Curriculum
- 6 Sections
- 35 Lessons
- 1 Day
Expand all sectionsCollapse all sections
- The Economics of Innovation – Balancing Risk and Reward6
- 1.1Innovation economics and the uncertainty premium
- 1.2Staged investment logic and portfolio diversification
- 1.3Horizon 1-2-3 innovation portfolio structure
- 1.4Real Options Theory and stage-gate funding models
- 1.5Linking innovation performance to shareholder value
- 1.6Diagnostics Drill – Classify organization’s R&D pipeline into core, adjacent, and transformational innovation categories
- Valuation of R&D and Technology Projects7
- 2.1DCF limitations and risk-adjusted valuation for R&D
- 2.2Real Options valuation (ROV) and decision-tree analysis
- 2.3Scenario modeling and probability-weighted NPV
- 2.4Cost of delay (CoD) and innovation ROI metrics
- 2.5Technology readiness levels (TRLs) and investment decision checkpoints
- 2.6Case Study: Pharma R&D portfolio valuation at Pfizer; Automotive innovation ROI modeling at Bosch
- 2.7Exercise: Perform a simplified “options-based” valuation for an innovation project with multiple future scenarios
- Portfolio Management & Capital Allocation Frameworks8
- 3.1Portfolio mix optimization (risk, ROI, and strategic fit)
- 3.2Balancing incremental vs. breakthrough R&D
- 3.3Capital allocation frameworks for innovation portfolios
- 3.4KPI dashboard design – innovation yield, success rates, and time-to-value
- 3.5Governance and stage-gate mechanisms for funding control
- 3.63M’s 15% rule for innovation freedom balanced with portfolio discipline
- 3.7Example: Siemens & GE – dynamic rebalancing between core R&D and digital initiatives
- 3.8Exercise: Create a Portfolio Heatmap visualizing their innovation mix, financial exposure, and strategic alignment
- Financing Innovation – Internal & External Mechanisms7
- 4.1Internal funding: R&D reserves, innovation funds, cross-subsidization
- 4.2External financing: venture arms, joint ventures, public-private partnerships (PPP)
- 4.3Government incentives and R&D tax credits
- 4.4ESG-linked innovation financing
- 4.5IP-backed lending, licensing, and monetization
- 4.6Case Study: Tata Group’s “Innovation Fund” and Siemens Energy’s R&D co-financing ecosystem
- 4.7Group exercise – Design a blended financing model for a hypothetical cross-functional technology innovation
- Managing Risk, Uncertainty & Failure in Innovation Portfolios5
- 5.1Innovation risk matrix – technical, market, and financial risk
- 5.2Post-failure learning ROI and sunk cost bias mitigation
- 5.3Governance mechanisms – portfolio steering committees, kill-rate analysis
- 5.4Linking R&D governance with corporate risk frameworks
- 5.5Portfolio Shock Drill – Respond to a simulated R&D budget cut by reprioritizing projects using portfolio metrics.
- Building the Innovation Portfolio Dashboard & Roadmap2
Activity: Innovation ROI Challenge- teams design a 12-month roadmap to improve capital productivity and innovation yield
Prev