Remove Net Present Value Remove Operations Remove Strategy Remove Technology
article thumbnail

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

In our recent HBR article , we argued that financial statements fail to capture the value created by modern digital companies. Since then, we interviewed several chief financial officers (CFOs) of leading technology companies and senior analysts of investment banks who follow technology companies.

Report 8
article thumbnail

Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Successful companies shape their high-level strategies by relying not on complicated frameworks but on simple rules of thumb. It illustrates how simple rules can help companies shape strategy in an uncertain environment. Strategies often falter in execution because of insufficient coordination across the organization.

Insiders

Sign Up for our Newsletter

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

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. Mergers & Acquisitions Strategy Tech industry' In the oil business, this might mean something like fracking.

NPV 8
article thumbnail

How to Choose the Ideas Your Company Should Invest In

Harvard Business Review

Consider some combination of the following criteria: Does what we hope to do fit our strategy? (If If you don't have an innovation strategy , go and create one.). Can we get to the market without any technological miracles? Note what isn't part of the decision: an idea's net present value or return on investment.

Company 14