CREATE A BUSINESS CASE
Finally, we come to the creation of the Business Case The purpose of this document is to show how the opportunity you are proposing is:
- 1- a consumer desire/need;
- 2- that the company is able to exploit;
- 3- profitably.
In the previous steps, we went deeper into all relevant topics to evaluate the opportunity, and now you have a lot of information to present to the board. Care must be taken not to exaggerate the amount of information presented. The tip is that you demonstrate how opportunity can solve critical elements that everyone there can recognize.
The biggest risk of you trying to explain everything is losing the board's support that can get confused in the details and think that you have not come to a conclusion. Deliver relevant information as objectively as possible.
Then, with the opportunities selected by decision-makers, send a more in-depth presentation that sands up your entire research.
Here's how to build a business case with all the critical elements to present to the board.
Corporate Innovation canvas
The Corporate Innovation Canvas is the "one page" that must be done for each opportunity to be presented to decision-makers. It should be a strategic summary that clearly illustrates with precision everything that has been discussed so far.
This page should basically:
- describe the opportunity;
- show why it will have market acceptance;
- how the company can deliver it;
- what the company can profit from it.
It is important to note that a Business Case is different from a Business Plan. The first is a document that provides the information needed for decision-makers to make well-grounded investments, while the second is a more profound analysis that requires execution planning.
Corporate Innovation Canvas should have a format that gives decision-makers a quick view of the entire opportunity.
Example of Corporate Innovation Canvas
How to fill out the Corporate Innovation Canvas
I made a short manual for you to fill in the Corporate Innovation Canvas.
- Put the Opportunity Name in Question
- 1- Core
- 2- Adjacent
- 3- Disruptive
- Describe what is the proposal that will be brought to market.
- Who are the personas who this offer will serve.
- Who are the companies that have competitive offers for the personas in question.
- What are the challenges of the personas for "Get the Job Done."
- How the product offer solves the challenges of the personas, and what is their differential in relation to competitors.
- What is the value proposition of the solution (use as a reference the value study done previously).
- What is the startup (or set of startups) needed to deliver the offer.
- Illustrate how the other areas of the company perceive the opportunity (Question number 2 of the Functional Assessment stage).
- Insert the trend that most defends the opportunity.
Startup Readiness Level
- How much the technology and the market are ready for implementation.
Sales vs. Cost of Goods Sold
- Shows that you have an estimate of how much will be sold off the product and that you have a notion of the cost to achieve these goals.
Return On Investment
- Break-even analysis.
Note that all of the points mentioned above are critical and that each is based on some study done earlier. However, instead of making a long presentation, you deliver the data already consolidated on a single page enough to hold the board's attention – and there's still time to ask questions.
In addition to clarifying that the topic was very well studied before it was presented, the consolidation of information allows decision-makers to choose the opportunities they want to investigate better quickly.
At the end of all this work, I believe that you will gain the trust of decision-makers, who should combine a meeting to ask more questions instead of needing to read extensive material. If all goes as well as it should, you will have the green light of leadership to start the projects. This support is vital because it has the power to streamline processes and people and, consequently, accelerate the pace of innovation.
In the next chapter, we will talk about the adoption of the selected opportunity.