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Managing Innovation: From Serendipity to Process
There are many ways to increase company value. In their recent book Competing for the Future, Hamel and Prahallad equate the challenge to that of jacking up the value of a fraction. The numerator of the fraction represents the company's revenues and profits. The denominator reflects its investment and cost base. To increase the value of the fraction – hence company value – management must reduce the denominator and/or grow the numerator.
There are many ways to increase company value. In their recent book Competing for the Future, Hamel and Prahallad equate the challenge to that of jacking up the value of a fraction. The numerator of the fraction represents the company's revenues and profits. The denominator reflects its investment and cost base. To increase the value of the fraction – hence company value – management must reduce the denominator and/or grow the numerator.