Annual Report | Innovation Management Game

Annual Report

Most important indicators of your company

Annual Report

Your Innovation Funnel:

The Innovation Funnel shows the number of projects in each stage of your innovation process. In this game it takes a project one year (one round) to get from one stage into the next stage. The number of projects in each stage is a direct result of your chosen strategy. It is important because it shows the effect of your strategy and gives you an indication of your short-term strength and your long-term focus.
 
The number of ‘products’ in the last column are products that are actually brought to market and are currently generating sales.


Your Innovation Budget:

Business Valuation:

The total value of you company is a combination of your current Market Cap: that’s your sales multiplied with 25% for each Blue Ocean and 15% for each Purple Ocean you have achieved and the innovation score and the creativity score (both relative to your sales). The innovation score is important for investors because it indicates that your company has a strong sense of technology and quality. The creativity score is important for investors because it indicates that your company takes time to strive for continuous innovation.
 
Blue, purple and red oceans are dependant on how unique your strategic position is in relation to other teams. The more unique your strategy, the higher the chance to be awarded a blue ocean strategy.
 
The table shows for every decision you can take exactly how it contributes to each of the 6 strategic dilemmas – or if it’s ‘stuck in the middle’. You can thus easily derive what you need to change to reposition yourself (into a blue ocean).
 
The size of the bubble indicates your market share: the bigger the circle, the more effective the strategy seems to be.

Sales:

The total sales of your company is a reflection of the number of products, both radical and incremental innovations, that you have sold last year and the price that consumers are willing to pay for your products. The number also include products that have been developed during earlier rounds and are still sold. The total sales are important because it gives you an overview of your performance compared to other companies in your market sector.

Market Share:

The market share pie gives an overview of the share your company has in the total market, which consists of you and your competitors. The share is based on the total sales of each company. The higher the market share, the better.

Product Sales:

The total sales of your company is a reflection of the number of products, both radical and incremental innovations, that you have sold last year and the price that consumers are willing to pay for your products. The number also include products that have been developed during earlier rounds and are still sold. The total sales are important because it gives you an overview of your performance compared to other companies in your market sector.

Tactical Agenda:

The Tactical Agenda table reflects the agenda of your company. The ‘long-term agenda’ is a reflection of your organization’s relative* investments on the different innovation types over the last 5 rounds. The ‘short-term agenda’ is a reflection of your organization’s relative investments on the different innovation types over the last round only. The score is always between 100% and 0% and the percentages in between indicate how the different types are comparing against each other in your strategy. This graph is important not only because you can use it in your analysis (does it actually reflect your strategy as you intended it to be? Is your tactical agenda in balance with the innovation funnel?) but also as a means to know how and where to invest in to change your strategy.
 
*Relative: because we compare the investments you did with the investments of other teams.

Strategy:

This positioning charts indicate how you position yourself against other teams. In the table you can find how each decision contributes to the different strategies. Each blue ocean gives you an extra 25% on your business valuation Market Cap, each purple ocean gives you an extra 15% on your business valuation Market Cap and each red ocean decreases your business valuation market cap with 10%.

Innovation & Creativity:

These scores reflect the effectiveness of your current strategy in terms of technological excellence (innovation score) and the fuzzy front end (creativity score). The creativity score is the average of your scores on “exploration” and ” open”. The innovation score is the average of your scores on “radical”, “product leadership” and “global”. Both are important KPI’s as they reflect respectively the robustness of your market-introduction strategy and your long-term strategy. Together with the total sales they are the most important factor for investors to determine your business valuation.

Competition:

The competitive analysis reflects a benchmark study of your strategy and tactics with the strategy and tactics of other teams. A 100% score means that the other team not only has the same order of innovation types on the strategic or tactical agenda, but they also have made the same investments. The lower the score, the more the difference. The benchmark is important because the success of your new innovations in the market is not only based on the quality and marketing of your products, but also on the uniqueness of your strategy compared with your competitors. A unique strategy will help you stand out. Moreover, it is important because it can help you in creating good collaborations.

Innovation Process:

These ratios compares the number of projects in a certain stage with the number of projects in the previous stage last round. It indicates the strength in this particular stage, because it reflects the way you are able to keep projects alive in the current stage. The strength of the ideation stage is not included in this figure, because it is the first stage in the funnel.

Economy:

This first graph shows the economic developments over the last 10 years. It shows the economic growth (in %), the consumer confidence growth (in %) and the unemployment growth (in %), which are all important figures to take into account when taking strategic decisions.
This second graph shows the economic forecast for the next 5 years. It shows the economic growth (in %), the consumer confidence growth (in %) and the unemployment growth (in %), which are all important figures to take into account when taking strategic decisions.

Financial Statement:

This is the financial statement of your company. The difference in net profit this year and net profit last year results in the extra innovation budget for this year.

Decisions & Investments:

This overview shows you how much your company has spent on the different aspects of innovation. Beware: you have started working in an already existing company where other people have already decided to invest in certain things without your approval. If you want to decrease the annual investment on that specific item, you have to decrease the budget by deinvesting in it. During the game you’ll get more privileges.

Written strategies: