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

Harvard Business

If our oceans suddenly turned to chocolate, the incremental value of that volume would plummet — we’d truly have more chocolate than we really needed. In the world of technology: the more of something you make, the more valuable it can become. This has led to high levels of AWS specific investment from innovators like CloudHealth Technologies, Qubole, Mapbox, and the like. The Refresher: Net Present Value. Nicholas Blechman for HBR.

Hospital Budget Systems Are Holding Back Innovation

Harvard Business

We have identified how hospitals’ budgeting systems have erected three distinct barriers to the adoption of technology. These barriers, however, can be overcome by changing how hospitals acquire new technology and by providing incentives to units to use digital innovations to provide more effective and efficient care. How technology is changing the design and delivery of care. Financial management Technology Innovation Healthcare Digital Article

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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business

” Laying out their data, they find that long-term oriented companies create more financial value and more jobs. The Refresher: Net Present Value. Next time you're deciding about a big investment, NPV can help you make a more informed decision. The fundamental difference in value to the company notwithstanding, those equity dollars invested are given exactly the same rights.

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How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

That’s because marketing has a big opportunity to drive above-market growth and demonstrate its value to the C-suite and the boardroom. That kind of value can turn plenty of heads in the C-suite. Without ongoing investment in the brand, the value of this base erodes over time and creates a stiff head wind for future sales. These estimates can then help determine the Net Present Value (NPV) of the long term effect of marketing in terms of future sales.

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When It Pays to Think Like a Finance Manager

Harvard Business Review

Everyone always wants new equipment — new computers or other hot technologies. Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? If the numbers show a negative NPV, meaning that the proposed investment isn’t justified, they change the assumptions until the NPV turns up positive. The two founding partners were both engineers who loved technology.

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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. If you’re evaluating the rights to new shale oil reserves in a place like North Dakota, today you’d rely instead on a different economic model: option value.

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