Harvard Business Review

MARCH 29, 2018

health care system. Explanations include their IT departments already have their hands full installing, maintaining, and upgrading electronic health record (EHR) systems. But much of the blame can be attributed to hospitals’ misaligned budgeting and incentive systems. Gillian Blease/Getty Images.

Budgeting 8

Budgeting System Innovation Payback Period 8

Harvard Business Review

MARCH 17, 2016

You’ve got a great idea for a new product that will increase revenue or a new system that will cut the company’s costs. There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. A Refresher on Net Present Value.

Rate of Return 8

Rate of Return IRR NPV Net Present Value 8

Harvard Business Review

SEPTEMBER 13, 2017

We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

DECEMBER 22, 2010

Consider, for example, that the estimated net present value of obligations under the Social Security system is approximately $8 trillion. As the ratio of retired people receiving benefits to working people paying into the system increases, there will be an ever-increasing deficit confronting the government.

GDP 15

GDP Net Present Value Crisis Cost 15

Harvard Business Review

SEPTEMBER 10, 2012

It tends to be short-term, uses familiar (traditional) metrics and development systems like Stage Gate. When forced to present familiar metrics for truly out-of-the-box "beginning" ideas, work teams develop what our friend Jay Paap calls "Imaginary Numbers." So let's talk about incremental. The risks-rewards are relatively low.

Process 15

Process Innovation Stage-Gate Net Present Value 15

Harvard Business Review

AUGUST 15, 2016

Most executives know that the present value of an investment comes from projecting its cash flows and discounting those numbers into today’s dollars. The general rule is projects with positive net present values should get funded, and those with negative ones shouldn’t.

Net Present Value 8

Net Present Value Entrepreneur Christensen Innovation 8

Harvard Business Review

DECEMBER 2, 2010

Even Dell, famous for eschewing acquisitions in favor of organic growth, has thrown in the towel with its $5 billion acquisition of Perot Systems. The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target.

NPV 14

NPV Net Present Value Price Engineering 14