Business value In management, business value is an informal term that includes all forms of value that determine the health and well-being of the firm in the long run. Business value expands concept of value of the firm beyond economic value (also known as economic profit, economic value added, and shareholder value) to include other forms of value such as employee value, customer value, supplier value, channel partner value, alliance partner value, managerial value, and societal value. Many of these forms of value are not directly measured in monetary terms. Philosophy[edit] The concept of business value aligned with the theory that a firm is best viewed as a network of relationships both internal and external. If the firm is viewed as a network of value creating entities, then the question becomes how does each node in the network contribute to overall firm performance and how does it behave and respond to its own interests. History[edit] Michael Porter popularized the concept of the value chain.
The Evolution of Display: Change Is Here, For Good The first banner ad to run on the web – AT&T’s “You Will” campaign. It asked “Have you ever clicked your mouse right here?” The answer turned out to be “You Will…for a while. Then, not so much.” Earlier this year I wrote a long post about the “death of display,” since then, I’ve consistently been asked about it, and in particular, to expand on my thoughts around display advertising economics, and the prospects for what might broadly be termed “independent creators of content,” or what I call “the independent web.” Now, I love this topic, as many of you know. Here’s that previous post, boiled down to bulleted form: * The model of “boxes and rectangles” – the display banner – is failing to fully support traditional “content” sites beyond a handful of exceptions. * A new generation of “native” ad units are on the rise, which live primarily on large social sites that curate and aggregate content. Well, this is it (at least, it’s part one). Given all this, what is a publishing business to do?
Shareholder value Shareholder value is a business term, sometimes phrased as shareholder value maximization or as the shareholder value model, which implies that the ultimate measure of a company's success is the extent to which it enriches shareholders. It became popular during the 1980s, and is particularly associated with former CEO of General Electric, Jack Welch. The term used in several ways: To refer to the market capitalization of a company (rarely used)To refer to the concept that the primary goal for a company is to increase the wealth of its shareholders (owners) by paying dividends and/or causing the stock price to increaseTo refer to the more specific concept that planned actions by management and the returns to shareholders should outperform certain bench-marks such as the cost of capital concept. Definition[edit] For a publicly traded company, Shareholder Value (SV) is the part of its capitalization that is equity as opposed to long-term debt. History[edit] Maximizing shareholder value[edit]
Online Training: 5 Takeaways from a Social Learning Experiment This summer, GovLoop hosted its first ever multi-week social online training, called “Your Path to Leadership: Mastering Core Competencies to Get Ahead in Government.” The course examined 10 traits of a great leader, each of which corresponded to one of the Executive Core Qualifications (ECQs) of the Senior Executive Service (SES). The course consisted of the following elements: Course workbook with required readings Weekly webinar led by two SMEs (and audience Q&A)Weekly online discussion with all participants about a challenge posed by the SMEsWeekly reflection journalsLive “office hours” We’ve since made all of the course materials available to the GovLoop community (you can access it here) so you can walk through the course at your own pace, but we also wanted to share some thoughts and lessons we learned in creating the course. Of the People, by the People, for the People In seeking to make a truly “social” course, we thought setting the tone meant everything. Make it Tangible
Ratio Analysis Financial Ratio Analysis is the calculation and comparison of main indicators - ratios which are derived from the information given in a company's financial statements(which must be from similar points in time and preferably audited financial statements and developed in the same manner). It involves methods of calculating and interpreting financial ratios in order to assess a firm's performance and status. This Analysis is primarily designed to meet informational needs of investors, creditors and management. Horizontal Analysis - the analysis is based on a year-to-year comparison of a firm's ratios, Vertical Analysis - the comparison of Balance Sheet accounts either using ratios or not, to get useful information and draw useful conclusions, and Cross-sectional Analysis - ratios are used and compared between several firms of the same industry in order to draw conclusions about an entity's profitability and financial performance. Profitability Activity or Management Efficiency ratios
Danielle Morrill Was Here Blog Archive » How to Calculate the Enterprise Value of Private Calculating the Enterprise Value of public companies is a pretty simple math exercise. As I described in an earlier post, Cost of Financial Illiteracy: How to Calculate Enterprise Value, all you need is access to some information about the company’s stock and a recent set of their financial statements. Once you have those it’s as simple as Market Cap – Cash & Marketable Securities + Debt = Enterprise Value. Of course there are a few other nuances but for 95% of the companies you could look at this formula will work just fine. The challenge a lot of people have, however, is how to calculate the enterprise value of private / non-public companies. Unless you have access to the target company’s financial statements, the simple, honest answer is that in most cases you cannot determine a private company’s enterprise value with any degree of certainty. We will use an example to make this process real. 1. 2. 3. 4. Summary
Creative Thinking and Idea Magnets - 11 Vital Creative Characteristics Do you know people who seem to have an incredible ability to surround themselves with creative idea people? Not only are these individuals creative idea people themselves, they cultivate creativity in those around them with amazing ease. I call them “idea magnets.” Recently recalling the “idea magnets” I have known and worked with throughout my career, you cannot help but marvel at how they bring out incredible creative thinking and, more importantly, incredible creative implementation, in others. 11 Vital Creative Characteristics of Idea Magnets How do you spot an idea magnet? Absorbing diverse, creativity-instigating reference points all the time. Asking rich questions of others. Listening before they talk. Generalizing opportunities and challenges to find analogous situations from which to expand creative possibilities. Connecting people, resources , and ideas that are both obvious and not at all obvious creatively. Easily moving between foreground and background in group settings.
Bridging the gap between social media hype and business value | This is a cross post – with the primary post being my first on the CRM Outsiders blog. Since the location is different, I am altering the introduction a bit (you know content is king and context is queen and all that). I do lots of different things for SugarCRM, among them is the beat up the regular author of the CRM Outsiders blog, asking him to write about this or that…So, Martin said in his best mannered Philadelphia tone – “Mitch, if you think it should be said, then start typing” (For those of you who know Martin, that might not be exactly what he said, but we are trying to keep this PG-13). It is interesting that my first post (on CRM Outsiders) is about an upcoming event in Boston. The interesting part is who the keynote speaker is at the event is, and if I read and understood his book, my job is to make this post as interesting as possible, without being too pushy. I am confident that I can do that, and even went so far as to interview him for this post. “Absolutely.
Values of the Creative Class The rise of the Creative Class is reflected in powerful and significant shifts in values, norms and attitudes. Although these changes are still in process and certainly not fully played out, a number of key trends have been discerned by researchers who study values, and I have seen them displayed in my field research across the United States. Not all of these attitudes break with the past: Some represent a melding of traditional values and newer ones. They are also values that have long been associated with more highly educated and creative people. On the basis of my own interviews and focus groups, along with a close reading of statistical surveys conducted by others, I cluster these values along three basic lines. Individuality. Meritocracy. Creative Class people no longer define themselves mainly by the amount of money they make or their position in a financially delineated status order. There are many reasons for the emphasis on merit. But meritocracy also has its dark side.