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When deciding which innovation project or solution to pursue, managers are faced with two problems: (1) A valuation problem (what is the expected return based on the most efficient allocation of resources?), and (2) a portfolio problem (which portfolio of innovation projects meets strategic objectives based on the spread of risk, the business areas impacted and overall fit with strategic direction?)   We can help you determine the market size, value and expected return on investment of your innovation pipeline of opportunities as well as select the most promising solutions or initiatives using a mix of scorecards and real options valuation techniques.

   

The Customer Innovation Scorecard

The Customer Innovation Scorecard is used to undertake an internal assessment of an innovation portfolio. It identifies which initiatives have the best chance of success, which projects, products or other solutions should be aborted and hence, where companies should focus resources on likely winners. Using the scorecard, clients are able to speed up their time to market. The net result? More winning innovations and less development expense ... 

The Customer Innovation Scorecard uses multiple criteria such as strategic alignment, competitive replicability, cost reduction potential, market attractiveness, fit to existing business and time to break even. Each is defined according to the particular innovation strategy being pursued, whether one of core market growth, adjacent market growth, market disruption or the creation of new markets.

We also undertake in-depth financial valuation using the Real Options method.  For example, we have experience of valuing customer experience investments using real options.  Contact us today for more information.

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