Remove .Net Remove Agile Remove Cost Remove IRR
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ESADE Business School Commencement Speech

Steve Blank

Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. Unfortunately as we’ve learned from recent experience, using Return on Net Assets and IRR as proxies for efficiency and execution won’t save a company when their industry encounters creative disruption.

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Why Companies are Not Startups

Steve Blank

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. KPI’s and processes are the root cause of corporations’ inability to be agile and responsive innovators.

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How to Impress Angel Investors and Make It into “Startup Heaven”

Up and Running

An angel investor is a high net worth individual who invests their own money into startup companies in the hopes of gaining a return on their money. They should also show that they have measured the cost of reaching that market by comparing a customer’s lifetime value (LTV) to the customer’s acquisition cost (CAC).”.

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Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. Their size lets them adopt flatter and more agile organizational structures while providing incentives that reward risk-taking and collaboration.