Company Value Creation through Effective Innovation Process Management

Miroslav Špacek,Emil Vacík

doi:10.24840/2183-0606_004.003_0006

Miroslav Špacek, Emil Vacík

Open Access

https://doi.org/10.24840/2183-0606_004.003_0006

Copy DOI

Abstract

Company value creation is considered a significant metric to measure corporate success. One possible method is the launch of innovative products that potentially attract new customers and capture a reasonable market share. This discussion highlights examples wherein heightening innovation activities through incremental increases in Research and Development spending, the number of innovative products in the sales funnel, as well as those innovative products in the marketplace impact company value. Yet, another company value driver, worthy of consideration, is the effective management of innovation processes. The Stage Gate Control Process embodies a recognized framework for effective innovation process management. Central to this manuscript is the case of PharmaComm, a pharmaceutical company that developed a customized version of the Stage Gate Control Process. By this way PharmaComm accelerated new products development and shortened time to launch. In adapting this methodology, it multiplied company value during the acquisition process.

Highlights

A basic strategic goal is to gain competitive advantage to surpass competitors and generate shareholder value
The second, if the intensity of Research and Development (R&D) activities expressed in terms of the number of R&D projects impact the increase of company value
The authors demonstrate how efficient innovation contributes to company value generation

Summary

Introduction

A basic strategic goal is to gain competitive advantage to surpass competitors and generate shareholder value. A company possesses key competencies as fundamental factors to generate competitive advantage. These competences are unique and difficult to imitate. For innovation to generate customer value, it is essential to be properly designed and launched in a timely fashion. To meet these demands, the company establishes functional and effective innovation-related activity management. The company establishes functional and effective innovation-related activity management In this regard, the authors propose two research questions.

Methods

Results

Conclusion