Innstrat

Scientifically Managing the Art of Creativity; An End-to-End Innovation Framework

Despite the plethora of advice on how to improve innovation outcomes, innovation leaders in many organisations continue to ask the question; why aren’t we getting more bang for our buck on innovation? Some of the reasons behind this struggle include (but is not limited to); lack of sufficient goods ideas, selecting and developing the wrong ideas, perpetually ending up with incremental ideas only, disjointed innovation efforts across multiple business units, inability to get good ideas over the line. These factors are in the most often related to an inability to manage the creativity of innovation or the tension between creativity and value capture.

Real Options Valuation – Uncovering Innovation Value that lies Beyond Net Present Value

Corporate leaders frequently have to make decisions on whether to sanction investment in innovations or reject the investment request. Generally, the most common and widely used metric for capital budgeting and decision making is the Net Present Value, aided by Discounted Cash Flow. This metric is however only fairly accurate when dealing with innovations with a high degree of certainty, which is typically aligned with incremental and efficiency innovations.