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Is Your Business Biased Against Innovation?

Strategy Driven

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. It drives me crazy and is very shortsighted.

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Match Your Innovation Process to the Results You Want

Harvard Business Review

We are often asked whether the best way to structure for innovation is top-down or bottom-up. Bottom-up approaches work well for incremental (keeps you in the game) innovations. Breakthrough (changes the game) innovations, contrary to popular belief, need a top-down approach. They must also be willing to see value in absurdity.

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What Xerox PARC Learned About Executing on Open Innovation

Harvard Business Review

The concept of open innovation has moved from business phrase to business reality over the last ten years. When PARC became a for-profit subsidiary of Xerox to practice open innovation in 2002, Henry Chesbrough had not yet published his book Open Innovation and the concept was not well understood.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

We chose Brazil’s beef industry as the location of our case study , both for the size and complexity of the industry and for its impact on the planet. We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. of revenues).

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

Harvard Business Review

When most of the great companies of the industrial era were founded, even the most brilliant economists believed deeply in the law of diminishing marginal returns. The law of diminishing marginal returns held firm throughout the industrial era. He speculated that some industries actually demonstrated increasing returns.

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Only the CEO Can Make the Big Bets

Harvard Business Review

This blog was written with Jay Terwilliger and Mark Sebell, managing partners at Creative Realities , a Boston-based innovation management collaborative. But did you ever see it as the central metaphor for what truly innovative organizations must do? And using net-present-value estimates for "beginning" ideas is nuts.

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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. The Refresher: Net Present Value. In fact, the multiple of value created by growth versus margins is more than four to one. Related Video.

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