Innovation Workshops for Innovation ManagersInnovation ROI Best Practices
Enable ROI at your organization
Schedule a meeting
Follow a proven process for estimating ROI
Predicting a return from an investment is difficult and requires some estimation and forecasting.
In our workshop your team breaks down your innovation system into parts that can be estimated with enough certainty to forecast future returns.
A focus on the system not projects
Innovation managers love their dashboards, spreadsheets, and metrics. A lot of time and effort is spent creating and updating the organization’s pipeline of projects, each with its own timeline, value, costs, risk, etc. But even with this level of data, there is not an accurate value for ROI. The problem isn’t the project metrics.
The problem is that managers are too deep into the weeds and companies need to zoom out and look at the bigger picture. Investing in innovation is more than just funding projects with R&D budgets. There is an investment in systems and creating ideas for projects. Likewise, returns from innovation are more than just profits from new offerings. There are returns from improving processes, saving costs, and culture.
That is why this workshop starts with defining what innovation is and how you invest in your innovation system. There are no right or wrong ways to define or categorize your innovation system, but you have to have enough alignment with your team before diving into the numbers.
How it Works
Define Levels and Scope of Innovation.
Define and Estimate Investments in innovation and returns from innovaiton.
Model and Forecast ROI. Create alternative scenarios for various innovation strategies.
Realistic estimates, not wishful thinking
To model ROI from innovation, we have to evaluate investments, returns, and timing. However, this information is rarely recorded or available to innovation managers. Managers are sent on an impossible data hunt or forced to rely on their individual experiences and assumptions to make decisions.
Our estimation process requires zero pre-work, data mining, or accounting knowledge. Instead, we use your team’s experiences to get a sense of what is actually happening and compare them against each other. These are not exact measurements, but with each round, we get more alignment and closer to reality.
Starting with data from other companies helps calibrate your team to be in the ballpark of realistic numbers. From there they make their own estimates based on their experiences. After everyone on the team gives their own estimate along with their assumptions we read each other’s responses and adjust our estimates accordingly. Each round of conversation and reestimating narrows the range of responses where truth is likely.
Eventually, rough estimates gain more confidence as your team learns from each other. Lastly, we take the data and run a simulation of your innovation system. Instead of ignoring the uncertainty of your estimates, we include it in our model as variance to forecast ROI. The result is a realistic range of what you can expect from investing in innovation as well as identifying areas where there is the most uncertainty and opportunity for growth.
ROI from Innovation
Best Practices from Top Performing Companies
Revenue Invested in Innovation
Revenue from Innovation
Years before ROI
Establishing where you are today is the first step to making improvements and reaching world-class standards. We use industry data to show what “above average” and “the best” could look like for your company. But more importantly, is to plan for the future. So when you adjust your investments and have realistic expectations for returns, timing, and how the data will be tracked.
Free Webinar – October 3rd 1:00 PM EST
Innovation ROI Best Practices Webinar Series
Learn what, when, and how to measure innovation ROI.
The Eureka! Ranch and Innovation Engineering Institute has partnered with the Innovation Research Interchange (IRI) to explore Innovation ROI best practices.
Greg Lemmon, Eureka! Ranch Statistician will discuss what we’ve learned so far including:
- Importance of defining the scope of innovation
- Project ROI vs System ROI
- Top Investments in innovation
- Top Returns from innovation
- Benchmarking data
- When to measure or estimate ROI
- Opportunities to work together
Eureka! Ranch – Helping Established Organizations Do New & Meaningful Work
Established in 1986, the Eureka! Ranch is known for big ideas. When organizations realize that doing the same old stuff isn’t going to cut it anymore, they come to the Eureka! Ranch with their challenges and leave with an abundance of unique solutions and possibilities.
The Eureka! Team not only gets people to invent big, disruptive ideas, but also give them the courage and skills to take action.
Their success is based on a scientific and data-grounded approach to creativity and innovation. Change is difficult, but not impossible, and with Eureka! Ranch’s system, change can become reliable and repeatable.
Demystifying Innovation ROI
“A simple approach that is more useful than our overly complicated spreadsheets”
Get In Touch
3849 Edwards Road
Cincinnati, OH 45244