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What Happens When Features Are Dropped To Make a Launch Date?

The Idolbuster

Sabinaā€¯ was a product manager working in lifescience industry who was part of a project that had to make that very choice. When the original product was scoped, it was designed to meet a set of unmet customer needs, and she created a healthy revenue forecast to justify the expense of development.

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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

To do this, we combine two separate frameworks: the first is the Three Horizon strategic model developed by McKinsey. Since the Three Horizons represent different levels of uncertainty, they need to be managed and valued differently. The two together, NPV + OV, provide an inclusive but not inflated valuation. Alexander B.

NPV 14
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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

With political upheaval roiling the streets of Cairo, the first concern of top management in many multinationals is to get their employees and their families out of Egypt safely. Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation.

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

Harvard Business Review

For years, AWS has invested in driving developer and company adoption of its platform by driving down prices and introducing low cost features to make developer’s lives easier. That ecosystem investment reinforces the value proposition and drives more developer adoption. Consider a business like Amazon Web Services.

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Lafleyā€™s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

Declaring he’d cull up to 100 brands ā€” many of which he’d acquired and developed ā€” P&G CEO A.G. “Importantly, this will be a much simpler, much less complex company of leading brands that’s easier to manage and operate.” Should management refine and dig deeper into existing 80/20 KPIs?

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

Next time you're deciding about a big investment, NPV can help you make a more informed decision. Your goal is to develop a deep understanding of the precise “link between profit and loss” and how that affects your organization’s performance over time, says Knight. Related Video. The Refresher: Net Present Value.

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Reflecting on David Garvinā€™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. One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.)