Five ways innovation management helps boost RD ROI-Tarun Bansal

The current COVID-19 pandemic has already triggered an economic recession, with a direct impact on production and sales. Not only that, but critical functions such as intellectual property predict an impact as R&D centers expect to receive budget cuts on non-product development activities. But there is a silver lining in all of this, because now is the right time and the right opportunity to focus on intellectual property.

The innovation management process is often unstructured and could benefit from adopting some of the best practices tested in most R&D organizations. The challenge is to review the way we recognize not only R&D and its return on investment, but also to develop and assess the different stages of innovation management to measure the value created in the innovation process, thus producing dramatic changes in our competitive position. Managing innovation processes and optimizing the lifecycle of innovation management best practices, which has long been a fragmented field, is more important than ever.

In this article, we will briefly discuss five ways in which the adoption of innovation management best practices will have a direct favorable result on the ROI of R&D. In addition, these practices can be efficient and provide you with tangible metrics to assess your existing workflows to manage innovation, often referred to as “Innovation Management”.

1. Targeted innovation management leads to budget and talent optimization:

Well-defined and targeted practices in innovation management could in fact define the result of the effort that the whole team will deploy. Problem detection takes into account contributions from all hierarchies such as customers, industry experts, IP professionals, innovators and other stakeholders instead of a simple top-down approach or announcements from CXOs that can lead to erroneous efforts being made and not being used. of potential. It is important to determine the goal and to evaluate the time, effort, money and energy that we put into achieving one or more of the following objectives:

  • Impact on business
  • Technological impact
  • Market impact

Problem research aligns the intellectual property strategy with the business strategy of the company, taking into account the capabilities of the think tank, while thinking in terms of products that are crucial to the markets and thus place the company in a competitive position. Problem scouting allows us to get started early on, clearly define the team’s vision, and identify the right problem suited to that particular time frame or session that we plan to put this process in place.

2. Leads to a stronger patent and product portfolio:

Developing a stronger product and patent portfolio becomes more important after this economic downturn. It is a standard expectation of any R&D department to introduce new features and cutting edge products that would enter the market and bring returns on that investment. Streamlining our intellectual property processes is important in today’s highly competitive world where every business innovates. This puts great pressure on innovators, as their performance is highlighted and measured when a company operates under adverse circumstances.

Companies need to have a stronger patented product portfolio in order to better market themselves and attract more customers as the market recovers. Likewise, CEOs and CXOs want to make decisions based on the R&D effort and R&D results of the department. They just don’t want R&D teams to be innovative; they also want them to be efficient enough to contribute to the overall growth of the business.

3. Balanced metrics to measure ROI allow companies to measure tangible progress:

To correctly assess the ROI of the R&D department, we must take into account two different parameters. One is the type of value we add to the business like new features in products, continuous improvement and development, customer centric problem solving and the second is the type of value we generate through our creativity, such as the creation and contribution of intellectual property. intangible assets. Having well-defined metrics in place helps companies focus on innovation and meet pre-defined goals. When setting up these metrics, it is important to ensure that they do not stifle the creativity of innovators but rather serve as guiding parameters at different stages of innovation, from pre-ideation to harvest. of the invention.

3. Encourages R&D to constitute an intangible asset in a company’s portfolio:

Intangible assets (AI) are one of the most essential components of knowledge-intensive industries where new added value is often based on irregular, specialized and non-repetitive activities. It is the R&D team that will generate value in terms of intangible assets that a company has in valuation. When it comes to intellectual property fraternity, it’s no surprise that 90% of companies derive their valuation from intangibles. This has increased remarkably over the past 40 to 45 years, and the industry has witnessed a significant shift in the maintenance of tangible versus intangible assets, and this is where the intellectual property fraternity becomes. relevant.

4. Ideas that are properly captured, filtered and nurtured have a better chance of conversion: harvesting of inventions

Generally, it has been observed that inventors / innovators are not sufficiently motivated to write down their ideas and follow them through the process until IP approval. This can lead to the loss of potentially rewarding ideas. A structured framework of Invention Harvesting, in which internal or third-party service providers help these inventors to better capture and shape ideas.

An idea selection group or an intellectual property committee may be responsible for selecting the ideas with the greatest commercial value or the technically sound inventions. Once you’ve decided that it’s a good invention and you have enough disclosures that you can use it internally, you put it in for further evaluation. When you identify an idea that is emerging but has good business value, you need to provide a support system for that inventor. A structured process of pre-ideation, ideation, and then idea protection also helps companies decide on the best IP filing strategy.

When all the fundamental structures have been taken care of and tested, innovation management, in essence, can be a stand-alone system, where everyone knows their role, their efforts are focused, there is global collaboration, and good ideas are brought forward. converted into good products. In addition, once these processes are implemented, the chances of converting an idea into a patent increase.

Disclaimer: The opinions expressed in the above article are those of the authors and do not necessarily represent or reflect the opinions of this publisher. Unless otherwise indicated, the author writes in his personal capacity. They are not intended and should not be taken to represent official ideas, attitudes or policies of any agency or institution.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *