Alexander Börsch, Nicolai Andersen
There are two main factors that make meaningful investment in innovation harder to manage than other corporate activities. First, innovation is fraught with uncertainties. It deals with the future, requiring assumptions about future market needs, market trends, dominating technologies, and many other factors. The outcomes of innovation projects are, therefore, highly uncertain. …
Second, there is a tension between the short term and the long term. … [ Read more ]
Content: Quotation | Authors: Alexander Börsch, Nicolai Andersen | Source: “Deloitte Review” | Subject: Innovation
Alexander Börsch, Nicolai Andersen
Innovation projects have varying levels of risk and potential returns. They can be radical (with high risk and return potential) or incremental (with low risk and return potential) as well as several degrees in between. A conscious effort to classify innovation projects according to their risk/return profile and manage the resulting portfolio according to pre-defined goals shifts the focus away from individual projects in favor … [ Read more ]
Content: Quotation | Authors: Alexander Börsch, Nicolai Andersen | Source: “Deloitte Review” | Subject: Innovation