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Lester CraftOne of the biggest business books of 2007 will feature innovation ... That book, more than likely, will be the newly published Payback.
— Innovate Forum
Authors James Andrew and Harold Sirkin, senior partners in The Boston Consulting Group, describe an approach to managing innovation based on the concept of a cash curve--which tracks investment against time. They ask the questions you ...
Authors James Andrew and Harold Sirkin, senior partners in The Boston Consulting Group, describe an approach to managing innovation based on the concept of a cash curve--which tracks investment against time. They ask the questions you need to ask: How much should you invest in a new product or service? How fast should you push it to market? How quickly can you get to optimal value? How much additional investment should you pour into sustaining and building the product or service?
Payback offers you practical and economically sound advice on when to pursue cash flow indirectly by first pursuing other benefits, such as brand and knowledge. It also shows you how to reshape the cash curve by using different business models--integrator, orchestrator, and licenser--each of which balances risk and reward differently.
The authors then present a short list of decisions and activities that you must make--not delegate--to achieve a high return on innovation. You won't find facile answers in Payback--but you will find valuable insights and practical guidance for mastering one of the most challenging and critical business activities: innovation.
Posted December 11, 2007
A lot of books on innovation make it sound like an end in itself, as if innovation carries the answer to every business problem. James P. Andrew and Harold L. Sirkin sound a refreshing note or, rather, several of them. They argue that companies must evaluate business innovation according to the direct or indirect financial returns it produces, its ¿payback¿ ¿ and that most products fail to earn back their investment. They then discuss the issues you need to consider if you are investing in innovation: the models, factors, processes and more. While some of their discussions are a bit too sweeping or general, the authors¿ specific stories of innovation attempts that failed or succeeded illustrate how systematic evaluation could have helped companies estimate a product¿s chances of success. As a result, this book is a realistic antidote to innovation intoxication. We recommend it to anyone who is trying to plan seriously and realistically for innovation in a business context.Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.