Traditionally, resource and priority setting for business initiatives have been focused on improving performance of the current business model. However, when enterprise companies are financing and investing in innovation, a different approach is required.
In 10 Lessons for Enterprise Innovation Centers, we discuss how enterprise companies can invest in what are essentially bets on the future. When investing in innovation, enterprise companies need to take an approach that is optimized for experimentation and learning, and not incremental bottom-line improvement.
Two key steps to investing and financing differently in innovation include:
- Financing is not tied to quarterly reviews or ROI.
- Financing is flexibly structured to fund one step at a time and not the entire journey.
The question needs to be about “What do we need to do to experiment, learn, and get to the next stage?” Depending on the answer, enterprise leaders need to be willing to adjust how much is spent.
For more information on what enterprise companies need to know as they start their innovation journey, visit here.