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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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Why Is an App Worth as Much as a Small Oil Field?

Harvard Business Review

While on the surface, the dirty business of fossil fuels is nothing like Silicon Valley, many in the oil business have moved beyond the standard net present value (NPV) model for assessing the merit of investments. But Facebook has also bought itself time to figure out how to extract value from that audience.

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What Xerox PARC Learned About Executing on Open Innovation

Harvard Business Review

At that time it was hard for PARC to understand how much we needed to invest in a new technology before approaching partners to work together in commercialization. PARC has since learned many more lessons — and is now an industry leader — in how to turn open innovation into a repeatable business model. Net Present Value ).

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An Unexpected Lesson from Mandela: Why Context Matters

Harvard Business Review

This would be a breakthrough communication technology, with the power of connecting an excluded and fragmented continent with itself, with the world, and to this newly emerging phenomenon — that none of us quite understood at the time — called the Internet. I told them my story. They agreed that the Mandela proposal was nonsense.