Why Read This
Most investments are based on business cases that show a positive return on investment (ROI). The numbers within the business case represent best estimates for the costs and benefits that will result if the investment is made. However, with innovative ideas or products, there is not yet enough information to make informed estimates. Rather, these initial investment activities are designed to answer the questions and produce the data required to write the standard business case. As such, the "business case" for an innovation program can't look at traditional measures of value in traditional time frames. Rather, organizations and their CIOs will need to judge the business benefits accrued from such activities with longer time horizons and with metrics more typical of the venture capital community than traditional direct business value measures. This report helps CIOs build a portfolio of innovation investments in line with their organization's needs. It replaces an earlier report that was the business impact report of the previous version of the innovation playbook. We've rewritten the report based on new research.