You need to speak “finance” to sustain your innovation efforts long-term.
Kick-starting communication and nurturing resilience is sometimes the most challenging part of monetizing innovation. It’s not surprising that almost 54% of innovating organizations struggle to bridge the gap between innovation strategy and their return on investing in innovation.
To get buy-in from your organization, you need to explore innovation from the mindset of financial returns.
Innovation efforts need to be tied to numbers.
Increased M&A activity and the restrictions of the pandemic created intense downward pressure on companies to reduce budgets and yet continue to increase financial performance for shareholders. Innovation teams no longer have the luxury of innovating without results in mind. Developing a clear direction and linking ideas to revenue-driven goals can help innovation leaders get the support they need to get buy-in from their organizations.
Keep funding flowing to innovation departments.
Working with innovation leaders at Fortune 500 companies, it’s our experience that the primary reason why leaders focus on return on innovation is to keep the funding flowing so that they can continue to positively impact the valuation of their company. One of the core challenges innovation leaders experience is the lack of clear and direct communication within their organizations. To continue generating the positive impacts of innovation, companies need to communicate both on the process and the finances available to them.
Companies that don’t invest in innovation are at risk.
For an organization to drive significant long-term growth, companies need to invest in many innovation initiatives and be ready to fail in most of them. That risk is how you find the ones that pay for the rest. Lean innovators, including competitors, create valuable innovations when you are not looking. Those companies are more likely to transform, grow faster, and generate higher profits.
So how do you stay ahead?
Never ever has anyone come to our company and said, “We just need new ideas,” “We need to have more fun,” or “We are just exploring what is possible.”
Most say, “We want to disrupt the market before we are disrupted.”To do this, your team must define expectations around investment and innovation, set clear, measurable metrics, and allocate a budget to the most profitable ideas. RIDG can help your team learn and utilize the frameworks and tools you need to generate a focus on outcomes and establish metrics that can measure ideas and profitability. Quantifying the financial impact of your innovation efforts is the surest path to keeping your funding flowing.
Learn more about RIDG’s customized innovation process, which guarantees scalable product or service design and continuously identifies increased revenue opportunities. From the customer experience journey to inspiring new ways to package everything you already have, we can help your team unlock new business value.