This course is designed to provide an introduction to the different types of financial calculations that are used in innovation. In it, the participants will learn essential tools such as calculating net present value and decision-and-risk analysis as well as how to construct and analyze a financial business case. Critical applications such sensitivity analysis, tornado diagrams, and real option analysis will be covered. The course will feature practical illustrations based on the real-world experiences of the instructor. The course will include hands-on break-out sessions that will give participants confidence in applying these concepts. Upon completion, participants will quickly be able to develop and present financial analyses that will augment their technical and strategic work, thereby creating more value for their organizations.
- Time value of money
- Business case basics
- Elements of a financial business case
- Constructing and analyzing a business case
- Business case metrics (NPV, IRR, time-to-money)
- Hurdle rates and return on investment
- Parameterized business cases
- Importance of base case
- Sensitivity analysis and tornado diagrams
- Decision and Risk analysis
- Real Options Analysis
The session will include break-out sessions to work with the tools and techniques in order to evaluate understanding and also build connections with the other participants.
Who should attend this course:
The course is designed for both researchers who have recently assumed a team leadership role and for individual contributors who seeks to lead an innovation team in the future. It is designed for those who want to broaden their ability to develop and present innovation proposals by including compelling financial analyses. It is also appropriate for an innovation team member who wants to develop a broader understanding of innovation financials. This course can be viewed as a springboard to the participant’s professional advancement.
About the Instructor:
Dr. Spencer Pugh is an executive with 35 years of experience in technology development, product commercialization, and business management. He is the Principal of Prospect Ridge Consulting, LLC, and serves on the Board of Directors of the start-up MagPlasma. Most recently, he was Vice-President, Research and Development, for Michelman, a specialty chemical company headquartered in Cincinnati, Ohio. His global R&D team developed coatings and additives for printing, packaging, and composite applications. From 2005 to 2015, Dr. Pugh was with Battelle in Columbus, Ohio, where he was the Vice-President and General Manager of the Energy and Environment Global Business Unit. With offices and laboratories in the US and the UK, his 300+ person team delivered R&D results in oil and gas exploration and production; alternative energy systems; electric grid management; environmental assessment, monitoring and remediation; environmental chemical analysis; and agrochemical formulation and evaluation. Before coming to Battelle, Dr. Pugh was a Senior Laboratory Head in Research and Development with Eastman Kodak in Rochester, New York. His team developed new products for enhanced performance, improved manufacturability, and reduced cost for Kodak’s manufacturing plants in China, France, and the U.S. He holds a B.S. in Chemistry and Physics from The College of William and Mary and a Ph.D. in Physical Chemistry from Stanford University. Dr. Pugh is also a Six Sigma Black Belt and a Certified Licensing Professional (CLP), licensed by the Licensing Executives Society. He has been active in the Innovation Research Interchange (IRI) for 15 years and has served on its Board of Directors twice.
IRI Members: $295
Non Members: $395
Due to limited seating, we request that you cancel at least 48 hours before a scheduled class. This gives us the opportunity to fill the class. However, if you do not cancel prior to the 48 hours, you will lose the payment for the class.