Future Squared Episode #179: The Business Case Alternative - How to Support Disruptive Innovation at a Large Company

Future Squared Episode #179: The Business Case Alternative - How to Support Disruptive Innovation at a Large Company
September 10, 2017

Future Squared Episode #179: The Business Case Alternative - How to Support Disruptive Innovation at a Large Company

Disruptive ideas usually don’t see light of day at large companies. And when they do, it’s not for long. This is because traditional financial metrics such as NPV, IRR and RoNA are used as measures of success.

In addition, the allocation of capital for new ideas hinges on business cases that ask us to forecast indicators such as the target market, the market size, the payback period and aforementioned financial metrics - all factors that can’t be reliably predicted when it comes to disruptive innovation which is inherently uncertain and chaotic.

In the odd case that capital is allocated to a potentially disruptive idea, it’s usually pulled prematurely because the financial metrics or assumptions that made up the crux of our business case were faulty - which is to be expected for almost any truly disruptive idea because if you’re reliably estimating what every variable looks like from day one, you’re either a prophet, have a crystal ball or are just pursuing incremental innovation, the opportunities for which are much more visible and obvious, so too the underlying assumptions. 

So what’s the alternative? Listen to find out or read at: www.collectivecampus.com.au/blog/the-bu…rge-company 

If you've got any thoughts on this model then I'd love to hear from you at: @steveglaveski on Twitter or email me on steve@collectivecamp.us  

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Steve Glaveski

Steve Glaveski is the CEO and Co-Founder of Collective Campus which he established to help companies and their employees to create more meaningful impact in the world in an age of rapid change and increasing uncertainty. Steve also founded Lemonade Stand - a children's entrepreneurship program, wrote the Innovation Manager's Handbook vol 1 and 2, hosts Future², an iTunes chart topping podcast on corporate innovation and entrepreneurship and is a keynote speaker. He previously founded HOTDESK, an office sharing platform and has worked for the likes of Westpac, Dun & Bradstreet, the Victorian Auditor General's Office, Ernst & Young, KPMG and Macquarie Bank. Follow him at @steveglaveski and Book a free 15-minute call with Steve to talk through your innovation objectives.

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