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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

We have identified how hospitals’ budgeting systems have erected three distinct barriers to the adoption of technology. These barriers, however, can be overcome by changing how hospitals acquire new technology and by providing incentives to units to use digital innovations to provide more effective and efficient care.

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How Corporate Investors Can Improve Their Odds

Harvard Business Review

The operative question for them is, not “How confident am I that this investment will yield a positive return?” Ideas with positive discounted cash flows get investment. Five produced positive returns, two broke even, and three lost a little, but not a catastrophic, amount of money. Those that don’t, don’t.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Since then, we interviewed several chief financial officers (CFOs) of leading technology companies and senior analysts of investment banks who follow technology companies. As digital technology becomes more pervasive, more and more companies will present this sort of valuation challenge.

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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.