Tag Archives: IPM

How to Quantify the Effects of Innovation?

An Adapted Valuation Model for Innovation! Innovation in IT Consultancy Services.

Innnovation NPV

Working in the IT Consultancy Services Industry for a bit over 20 years, innovation projects have been a major part of my job. Innovation is my passion but I often see innovation projects being approached as an art-form and not as a science. This is often due to limitations of traditional project management techniques and project valuation methods.

The drive to create a new innovation valuation model was triggered by three key questions:

  • Innovation is important but can it be managed?
  • Is innovation radically different compared to existing business processes?
  • Does innovation require special management techniques?

During the research I first defined what innovation is, next I defined a new innovation process model and finally I created a quantification model to put a value on innovation projects.

The innovation process model is based on 5 dimensions and 4 diamonds.

5 D's and 4 Diamonds Model
Continue reading