The Idolbuster

JANUARY 17, 2013

One common solution is to drop features from the product. Sabina” was a product manager working in lifescience industry who was part of a project that had to make that very choice. Sabina explained that she felt “pressured to show there is value in doing the project, a positive NPV. A forecast is built on assumptions.

NPV 36

NPV Sample Project Metrics 36

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. Horizon 3 (H3) represents opportunities for future growth that may take the form of new products, services, capabilities, and perhaps extensions into non-adjacencies that show great promise but are highly uncertain.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

FEBRUARY 7, 2011

Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation. The overall value of a foreign investment is equal to the NPV of the expected stream of profits for the life of the investment. If the owner of that subsidiary discounts profits in Egypt by 12.5

NPV 13

NPV Short-term Discount Politics 13

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. That ecosystem investment reinforces the value proposition and drives more developer adoption. Consider a business like Amazon Web Services. So is Facebook.

Collison 10

Collison Net Present Value Company Short-term 10

Harvard Business Review

MARCH 9, 2011

Perhaps most important, we should be figuring out ways to remain economically productive — whether through part-time or project-based work or even a new entrepreneurial venture. Even modest continued earnings dramatically change the NPV calculation. Financial motivations are part of the reason.

Career 12

Career Planning NPV Fashion 12

Harvard Business Review

AUGUST 4, 2014

Declaring he’d cull up to 100 brands — many of which he’d acquired and developed — P&G CEO A.G. In retail, Lafley observed , the 80/20 rule usually applied: “Twenty per cent of the brands and products account for 80 per cent sales.” Identifying the 80/20 products and brands is the easy part.

Brand 8

Brand DCF IRR NPV 8

Harvard Business Review

JANUARY 21, 2016

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. This is especially true in the commercial buildings market, specifically large commercial buildings, where well over 75 percent of existing buildings will still be in use in fifteen years’ time.

NPV 8

NPV Energy Efficiency Technology 8