Most CFOs would agree that companies should strive for innovation; R&D, when executed well, can provide great value for a company. But how do you measure that value and how much money and time ought to be invested? This CFO eBook will help you to better calculate the ROI of innovation.
As the economy shifts gears after the recession, companies are moving from hoarding to spending. In the process, R&D is increasingly viewed as a means to growth. The challenge for CFOs is evaluating R&D from a finance perspective. This means stepping away from traditional financial analysis tools, and becoming innovative themselves.
The ROI o a piece of equipment is simple to calculate. It is a bit more difficult with a software system. And then there’s R&D. Intangible assets such as patents can be exceedingly difficult to value, but it must be done nevertheless. How is intellectual property valued in your company?
R&D must be focused on a particular audience as well. In the global economy, innovation is oftentimes focused on developing products specifically for consumers in rich countries rather than emerging markets. But becoming innovative in your innovation strategy can be profitable. Can your company gain by developing products with emerging markets as the primary consumer base?
To achieve innovation, you must have innovative processes. From determining which financial tools to use to selecting a market for your efforts, CFOs must become the innovators themselves. This CFO eBook will set you in the right direction for your creative endeavors.
Topics covered in R&D Spending: The ROI of Innovation include:
- The role of CFOs in pursuing R&D projects;
- Reverse innovation and how it can create value for your company;
- How to make innovation a tangible strategy;
- Pricing intellectual property;
- Tax credits that will benefit R&D spending.