Disruptive ideas usually don’t see light of day at large companies. And when they do, it’s not for long.

This is because traditional financial metrics such as NPV, IRR and RoNA are used as measures of success. In addition, the allocation of capital for new ideas hinges on business cases that ask us to forecast indicators such as the target market, the market size, the payback period and aforementioned financial metrics - all factors that can’t be reliably predicted when it comes to disruptive innovation which is inherently uncertain and chaotic.

In the odd case that capital is allocated to a potentially disruptive idea, it’s usually pulled prematurely because the financial metrics or assumptions that made up the crux of our business case were faulty - which is to be expected for almost any truly disruptive idea because if you’re reliably estimating what every variable looks like from day one, you’re either a prophet, have a crystal ball or are just pursuing incremental innovation, the opportunities for which are much more visible and obvious, so too the underlying assumptions.

So what’s the alternative?

Listen to find out or read at: https://www.collectivecampus.com.au/blog/the-business-case-alternative-how-to-support-disruptive-innovation-at-a-large-company

If you've got any thoughts on this model then I'd love to hear from you at:

@steveglaveski on Twitter or email me on steve@collectivecamp.us

Follow me on Instagram: @thesteveglaveski

Listen on iTunes @ goo.gl/sMnEa0 

Listen on Stitcher @ www.stitcher.com/podcast/future 

Listen on Google Play @  bit.ly/FSGoog

Like us? It'd make our day if you took 1 minute to show some love on iTunes, Stitcher or Soundcloud by subscribing, sharing and giving us a 5 star rating.

To sign up to our mailing list head to www.futuresquared.xyz

For more information on Collective Campus, our innovation hub, school and consultancy based in Australia and Singapore check out www.collectivecamp.us‍‍‍
‍
GET COACHED BY LUCAS:

https://www.ergogenic.health/product/coaching

‍

‍