This book provides a practical guide for measuring your company’s innovation ecosystem.
Why this book?When a company is committed to growing through innovation – not just exploiting the existing business models – standard accounting documents offer insufficient and, often times. irrelevant data.
Who is this book for?
- executives looking for a new way of measuring corporate performance in a world where accounting-recognized assets are becoming commodities
- investors seeking better ways of looking at a company’s growth potential
- managers who need to valuate innovation product teams using not only financial indicators
Latest Thoughts about measuring innovation
This article was originally posted on The Future Shapers where I’m a regular contributor. Although in principle everyone agrees that corporations need to get better at mimicking the venture capital world when it comes to taking investment decisions in ventures, in reality this is proving harder to apply. One of
This article was originally posted on The Future Shapers where I’m a regular contributor. Today all industries go through changes, making an understanding of the factors that influence purchase decisions highly important. With every firm attempting to gain a desired share of the market by providing the highest quality products
This article was originally posted on The Future Shapers where I’m a regular contributor Measuring innovation at product team level is not enough to have an innovation accounting system. Innovation has become an important activity for the survivability and future profitability of a company. Therefore more and more stakeholders are
Table of Contents
Chapter 1: Context
Before we can talk about innovation accounting we have to talk first about what is accounting, how did we get to the point where financial accounting is creating more problems than it solves, what is innovation and, lastly, how is innovation accounting defined.
Chapter 2: The principles of an innovation accounting system
From the business line to the macro context every enterprise is different. Hence their innovation accounting systems will differ too. But no matter how different companies are, their respective innovation accounting systems will have to follow a certain set of principles for them to be useful. Remember that the mantra of principles being universal while tactics are contextual applies to innovation accounting systems too.
Chapter 3: Tactical innovation accounting
To understand an organisam you first need to understand a cell. Much in the same way, to understand how to measure an enterprise innovation ecosystem you need to understand first how to measure a product team. We’d be looking at some tools, concepts and KPIs which can tell whether or not teams are making progress or just burning cash.
Chapter 4: Managerial innovation accounting
Measuring teams is not enough to have a functioning innovation accounting system. For a system to actually work you need to be able to take the right decisions at the right time – thus you need to zoom out from the team level to the managerial level using the right tools and KPIs.
Chapter 5: Strategic innovation accounting
Putting it all together for executive, stakeholders and investors. Aggregating team level data to KPIs that executives can use to make better decisions regarding the future of the company while at the same time conveying the health of the corporation’s innovation ecosystem to stakeholders and investors.
Chapter 6: Working with startups. Startups valuations
Acquiring and partnering with startups is big on every corporation’s agenda these days. Understanding how to do due diligence that’s looking beyond the accounting books can make the difference between betting on a unicorn or riding a dead horse.
Chapter 7: Measuring innovation culture
Culture is like a cloud. You can see, it impacts your day but you can’t touch it. But what you can do, is to measure it, and by doing so you can take actions that will influence it.
Chapter 8: Measuring your ecosystem’s HR capabilities
Measuring innovation HR capabilities is the first step in improving them. Putting everyone through a certain training might, or might not be the right thing to do. Only by measuring the HR capability you will know what training programs do you need to add and what impact past trainings had on your company.
Chapter 9: Starting tomorrow
Your battle plan for starting implementing an innovation accounting system in your company.
Chapter 10: Conclusions
How will an innovation accounting system impact your company and what to expect in the short, medium and long term from your journey.
About the authors
Dan is the co-creator of AIM, the assessment tool for Innovation Maturity. He started his career in entrepreneurship, being involved with technology startups across the world. Puzzled by the questions ‘why are innovative products mainly launched by startups?’, he dedicated himself to enterprise innovation strategy – specifically on the changes blue-chip organizations need to make to allow for new ventures to be built in a corporate setting. In this capacity he worked with companies like Deutsche Telekom, Bosch, Jaguar Land Rover, Bayer, John Deere or Allianz. With multiple corporate wide transformations under his belt, Dan possess the right skill-set to move companies beyond innovation theatrics.
Esther Gons is the founder and CEO of GroundControl. GroundControl is innovation software to manage your innovation ecosystem. The platform focusses heavily on innovation accounting and helps corporate startup teams with the development of new business models. GroundControl works with clients such as Schiphol Group, DHL and ABN Amro.
Esther is author of The Corporate Startup and The NEXT Canvas and is an international speaker on topics of corporate innovation, innovation accounting, portfolio management, and startups. She has been an entrepreneur for over 20 years and mentored over several hundred startups so far, e.g. as investor at NEXT Startup Ventures, lead mentor in the Rockstart Accelerator programmes, and Lean Startup Machine weekends.