On May 15, 2018, KNect365 and SmartOrg held a webinar on “Opportunity Cost vs. The Cost of Opportunities.” Our panelists were David Matheson of SmartOrg, Shawn Williams of Rogers Corporation, and Udi Chatow of Applied Materials.
In this webinar, the panelist discussed how to cut the clutter in your innovation portfolio, focus on the opportunities with the most significant upside potential, and optimize the use of your innovation budget to create growth. You will learn skills to help your Innovation and Finance colleagues align on where and how much to invest to grow your firm.
After the prepared presentation, the panel answered audience questions.
See the replay here: Opportunity Cost vs. The Cost of Opportunities
Key Takeaway: Understanding the costs of your available opportunities – in difficulty, time and money – is the key to assessing the opportunity costs of your portfolio choices.
Unless you have sufficient management bandwidth, technical capability, time and money to execute every idea in your innovation portfolio, you will only be able to fully pursue some of the projects. The remaining projects will either be set aside completely or, worse, be underfunded and understaffed, never getting the resources necessary to reach either success or failure. It’s usually straightforward to understand the cost of opportunities you pursue, but sometimes you can lose sight of the opportunity cost of the portfolio choices you make.
David is a co-founder of SmartOrg, Inc., connecting Innovation and Finance. He has decades of experience working with companies in industries from nuclear waste cleanup to movie production. He is co-author of book The Smart Organization, based on benchmarking hundreds of companies. He teaches Strategic Portfolio Management in executive education at Stanford University.
Shawn has over 20 years of Technology Management, Product Development, & Innovation Leadership. Prior to joining Rogers, he worked at Plextronics, W.R. Grace and Greene Tweed. He is experienced in the research and development of specialty chemicals & materials in diverse industries such as microwave communications, power electronics, aerospace composites and industrial seals & gaskets, to name a few.
Udi is an expert in innovation methods and new product development. Prior to joining Applied Materials, Udi spent many years at Hewlett-Packard. He has helped create new products and new markets in several areas of computer technology and electronics.