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Innovation is a Lifestyle, Not a Bunch of Metrics

Innovation Excellence

Persistent growth, profit, ROI and NPV are the obvious measures, At least for the big stuff. Innovation activities simply for the sake of doing something without context and insight from the measure may be in fact very misleading.

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A Refresher on Internal Rate of Return

Harvard Business Review

According to Knight, it’s commonly used by financial analysts in conjunction with net present value, or NPV. With NPV you assume a particular discount rate for your company, then calculate the present value of the investment ( more here on NPV ). ” The downside is that IRR is much more conceptual than NPV.

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What Happens When Features Are Dropped To Make a Launch Date?

The Idolbuster

Sabina explained that she felt “pressured to show there is value in doing the project, a positive NPV. “When you build [mathematical] models, you try to make an intelligent metric,” which was based on sizing the market, and estimating the market share based on what the product could do relative to the competition.

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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

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. The two together, NPV + OV, provide an inclusive but not inflated valuation. We call this the Opportunity Value (OV) of an asset.

NPV 15
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Will You Be Writing Off Your Investment in Egypt?

Harvard Business Review

Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation. The overall value of a foreign investment is equal to the NPV of the expected stream of profits for the life of the investment.

NPV 14
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The Refresher: Net Present Value

Harvard Business Review

Next time you’re deciding about a big investment, NPV can help you make a more informed decision.

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When It Pays to Think Like a Finance Manager

Harvard Business Review

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. Of course not.