Innovation Accounting Course

Quantify the chances of success for your corporate Startup earlier and better.

Course Overview

Innovation Teams that have done qualitative research and collected data from early user testing but need to show Product / Market Fit and project viability in a quantitative way will greatly benefit from this course. You will learn how to turn qualitative findings into quantitative predictions and take home a financial model even for an early project with high uncertainty. The model will calculate the most likely project outcome and help you define your next experiment. 

Business Cases for startups and corporate innovation initiatives are notoriously unreliable. But instead of throwing them away entirely, this course will give you a competitive advantage by making better decisions earlier, leveraging innovation accounting! 

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Benefits

This course will improve your ability to:

  • decide what project to fund
  • recognise the levers of growth for a particular business model
  • create transparency and better relationships between those that allocate and receive resources 
  • understand the most likely outcome of a startup/corporate innovation project 
  • identify and rank risky assumptions 
  • build a financial model over time, giving it the complexity it needs at each stage
  • feed new insights into your model easily 
  • measure project progress pre-/early revenue
Innovation Accounting Pirate Metrics - Pirate Surfing Exponential Growth

What do I get?

  • Interactive live workshops
  • Self-paced learning supported by videos and all necessary resources
  • Ad hock personal coaching
  • Make progress with your real project, not just examples
  • 3 Modules, Storyboarding, Financial Modeling & Monte Carlo
  • Certificate at the end of the course

When?

Teams
If you are a team with our minimum number of participants we are happy to find a time that suits you best.

Individuals
Start dates for our next “open course” on innovation accounting (Seats are limited, get yours now!).

  ASIA PACIFIC US / EUROPE
  • Wednesday, February 09, 2022, 10:30 am AEDT
  • Tuesday, Jan 25, 2022, 7:00 am PST
  • Tuesday, Jan 25, 2022, 4:00 am CET
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Why a Different Approach?

The vast majority of startups and innovation projects have historically not delivered what was initially promised. Many organisations have and will continue to lose money, or have not had the desired impact with their innovation projects. Accounting and the way we do financial modelling plays a huge role in this. 

Traditional financial modelling aims to calculate things like Return on Investment (ROI), Net Present Value (NPV), and so on, many years into the future. For innovation projects, these calculations are very inaccurate as they are built on layers of data-poor assumptions. 

To be fair, facts are hard to come by as innovation projects and startups are by definition doing something that is new. Therefore, conventional accounting has very little historical data as it is familiar with handling well. Everybody who has allocated or asked for resources for high-risk ventures knows this. The risk is often clear enough but managed in a way that can introduce even more risk. 

High-discount rates for future cash flow is one of these examples. While intended to mitigate risk, it sets a higher bar for startups or corporate innovation projects. Any experienced person driving an uncertain venture is familiar with this process. In an attempt to make sure resources can still be secured, these in/entrepreneurs know that they have to present higher predictions than initially calculated. This makes it less likely to achieve a certain target and all too often uses even more resources. It is one example of how applying well-trusted tools in an environment of high uncertainty is not helpful — and even counterproductive — for everyone involved. 

Innovation Accounting is designed to fill the gap where standard accounting falls short.

Innovation Accounting – Bridging the Gap between Innovators and Finance  

Getting from early research and mostly qualitative data to a financial model that assist the team and satisfies finance is hard if possible at all with traditional modelling and accounting methods. The innovation accounting approach visualised below is a step by step process to make this possible.

Innovation Accounting Process

Getting from early research and mostly qualitative data to a financial model that makes useful predictions and assist the innovation team as well as sponsors and the finance department can be tricky. Innovation accounting makes this possible.

This course,  teach you how to extract from even early-stage projects with mostly qualitative and few historical data the right metrics. Leveraging the Pirate Metrics for Startups approach you will identify and understand all the actionable metrics and lead indicators for success and avoid vanity metrics. 

In the next step, you will learn how to use a visual financial model using the metrics identified in the previous step before using a spreadsheet (templates are provided) for the first time again drawing on the outcome of the previous lesson. 

Lastly, we will guide you through how to express each variable within a confidence interval/range to enable a Monte Carlo Simulation. This statistical approach results in the best possible prediction for your model. Lastly, we will see how the analysis can help with a range of decision making and what to do next.

The approach, different from traditional financial modelling, identifies a venture’s key risks, levers of growth, and potential much more objectively than any traditional business case.

“The financial modelling provided by Innovation Metrics is the first major advancement in how Startup financial modelling is done since Excel was invented.”

photo of oliverOliver Ciancio, Innotech Advisory
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