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

Harvard Business Review

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. That ecosystem investment reinforces the value proposition and drives more developer adoption.

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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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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.

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What Xerox PARC Learned About Executing on Open Innovation

Harvard Business Review

At that time it was hard for PARC to understand how much we needed to invest in a new technology before approaching partners to work together in commercialization. Here are some key strategies I've observed from PARC's experiences. Strategy #1: Go beyond just the ideas. Strategy #2: Don't think only about what you have to offer.

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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. Mergers & Acquisitions Strategy Tech industry' Where would you drill if you had money to spare?

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

Harvard Business Review

An activist hedge fund, for example, can exert massive pressure to change the strategy and/or investment approach of the company based on its ownership of a sufficient share of the company’s equity. The Refresher: Net Present Value. Related Video.

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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.

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