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SHORT-TERM PROFITABILITY

Analyzing Near-Horizon Opportunities

Innovation aims to create exceptional value. Deciding which of your opportunities is truly exceptional is thus a critical element of the innovation process. When opportunities are newly identified and only loosely articulated, you will select those with the most promise based on the subjective criteria outlined in chapter 4. But as you enter the later rounds of an innovation tournament, you should augment and enhance your subjective judgments with quantitative analysis.

This chapter describes tools for analyzing opportunities quantitatively in terms of financial value. Consider an ...

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