Harvard Business Review

MARCH 29, 2018

health care system. The audience for such innovation wants to be receptive: A recent American Hospital Association (AHA) survey found that 75% of senior hospital executives endorsed the importance of digital innovation. Yet, despite their stated enthusiasm, hospitals have been notoriously slow to adopt digital innovations.

Budgeting 8

Budgeting System Innovation Payback Period 8

Harvard Business Review

DECEMBER 2, 2010

Even Dell, famous for eschewing acquisitions in favor of organic growth, has thrown in the towel with its $5 billion acquisition of Perot Systems. The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

APRIL 19, 2011

a Boston-based innovation management collaborative. We often ask executives to tell us about their biggest innovation failures. The CEO and CFO responded with, "A failure to hit ROI and NPV targets." The head of R&D remembered it as a failure to properly market the innovation. If an innovation initiative failed, ask why.

NPV 15

NPV ROI CFO Consensus 15

Harvard Business Review

JANUARY 21, 2016

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. Innovation in Cities. This approach has been made possible by the advent of low-cost sensing technology and the ability to acquire data from building systems and energy-consuming equipment.

NPV 8

NPV Energy Efficiency Technology 8

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. Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital.

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

MAY 18, 2017

Kaplan’s balanced scorecard or Clayton Christensen’s disruptive innovation. One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) That quality made him (arguably) the quintessential HBR author. Sound familiar?

Management 9

Management Balanced Scorecard NPV Article 9