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Why You Should Crowd-Source Your Toughest Investment Decisions

Harvard Business Review

Most companies – including the movie studios in Hollywood – over-rely on basic tools like discounted cash flow and net present value. But if you’re on unfamiliar ground – if you’re in a fast-changing industry, launching a new product, or shifting to a new business model – they can be downright dangerous.

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Can We Quantify the Value of Connected Devices?

Harvard Business Review

In the 1990s, Procter & Gamble’s Product Supply Organization kicked off a major Reliability Engineering program, much like the efficiency initiatives of companies such as Toyota. More impressively, by linking all the machines together, they were able to predict — and subsequently improve — overall process reliability and product quality.

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The Largest Risk (and Opportunity) Investors Are Ignoring

Harvard Business Review

As Nick Robins from the bank HSBC described to the audience, in a scenario of global peak fossil fuel use by 2020 “implies a 44% reduction in discounted cash flow value of fossil fuel companies” — or in simpler terms, a decline in share price of 40 to 60 percent. coal market. coal market.

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What Markets Do and Don’t Get About Innovation

Harvard Business Review

Disruption theory reveals four innovation types that could shape an investment thesis: Low-end disruptive – a dramatically cheaper way of producing worse products for customers who are over-served by existing options. New market disruptive – a cheaper, more accessible, and worse-performing product that turns non-consumers into customers.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource. These criteria assume a limited supply of financial capital and that prudent allocation of financial capital determines a firm’s success.

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

While this might seem like a radical step for hospitals, it is exactly the transition that occurred 100 years ago in the business world in general when companies shifted from a departmental or functional structure to a decentralized, business-unit structure that that was more aligned with and accountable for its products, services, and customers.