Biased Against Innovation?

Strategy Driven

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Net present value [NPV] is a case in point. 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.