Innovation Options are superior to ROI for justifying investment in innovation
At the end of 2016, Nils heard and met David Binetti at a Product Tank meetup. He was blown away by David’s take on the ROI of Innovation and Innovation Options. So we asked David to come in for a more in-depth interview.
This is the second of two parts of what turned into a long and informative interview. In this part, Nils, Rob, and David discuss why Innovation Options and innovating in general are important exercises for the growth of companies. We also discuss portfolio theory and more useful examples of where and how Innovation Options are already being used. David also gives us the ever useful 3 Things you can do today.
In case you missed it, check out Part 1 first. The topics in Part 2 are dense and we pick up right in the middle of the discussion, so setting the stage is helpful. In Part 1 we discussed the current mode of thinking around innovation in companies. That is, fudge the numbers so you get approval. We then explore David’s concept of Innovation Options and how one might apply it to their company’s innovation goals. David also gave some tips for communicating to Finance and other stakeholders.
Thanks to David!
The team is incredibly grateful for David’s participation in our podcast and for humoring us as we dug deep into these rather complex topics. If you want to learn more about Innovation Options or the work that David does, please visit his site dbinetti.com/. You can also check out his Medium post with an overview of Innovation Options. You can see the famous “sideways Christmas tree” in that article. Also, as promised you can make your own sideways Christmas tree with the tools at http://innovation-options.com/.
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