3. CVA® over Time
The value of an organization depends on how well an organization meets customer needs at levels superior to those of their competitors over time, while controlling costs. For example, Polaroid went bankrupt because a new technology—digital imaging—was superior to instant film (Exhibit 3.1). Even though Polaroid produced digital cameras, their brand was inextricably associated with what was eventually perceived by many customers to be an inferior technology.1
Exhibit 3.1 Polaroid financial performance
Source: Osiris, 2004
Financial performance over time is related to CVA® over time. One can track the value of a business ...