Ninety percent of senior executives say that innovation-driven growth is integral to their company's success, and most report that they're spending more on innovation efforts every year. But nearly half say they're unhappy with their return on these investments.
Payback addresses this critical problem. Authors James Andrew and Harold Sirkin show that successful innovation has little to do with luck and everything to do with understanding and controlling the factors that drive profitability. Based on BCG's work with leading companies worldwide, Payback introduces the tools companies need to succeed:
* The "cash curve," which analyzes four variables that contribute to—or prevent—payback: start-up costs, speed to market, speed to scale, and support costs. This reality check shows whether an innovation is on track to generate payback.
* The four indirect benefits of innovation—knowledge acquisition, brand enhancement, ecosystem strength and organizational vitality—that must also generate cash.
* Three innovation business models—integrator, orchestrator, and licensor—that can affect an innovation's profitability.
* Guidelines for aligning an organization, including metrics that provide a clear picture of the outputs of innovation—both cash payback and indirect benefits—but also the inputs, such as time and money, and the overall effectiveness of the innovation process.
* Seven actions leaders can take—and cannot delegate—to improve innovation output.
See full Review.
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