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When It Pays to Think Like a Finance Manager

Harvard Business Review

Everyone always wants new equipment — new computers or other hot technologies. Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? From our point of view, in other words, most people use ROI analysis as a way to justify something they really want to do anyway.

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The Worst Failure of All Is Wasting a Failure

Harvard Business Review

The CEO and CFO responded with, "A failure to hit ROI and NPV targets." To state that it didn't hit ROI, or whatever the metric is, doesn't answer the question. Clearly the company was painfully aware of these two failed projects. The problem came with the follow-up question, "Why did example A fail?".

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How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

In our experience, marketing can increase marketing ROI (MROI) by 15 – 20 percent. These estimates can then help determine the Net Present Value (NPV) of the long term effect of marketing in terms of future sales. Information & technology Marketing' That kind of value can turn plenty of heads in the C-suite. customer surveys).