innovation accounting

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  • Innovation Accounting The anti-Procrustean approach to key performance indicators
  • The Procrustean KPI system Mass corporate standardization effect: everything is (has to be) one-size-ts-all, KPIs too.
  • The Procrustean KPI system
  • The Procrustean KPI system Best way to kill innovation: measure progress with nancial KPIs
  • The Procrustean KPI system
  • The Procrustean KPI system For relevant progress tracking, KPIs need to be adapted.
  • The Procrustean KPI system
  • Classication of Innovation Accounting KPIs based on the purpose they serve
  • Classication of Innovation Accounting KPIs based on the purpose they serve Reporting: measure the progress from ideation through to product-market t.
  • Classication of Innovation Accounting KPIs based on the purpose they serve Reporting: measure the progress from ideation through to product-market t. Governance: helping companys board with investment decisions
  • Classication of Innovation Accounting KPIs based on the purpose they serve Reporting: measure the progress from ideation through to product-market t. Global: examine the overall performance of the innovation department Governance: helping companys board with investment decisions
  • Innovation Accounting: Reporting KPIs Text
  • Innovation Accounting: Reporting KPIs Text Cost per learning (cost per failure): businesses fail because they ran out of $$$ before product market t was found
  • Innovation Accounting: Reporting KPIs Text Cost per learning (cost per failure): businesses fail because they ran out of $$$ before product market t was found better fail 100 times with $1,000/failure than,1 time with $100,000/failure fail fast, fail cheap, fail often...but do learn
  • Innovation Accounting: Reporting KPIs Text Cost per learning (cost per failure): businesses fail because they ran out of $$$ before product market t was found
  • Innovation Accounting: Reporting KPIs Text
  • Innovation Accounting: Reporting KPIs Text Experimentation velocity: the speed at which validation happens is important for the venture to have a competitive edge in the market place.
  • Innovation Accounting: Reporting KPIs Text Experimentation velocity: the speed at which validation happens is important for the venture to have a competitive edge in the market place. I have not failed. I've just found 10,000 ways that won't work. - Thomas.A. Edison
  • Innovation Accounting: Governance KPIs Source: Rita McGrath
  • Innovation Accounting: Governance KPIs Knowledge-to-assumption ratio: number of validated vs. non-validated assumptions in the business model. Source: Rita McGrath
  • Innovation Accounting: Governance KPIs Knowledge-to-assumption ratio: number of validated vs. non-validated assumptions in the business model. The closer to 1 it is, the less risky the business model is. Source: Rita McGrath
  • Innovation Accounting: Governance KPIs Knowledge-to-assumption ratio: number of validated vs. non-validated assumptions in the business model. Source: Rita McGrath
  • Innovation Accounting: Governance KPIs Source: Rita McGrath
  • Innovation Accounting: Governance KPIs Source: Rita McGrath Barebones NPV: answers the question of whether or not to continue investing in a particular venture.
  • Innovation Accounting: Governance KPIs Source: Rita McGrath Barebones NPV: answers the question of whether or not to continue investing in a particular venture. Knowing when to stop doing what you are doing is sometimes more important to knowing what to do.
  • Innovation Accounting: Global KPIs
  • Innovation Accounting: Global KPIs Innovation contribution: how much money are being made today by the ventures launched X years ago (in %).
  • Innovation Accounting: Global KPIs
  • Innovation Accounting: Global KPIs Cohort performance: the innovation department should be improving with regards to its overall contribution to company revenues with each incubated cohort.
  • Innovation Accounting: Global KPIs
  • Innovation Accounting: Global KPIs Innovation conversion: % of old customers that are converting to new offerings replacing the old ones (or being complementary to existing offeringscustomers which are using more than one product/service from the corporations portfolio)
  • Conclusions
  • Conclusions KPIs should be adapted to the maturity stage of the business model. Procrustean was killed by Theseus.
  • Conclusions
  • Conclusions For corporate startups to prosper an innovation accounting system needs to be put in place.
  • Conclusions
  • Conclusions Read more on innovation accounting and corporate startups.
  • www.thecorporatestartupbook.com @toma_dan www.danto.ma @tendayiviki www.tendayiviki.com Lets talk!

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