Effective executive leadership in innovation

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Reference no: EM131447492

1. In order to have effective executive leadership in innovation, senior management MUST be involved in day-to-day project management.

2. Profitability is defined by ECV, ECV PI, and ROI, in that with a low ECV, the return on investment is high, and managers should elect to spend money on that specific project.

3. In order to calculate the NPV PI, the inputs required are: the present value of future earnings; development cost; and capital cost. The PI is then the ratio of NPV to the constrained resource.

Reference no: EM131447492

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