Analyzing Your Innovation Portfolio
An excerpt from Innovation Accounting
Taking decisions with respect to what the next investment in innovation should look like, can quickly become a turf war for resources and prestige in the absence of an unbiased way to get transparency over the existing commitments.
However, managing a portfolio of innovations is easier said than done. The fact that innovation comes in all shapes and sizes, and a company is most likely investing simultaneously across the entire spectrum, it’s not making things any easier either. Looking at the existing investment portfolio through different lenses rooted in various questions can take a lot of the guessing and personal biases out of the decision-making process.
For example, some leaders might need to know how much investment is going towards each strategic option listed in the company’s strategy in order to make sure that what is stated in the strategy as being a priority, actually gets a proportional investment. For example, what percentage of investment is going towards ‘decarbonization’ and how much is going toward ‘quantum computing’ given that our company is aiming for ‘net 0’ by 2030.
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