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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. And life was difficult for the product manager, with lots of questions from his management team. “I There was equal pressure from myself and others.”. I felt like a failure because [the forecast] was so off.”.

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Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

Next time you're deciding about a big investment, NPV can help you make a more informed decision. Today, AWS is a much more valuable business for the company’s long-termism. So is Facebook. So is Google. The list goes on. Related Video. The Refresher: Net Present Value.

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Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

The demands of 80/20 criteria shifts the innovation emphasis away from more traditional financial metrics around DCF , IRR , and NPV and toward better understanding of how novelty preserves, protects, and extends the 80/20 franchise. Does this mean that the people and processes outside that Pareto core will be minimized and marginalized?

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

Harvard Business Review

” At Marriott, Lotta had been part of the team that voted to make an investment in a young start-up with a similar value proposition — to undercut OTAs and help hospitality groups increase direct bookings. ” Negative NPV. “You can see that if you go three years out, the NPV is still negative on our investment.

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Reflecting on David Garvin’s Imprint on Management

Harvard Business Review

One of the many articles circling back to this topic of late revisited the still-common use of NPV hurdles in investment decisions.) The bottom line was that teams with good managers perform far better than teams with average managers. Sound familiar? Case closed (until engineers develop an algorithm that does the job better).

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Is Your Business Biased Against Innovation?

Strategy Driven

Net present value [NPV] is a case in point. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. One problem is that NPV calculations tend to compare today with some future state. To read Rita’s complete biography, click here.