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What Happens When Features Are Dropped To Make a Launch Date?

The Idolbuster

One common solution is to drop features from the product. Sabina” was a product manager working in lifescience industry who was part of a project that had to make that very choice. “Sabina” was a product manager working in lifescience industry who was part of a project that had to make that very choice.

NPV 36
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A Refresher on Internal Rate of Return

Harvard Business Review

You’ve got a great idea for a new product that will increase revenue or a new system that will cut the company’s costs. According to Knight, it’s commonly used by financial analysts in conjunction with net present value, or NPV. ” The downside is that IRR is much more conceptual than NPV.

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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

Horizon 3 (H3) represents opportunities for future growth that may take the form of new products, services, capabilities, and perhaps extensions into non-adjacencies that show great promise but are highly uncertain. Since the Three Horizons represent different levels of uncertainty, they need to be managed and valued differently.

NPV 14
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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

With political upheaval roiling the streets of Cairo, the first concern of top management in many multinationals is to get their employees and their families out of Egypt safely. Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation.

NPV 12
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Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

When your product can become more valuable to your customers over time, the way you prioritize building features and harvesting profits within a business needs to change. Next time you're deciding about a big investment, NPV can help you make a more informed decision. So is Facebook. So is Google. The list goes on. Related Video.

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Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

“Importantly, this will be a much simpler, much less complex company of leading brands that’s easier to manage and operate.” In retail, Lafley observed , the 80/20 rule usually applied: “Twenty per cent of the brands and products account for 80 per cent sales.”

Brand 8
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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

A second, more radical solution is to create budgets and authority for a service line or integrated practice unit (IPU) that manages a patient’s entire treatment for a high-volume medical condition. The IPU is an essential component of the value-based care model advocated by Harvard Business School’s Michael Porter.