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What Markets Do and Don’t Get About Innovation

Harvard Business Review

Investors’ core valuation methods ( comparables and discounted cash-flow analysis) both extrapolate past performance into the future — but they fail to predict when the future will be radically different from the past. As a result, outlooks are more likely to be positive or mixed. Disruptive innovation Finance'

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course. One CFO commented that they now avoid inviting company accountants to their strategy meetings, while another said that CPA certification is considered a disqualification for a top finance position.

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

Despite a one-year payback period and a highly positive net present value (NPV) from this investment, the department will often reject the attractive opportunity. Instead, the finance office can allow the department to keep some of the savings it created, in excess of the original acquisition cost, in future year budgets.