Harvard Business Review

JUNE 8, 2018

The market caps of just four companies, Apple, Alphabet, Amazon, and Microsoft, now exceed $3 trillion. Their combined assets of $944 billion are an order of magnitude lower than the combined assets of $7,700 billion of the largest 3,177 companies in 1986, when the aggregate market capitalization reached $3 trillion for the first time.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

SEPTEMBER 13, 2017

Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years. For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1% of revenues).

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

NOVEMBER 7, 2011

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.

CEO 12

CEO Net Present Value Banking Metrics 12

Harvard Business Review

NOVEMBER 19, 2015

This can be quantified by analyzing the extent to which the share prices of S&P 500 firms are driven by a firm’s present value of future growth options (PVGO) rather than cash flow from current operations. Eventually the company is likely to be out of touch with changing market requirements.

Company 8

Company Succession Maturity Long-term 8

Harvard Business Review

SEPTEMBER 27, 2012

Once they understood the rules and their underlying rationale, ALL's employees generated a series of innovative proposals based on what they had to work with. To prioritize projects, for instance, the ALL team could have forecast future cash flows for every potential investment and ranked all proposals on the basis of their net present value.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

Harvard Business Review

JANUARY 11, 2012

In The Innovator's Guide to Growth we suggested that companies should create one-page "Idea Resumes" that capture the essence of an idea on a single PowerPoint slide. If you don't have an innovation strategy , go and create one.). Can we get to the market without any technological miracles? That's a good thing.

Company 15

Company Net Present Value How To Proposal 15

Strategy Driven

SEPTEMBER 9, 2011

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. To read Rita’s complete biography, click here.

Innovation 50

Innovation NPV Business Model Constraint 50