Innovation Accounting: The Failure of The Business Case

By Tristan Kromer & Elijah Eilert In times of uncertainty, we strive for predictability. The relentless pace of change driven by rapid technological advancement has made more and more companies paranoid. They look over their shoulders trying to find their own blindspots. They try to anticipate the next wave of disruption, like a tourist who [...]

2021-09-20T11:46:07+09:30

Innovation Accounting – a Historical Perspective

Traditional accounting methods measure and manage innovation efforts but too often they are one of innovation’s biggest disablers.  The standard business cases and financial modeling for example are not helpful in funding corporate innovation initiatives nore measure progress in a meaningful way.  Perversely, standard accounting methods, metrics and funding mechanisms can work against a [...]

2021-09-14T21:31:29+09:30

The Danger of Corporate Growth Metrics

By Tristan Kromer KPIs can kill you. Or at least it can kill your efforts to create a truly disruptive innovation. And I can’t think of a more deadly KPI than growth. Of course, growth is every company’s aspiration. There are revenue growth targets, market share growth targets, margin growth targets, and even simple [...]

2021-07-21T19:41:10+09:30

Engines of Growth: What Is a Retention Rate?

By Tristan Kromer Paid, retention, viral. Those are the three “engines of growth” suggested by Eric Ries in The Startup Way. Companies can pick one of the three to be great at, but they generally can’t manage more than that. Why? How do these engines work with your innovation strategy? How do they differ [...]

2021-09-08T15:03:23+09:30

What Is Innovation Accounting?

By Tristan Kromer Innovation Accounting sounds like one of those semi-humorous oxymorons like “accurate rumors,” “the rules of anarchy,” or “airline schedules.” Innovation sounds exciting! It’s about ideas and novelty. Things we’ve never seen before. It’s ambiguous and full of uncertainty. It’s mysterious and seems utterly unquantifiable. Accounting is the thing you dread doing at [...]

2021-09-13T10:06:08+09:30

Why Are You Starting Your Innovation Program from Scratch?

By Tristan Kromer More and more companies are jumping on the innovation bandwagon and starting their own innovation program. It could be in the form of an accelerator, an innovation outpost in Silicon Valley, or a full, lean digital transformation of the company’s core processes. But too many are falling into bad practices right [...]

2021-09-14T22:18:58+09:30

Innovation Ecosystem Design Using Liebig’s Law of the Minimum

By Elijah Eilert and Tristan Kromer Liebig’s Barrel When governments, corporations, and entrepreneurs start building innovation ecosystems, there’s a flurry of predictable activity.  Create meetups!  Start angel investor groups!  Make sure we have social media accounts tweeting about entrepreneurship! But all this effort doesn’t necessarily lead to progress. The goal is to increase the [...]

2021-09-14T21:47:03+09:30
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