Embed Size (px)
Citation preview
JPK
Gro
up
John Barker – Formerly at Wolters KluwerJohn Barker is the Former Vice President of Strategy & Competitive Intelligence in
Wolters Kluwer’s Global Platform Organization. In this role, John provided a strategic direction for Wolters Kluwer’s global tax, legal, and regulatory content delivery
platform, Global Atlas, and shared strategic product design best practices globally across Wolters Kluwer. John has an extensive background in professional publishing, including as a Product Manager and Executive Legal Consultant at LexisNexis, and a consultant, and award-winning Account Manager for Thomson Reuters. John holds a Juris Doctor, cum laude, from Tulane University Law School, New Orleans, a Master
of Science in Regulatory Compliance from Northwestern University, and a BA in Philosophy, magna cum laude, from the Catholic University of Leuven, Belgium. John recently achieved the status of Certified in Health Care Privacy Compliance (CHPC).
View presentation online at: https://jpkgroupsummits.com/sandiegols2019-attendee
Password: JPK
2019 Leading Strategy ForumJune 20-21, 2019 • San Diego, CA
Session: Best Practices for Innovation Accounting and Governance
June 20, 2:15 pm
BEST PRACTICES FOR INNOVATION ACCOUNTING & GOVERNANCE
1
1-847-331-4810
Speaker Bio Thought Leader | Strategic Thinker | Innovator | Product Development | Investor and
Entrepreneur | Competitive Intelligence | Market Intelligence
Multicultural Management & Consulting: NA, APAC, EU, ME, Russia
Leadership: C-level & VP-level coaching & mentoring; Customer Insight; Design Thinking;
Persona-based User, Customer, and Process Journey Maps, Focus Groups, Structured
Interviews, Contextual Inquiry and Design, AB Testing, and Customer Advisory Boards
Certifications and Licenses: Juris Doctor; Certified Compliance and Ethics Professional
(CCEP); and Certified in Healthcare Compliance, Healthcare Privacy Compliance, and
Healthcare Research Compliance
Education:
Katholieke Universiteit te Leuven – BA in Philosophy
Tulane Law School – Juris Doctor
Northwestern University in Chicago and Evanston – Master of Science in Regulatory
Compliance
2
https://www.linkedin.com/in/johnwbarkerii/
1-847-331-4810
Innovation Imperative
3
WHAT IS INNOVATION
ACCOUNTING?
Innovation Accounting Origins
Lean Startup Cycle
Ideas
Build
Code
Measure
Data
Learn
Minimally
Viable
Product
Innovation Accounting Origins
◦ Principles of Lean Startup
◦ Create a minimum viable product (MVP) for testing assumptions and gathering data to make needed changes
◦ A/B Testing, Cohort Analysis
◦ Tune the MVP based on the data that was gathered
◦ Pivot or persevere – KPI is value to the customer
Principles of Innovation Accounting
Quantify the market value of new business opportunities that are
ambiguous and uncertain
Distinguished from “vanity metrics” that do not provide real insight
into performance
Describe clear causes and effect that address the business viability of
the product
Monitor how experiments are moving towards achieving greater
business value
Eric Rise: Innovation Accounting is “a way of evaluating progress
when all the metrics typically used in an established company
(revenue, customers, ROI, market share) are effectively zero.”
Innovation Accounting Template from ◦ Free to download and use at https://upboard.io/innovation-
accounting-learn-startup-venture-tools-templates/
◦ Image reproduced with permission from
◦ Use as inspiration for creating your own template
◦ Monitor in Google or Bing: “innovation accounting” AND
(“vanity metrics” OR “lean startup”)
Level 1: Customer Focused Dashboards
Image reproduced with permission of
Level 2: Leap-of-Faith Assumptions Dashboards
Image reproduced with permission of
Level 3: Net Present Value Dashboards
Image reproduced with permission of
INNOVATION ACCOUNTING BEST
PRACTICES
Focus on Innovation Accounting Maturity
◦ Align innovation efforts with your organization’s risk profile
◦ Where does your organization belong in the innovation adoption curve?
◦ Adopt & adapt an Innovation Maturity Model
◦ Understand your existing & future business models
◦ Continually refine your innovation governance model
Align Innovation Efforts with Your Organization’s Risk Profile
Image License:
Creative Commons
Increasing Risk Along the Innovation Adoption Curve
Disruptive Innovation Fast Follower Slow Follower
Clearly Understood Business Models Increase Innovation Accounting Maturity
◦ Do you and your organization know your business model(s)?
◦ Is there a shared vocabulary and understanding for your business
model(s)?
◦ What business models should your organization adopt?
Business Model Navigator
16
Business Model Canvas
The Business Model Canvas
is a shared language for describing,
visualizing, assessing, and changing
business models
17
Innovation Accounting Accuracy Along the Innovation Adoption Curve
Image License:
Creative Commons
Innovation Accounting Accuracy
Disruptive Innovation Fast Follower Slow Follower
Innovation Accounting Sophistication Grows with Increasing Innovation Maturity
Study & Learn
CEO Sponsor
Board Support
Run Experiments
Create KPIs
Innovation Accounting
Fast/Slow Follower
Innovation Types
Refine KPIs
Enterprise Rollout
Optimize KPIs
Optimize Organization
Refine Processes
Refine KPIs
Optimize Program
Innovation Accounting Accuracy
Level 1
Level 3
Level 2
Level 4
Level 5
INNOVATION GOVERNANCE
Innovation Governance Considerations
◦ Board responsibilities
◦ Degree of centralization of accountability
◦ Funding
◦ Centralized or distributed
◦ Royalty/license model
◦ Risk profile
◦ Slow or fast follower or disrupter
◦ Shared technology services
◦ Innovation Types
◦ Business model innovation
◦ Technology & process innovation
◦ Customer & market innovation
◦ Supply chain innovation
◦ Geographic issues
◦ Lines of business
◦ Innovation maturity level
INNOVATION GOVERNANCE
MODEL 1
CENTRALIZED MODEL
INNOVATION GOVERNANCE
MODEL 2
PRODUCT MANAGEMENT
ACCOUNTABILITY
INNOVATION GOVERNANCE
MODEL 3
INNOVATION COMMITTEE
INNOVATION GOVERNANCE
MODEL 4
DIVISION & ENTERPRISE OVERSIGHT
◦ D
INNOVATION GOVERNANCE
MODEL 5
ENTERPRISE & BUSINESS UNIT
OVERSIGHT
Business
Unit 1A
Business
Unit 1B
INNOVATION GOVERNANCE
MODEL 6
SUPPLY CHAIN INNOVATION
CENTRALIZED SUPPLY CHAIN MANAGEMENT
INNOVATION GOVERNANCE
MODEL 7
SUPPLY CHAIN INNOVATION
DISTRIBUTED SUPPLY CHAIN MANAGEMENT
Innovation Governance Model 8 – Joint Venture
Innovation Governance Model 9 – Spinoff
Innovation Governance Model 10Software Development Kits
Multi-country Innovation Maturity
◦ Some companies concentrate R&D activities in countries classified as tax havens
◦ Innovations are delivered by a shared services team by license to divisions and businesses in other countries
◦ Businesses and divisions might pay a royalty fee
◦ Leverage different innovation maturity levels
◦ What is incrementally innovative in one country might be disruptive in another
◦ Can release a product in one country as a pilot, perfect it, and roll it out to other countries.
◦ Can leverage differing legal & regulatory regimes for innovation.
QUESTIONS & DISCUSSION
