Innovation Portfolio Management

Part 3 of 3 (see part 2: Resource Allocation – The practice)

We are not magic elves!

'All of you have solved the problem, so give yourselves some credit!'

Setting

On Thursday Feb 23, nearly 40 MBA postgraduates from the Stockholm School of Economics gathered to participate in a highly visual hands-on workshop called the iPM Challenge. Having delved into diverse aspects of business in their studies, and coming from across many industries, the participants brought fresh perspectives on the iPM Challenge to the Googol team.

Innovation Performance Index (iπ) defines the ratio between the value adding output and the input of resources needed to develop and provide those products and services. As a benchmark, the metric should be larger than 3.14. Possible, you tell me?

In its simplest form, iπ is described as:

That is:

• NPV is Net Present Value
• I is Investment.

What gives the ambitious Innovation Manger a good night's sleep? From Googols experience, it is the comforting feeling of knowing that your organization is working with the right projects and delivering the most value on time spent. This is what Innovation Portfolio Management (iPM™) is about!