Finance Department Innovation

A guide to funding innovation and modernizing the department

Finance Department Innovation2018-12-17T16:47:31+00:00

About the Guide:

The finance department is one of the key gatekeepers of a modern company. No matter the department, decisions are almost always made with the following financial question in mind: “How does this affect the bottom line?”

For a company to improve, change and innovate over time, the finance department needs to operate in a such a way that it values future growth. Sometimes this means forgoing short term profits for future gains. While this may be a source of of anxiety for traditional finance departments, leaders in innovation owe their success to reshaping financial expectations.

Take Amazon, for example. The company’s traditional financial metrics, such as profit margins, are consistently lower than comparable internet-based businesses. And yet, Amazon’s share price continues to outpace other tech leaders.

This is an illustration of a company building a new relationship with finance — one based on the strategy unique to Amazon. And while we may not be Jeff Bezos, there are ways to reshape the relationship between innovation and the finance department, similar to the ways Bezos and Amazon have reshaped Wallstreet’s expectations.

This series of articles will teach you how to better fund innovation, manage expectations, in addition to providing insights on bringing your finance department’s technology stack into the 21st century.

Why Internal Innovation?

Innovation comes from every corner of an organization. History has shown that everyone from warehouse workers to network technicians can be the source of innovation. Our department guides break down innovation into discrete topics supported by insights from experts in the field to allow anyone to drive change in their environment.

However, internal innovation is just one step in the growth process. Explore our guides on building innovation tools, building an innovation strategy, understanding growth opportunities, and read hundreds of book summaries to supplement your learning.

If you want help implementing anything you find inside this content, contact us.

1

Innovation Funding

Capital Allocation and Portfolio Management

The first in a two-part series on innovation finance, this article outlines a new approach to the allocation of resources and the organization of innovation financing. The second article in the series, “Modernizing Finance: Metrics, Technology and Operations,” delves deeper to explain how a new budgeting framework and finance practices can support a transformation for future innovation success.

2

Modernizing Finance

Metrics, Technology and Operations

Our first article deconstructs the decision of whether to finance and resource a separate innovation department or operate ongoing creative teams. This second article digs deeper into the actual operations of a finance department to explain how changes there can support innovation for the future.

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