article thumbnail

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

The Idolbuster

“When you build [mathematical] models, you try to make an intelligent metric,” which was based on sizing the market, and estimating the market share based on what the product could do relative to the competition. Sabina explained that she felt “pressured to show there is value in doing the project, a positive NPV.

NPV 36
article thumbnail

How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

If you were looking for a theme song that captures marketing today, you could do worse than pick Queen’s anthem “Under Pressure.” Marketing is under pressure to show results, cut costs, and drive growth. Marketers should welcome it. In our experience, marketing can increase marketing ROI (MROI) by 15 – 20 percent.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

For decades multinational corporations have poured hundreds of billions of dollars of foreign investments into emerging markets , sometimes preferring the investment climate of "stable" authoritarian regimes over "messy" democracies. Certainly the money at stake is substantial.

NPV 12
article thumbnail

Old Buildings Are U.S. Cities’ Biggest Sustainability Challenge

Harvard Business Review

This is especially true in the commercial buildings market, specifically large commercial buildings, where well over 75 percent of existing buildings will still be in use in fifteen years’ time. Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them.

NPV 8
article thumbnail

Why Is an App Worth as Much as a Small Oil Field?

Harvard Business Review

While on the surface, the dirty business of fossil fuels is nothing like Silicon Valley, many in the oil business have moved beyond the standard net present value (NPV) model for assessing the merit of investments. Consider the rapid progress Facebook has made on mobile, not only domestically, but in emerging markets.

NPV 8
article thumbnail

Is Your Business Biased Against Innovation?

Strategy Driven

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. If it is positive, it’s thumbs up, if it’s negative, it’s thumbs down. This matters because it can cause you to be blindsided.