Tuesday, March 13, 2007

Innovation... a new book entitled "Payback" makes the point that good ideas are not enough. You really need to "cash in" on the product. The authors identify 3 strategies... "Integration," becoming the sole owner and executor of the innovation and its only or primary beneficiary of rewards; "Orchestration," partnering on significant and important phases of the process as primary "owner" of the idea that drives its development; and serving as "Licensor," the owner of the idea and sometimes of its production and launching but having limited involvement thereafter. The authors analyze start-up costs, speed to market, speed to scale (time from launch until achievement of planned volume), and support costs to evaluate potential payback success.

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