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Innovation is a Lifestyle, Not a Bunch of Metrics

Innovation Excellence

Far too many supposed innovation experts believe that measuring activities is critical to success. Persistent growth, profit, ROI and NPV are the obvious measures, Maybe not so much. At least for the big stuff.

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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

The odds of a successful acquisition are long — something research has proven time and again — yet executives show no signs of losing interest in M&A. 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
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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." Here are a few ideas for enhancing your success tomorrow by learning from yesterday's failures: Conduct objective post-mortems. Why, and how does this help us be more successful in future efforts? If an innovation initiative failed, ask why.

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How Marketers Can Avoid Big Data Blind Spots

Harvard Business Review

These estimates can then help determine the Net Present Value (NPV) of the long term effect of marketing in terms of future sales. Given the overwhelming success of this effort, the brand considered shifting significant spend from TV and print advertising to digital and social media channels. customer surveys).

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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?

NPV 8
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Old Buildings Are U.S. Cities’ Biggest Sustainability Challenge

Harvard Business Review

Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. This is especially true in the commercial buildings market, specifically large commercial buildings, where well over 75 percent of existing buildings will still be in use in fifteen years’ time.

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Case Study: Should a Hotelier Invest in a New Kind of Online Travel Agency?

Harvard Business Review

But we’ve had great success so far. ” Negative NPV. “You can see that if you go three years out, the NPV is still negative on our investment. “You can see that if you go three years out, the NPV is still negative on our investment. ” “It’s a crowded market, for sure.