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.
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. According to Knight, it’s commonly used by financial analysts in conjunction with net present value, or NPV. ” The downside is that IRR is much more conceptual than NPV.
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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.
Harvard Business Review
MARCH 23, 2015
If you want approval for a new project — purchasing new equipment or computer systems, applying for a patent, building a new store — chances are you need your company’s finance department on board. Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer?
Harvard Business Review
APRIL 19, 2011
The CEO and CFO responded with, "A failure to hit ROI and NPV targets." Create a knowledge management system. Clearly the company was painfully aware of these two failed projects. The problem came with the follow-up question, "Why did example A fail?". The head of R&D remembered it as a failure to properly market the innovation.
Harvard Business Review
JANUARY 21, 2016
Today large commercial buildings address only two percent per year of the NPV-positive investments in efficiency that are available to them. This approach has been made possible by the advent of low-cost sensing technology and the ability to acquire data from building systems and energy-consuming equipment.
Harvard Business Review
OCTOBER 20, 2014
They institutionalized the use of data collection systems in their manufacturing facilities to understand how products and machines would “behave” and could be optimized. Combining these creates a P&L and a projection, which through a discounted cash flow analysis yields an NPV, which can be used to assess valuation.
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