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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

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.

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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.

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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. What if I suggested that the best place to look for answers could be the shale oil fields of North Dakota?

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When It Pays to Think Like a Finance Manager

Harvard Business Review

They’re essentially asking the company to take the cash it has generated through its business operations and spend it on something with an uncertain future return. Everyone always wants new equipment — new computers or other hot technologies. The two founding partners were both engineers who loved technology.

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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

To prioritize projects, for instance, the ALL team could have forecast future cash flows for every potential investment and ranked all proposals on the basis of their net present value. Within three years, ALL's Brazilian rail operations had increased revenues by 50% and tripled EBITDA.

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How to Choose the Ideas Your Company Should Invest In

Harvard Business Review

Can we get to the market without any technological miracles? After exploration, there are lots of ways to plan, but at the very least a good plan details the target customer, crucial stakeholders, the essence of the idea, key economics, the commercialization path, proposed operations, the team, financial requirements, and the action plan.

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