Exploiting Chaos

150 Ways to Spark Innovation During Times of Change

150 Ways to Spark Innovation During Times of Change - an award-winning business innovation book by Jeremy Gutsche, CEO of Trend Hunter

Issue link: http://book.trendhunter.com/i/42053

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ADAPTIVE INNOVATION · Portfolio: Pursue Alpha Pursue dispropor tionate value IN PORTFOLIO MANAGEMENT, alpha is the term for the excess profit, the amount beyond what you should have made, given the level of risk you took. The concept suggests that you should only pursue projects that create disproportionate value. Michael Dell relates this concept to Research and Development (r&d), where he believes companies become too fixated on the glamour associ- ated with large innovation budgets. He believes this causes managers to lose focus on the purpose of innovation itself: 224 "The amount of money invested in research and de- velopment has long been a source of pride in the in- formation technology industry. For much of the last decade, it has been looked upon as a leading indica- tor, not only of the value of the company, but of your future . . . increased value to customers, is far more im- portant than the actual money you spend." 66 Innovation needs to deliver real value.

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