Value Creation - The ultimate goal of Innovation

Why innovate?

Some might argue that companies innovate to gain competitive advantage high, streamline the organization, or creating intellectual property - including patents, trademarks and other protected - that create value in the portfolio.

Many reasons why you can say for the search for innovation. Yet, without purpose or the result of innovation may be more interesting than value creation. This parameter is the ultimate measure of return on investment when you fit the role of innovation in creating value.

In a nutshell: innovation done right the value creation of units - for the organization, its customers, its stakeholders internal and external shareholders.

Successful innovation turns ideas into money. All processes, creativity, time, sweat, research, dream, refining, and retesting modeling effort to turn into tangible results and important.

This includes innovation, which affects all sectors of society, or organization - not only in creating a new product or service. Improving the business model or network, enabling a new process based, creating a new channel, make or model the customer experience delivery, or offering a new product, increasing product performance, or provide a each new service creates value.

Nowhere is this more important and evident in the acquisition process. If you were to look at acquisitions with and without a patent portfolio, I would say that a portfolio of well established and managed by a patent or IP can double the value of the company. My former company, Airspray, has created new packaging and delivery process that has transformed into foam soap. It 'was a company with a typical value of 7-8x EBIT. However, the addition of this patent to its portfolio has resulted in a 15x EBIT paid when the company was acquired in 2006.

This is particularly important in today's market. The financial aspects continue to hold already written down the prices of corporate shares. Companies are challenged to find ways to increase their value to stakeholders - as well as to keep customers and prospects engaged and the purchase of goods. Value creation at the expense of innovation can be really critical. As evident Airspray example, an article in our patent portfolio almost doubled EBIT paid at time of purchase. This example is not unique, but was the result of careful and thoughtful focus on the value created by innovation.

Moreover, value creation and innovation that can improve the immeasurable good corporate brand. Between the addition of new products, reviving the dress business, even launching new marketing campaigns or advertising creative, customer value can be created through the components of value added and greater public face of these efforts.

Of course, it is essential to find that delicate balance between costs, prices, and return. The balance is, in part, seeking stakeholder input and feedback from customers during the development of any innovation process.

The arguments for innovation are, frankly, undeniable. Value, brand enhancement, share price and the perception among the various stakeholders can be high innovation done right. Add the equation to include intellectual property obtained during the process, and the overall ROI can be well worth the investment .......