Remove Innovation Remove Long-term Remove Present Value Remove Strategy
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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. Japan, Infosys, and Sagentia in the UK.

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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. Know the risks and the costs.

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

Harvard Business Review

When Patrick Collison, CEO of electronic payments company Stripe, helped kick off our second-year strategy course at the Stanford Graduate School of Business this year, he observed that this has created one of the most profound differences in decision criteria between leaders in industrial-era and internet-era companies. So is Facebook.

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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

So, in real terms, debt financing is essentially free. The ready access to low-cost capital should change the way business leaders think about strategy, and in particular the relative value of improving profit margins versus accelerating growth. The Refresher: Net Present Value. Related Video.

ROE 13
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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Successful companies shape their high-level strategies by relying not on complicated frameworks but on simple rules of thumb. It illustrates how simple rules can help companies shape strategy in an uncertain environment. Rail accounted for only 20% of long-haul shipments in Brazil, compared with 80% in most countries.

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Don’t Let Your Company Get Trapped by Success

Harvard Business Review

This requires applying different approaches to strategy and execution in different parts of their business, as well as constantly re-balancing exploitation (generating cash to support growth) and exploration (finding winning products and models). Adopt the right approach to strategy and execution in each part of the business.