article thumbnail

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

Harvard Business Review

How can you continuously defer short term profitability to grow your network effect? As long as there are strong increasing returns to create , it’s possible that the net present value of my profit harvesting is indefinitely larger if deferred to the future. The Refresher: Net Present Value.

article thumbnail

How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

Overcoming “short-term-ism”. One major blind spot for marketers to be aware of is “short-term-ism” that most analytics engender. The reality is that the majority of marketing activities have both a short- and long-term impact on sales. One consumer food brand almost fell into this short-term trap.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

But we recognize that, in many businesses, resources are often allocated according to short-term, bottom-line pressures. We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. of revenues) in expected net present value over 10 years.

article thumbnail

How CMOs Can Get CFOs on Their Side

Harvard Business Review

To date, however, the reality of marketing analytics has fallen short of the promise. Just 36 percent of CMOs, for example, have quantitatively proven the short-term impact of marketing spend, according to the 2013 CMO Survey (and for demonstrating long-term impact, that figure drops to 32 percent).

CFO 8
article thumbnail

Forget About That Cash Bonus

Harvard Business Review

The researchers found that gifts were far more motivating to short-term employees than unexpected cash bonuses, effectively paying for themselves by improving productivity. The findings provide some guidance on the types of gifts that are likely to engender the greatest motivation and loyalty.