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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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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Given that even sophisticated investors cannot estimate the value of these companies, CFOs question the ability of a day trader to value a digital company.

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Don’t Let Your Company Get Trapped by Success

Harvard Business Review

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. 3M owes part of its innovative success to the “new product vitality index.”)

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How to Choose the Ideas Your Company Should Invest In

Harvard Business Review

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.). Which possibilities could cause the most damage to the plan? Is the testing plan well thought out?

Company 15
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The Most Common Reasons Customer Experience Programs Fail

Harvard Business Review

Most CX programs are broken in similar ways: They are not designed with change or innovation in mind. Mistake #1: Forgoing change and innovation. This will give you clarity and confidence in what you’ve seen, how the pieces of the puzzle fit together, allow hypotheses to be formed and plans for change to be made.

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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. Others reward easy-to-measure improvements in existing processes over less-easily-quantified innovations. Related Video.

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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 is among the most transactional of all businesses.