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 [...]

2021-03-05T12:41:33+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 [...]

2021-02-25T13:54:54+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 [...]

2021-02-11T16:03:00+09:30

The Future! Understanding Innovation Accounting – a historical perspective – Part 3

The Future By Elijah Eilert The next re-evolution Equally to Sloan’s need for different information nearly 100 years ago, managing innovation requires us to gather information we didn’t need before. We need different information in accordance with a project’s stage within a product life cycle. It is information that, for example, enables a metered [...]

2021-02-27T21:11:34+09:30

The Present! Understanding Innovation Accounting – a historical perspective – Part 2

The Present Accounting is not the problem, but accounting has a problem In this age of big data, extracting information is simple and cheap. The accounting tools we have available today are designed and work very well if we have historical data available. But when it comes to innovation you have little to no [...]

2021-02-11T16:03:00+09:30

The Past! Understanding Innovation Accounting – a historical perspective – Part 1

Traditional accounting methods measure and manage innovation efforts but too often it is one of its biggest disablers. Conventional metrics can't predict and measure progress in a meaningful way. Ironically therefore, current accounting tools, metrics and funding processes can work against a company's goals of future proofing through innovation. The inefficiencies in corporate innovation [...]

2021-02-11T16:03:00+09:30
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