Powerful new approach to investing in business innovation that reduces your risk and increases the possible rewards.
“This book is a must for any Business Development Manager, Corporate Strategist, R&D Director, and anyone else who is accountable for growth in a corporation. It is an easy read that is practical and not fraught with useless academic theories.”
Ron Pierantozzi, Ph.D., CEO of PPT Research and Former Director, Business Development, Air Products & Chemicals, Inc.
A Breakthrough Approach to Investing in Business Innovation
Most companies analyze investments using tools that bias them against real innovation and lead them to avoid their best opportunities. This book introduces a breakthrough alternative: Opportunity Engineering.
Drawing upon recent advances in financial analysis, but without requiring a lot of math, the authors show how to engineer the risk out of uncertain opportunities so you can pursue more high-payoff innovations. You’ll learn how to escape from the “go/no-go vise” and implement more flexible decision-making that considers all the business alternatives, models, and opportunities associated with each project. You’ll learn how to systematically structure high-potential projects to limit downside exposure and boost your potential upside.
The authors show how to define the scope of investment opportunities, identify key drivers of potential profits, document assumptions, design out major risks, and tease out key challenges and vulnerabilities.
Using these techniques, you can escape the mindset that limits you to low-impact innovations and begin pursuing serious growth opportunities--and make business uncertainty work for you, not against you.
Why companies avoid their best opportunities for innovation
Getting past risk-averse analysis that snuffs out experimentation and innovation
Systematically engineering your opportunities
Capturing the upside, slicing out the downside
Beyond rigid “go/no-go” decisions
How flexible, staged innovation creates more opportunities for delivering value
Constructing an engineered growth portfolio of innovation investments
Optimizing your mix of core-enhancing investments and high potential “long shots”
About the Authors xi
Chapter 1 Breaking the Go/No Go Vise Grip on Innovative Growth 1
Chapter 2 The Opportunity Engineering Process 9
Chapter 3 How to Engineer Opportunities: Stage I: DDP 21
Chapter 4 How to Engineer Opportunities: Stage II: CheckPointing 41
Chapter 5 Creating an Engineered Growth Portfolio 71
Chapter 6 Applying Opportunity Engineering Throughout Your Business 95
Chapter 7 Project Valuation Using EVS Software 123
Appendix A The Underpinnings of the EVS Software 143
Appendix B EVS Formulation 147