Innovation Projects - Applied Support Services

INNOVATION PROJECTS

For a business the purpose of innovation is to create value. Value may be generated by incremental improvements to existing products, or breakthroughs such as entirely new products, services or processes. Value may be found in cost reductions or in efficiency improvements. Innovation can build value from completely new and different business models or entirely new ventures. The innovation process should focus on those products and markets where innovation has the greatest potential to provide the organisation with a strategic advantage. The way organisations can drive innovation is to continually discover, create, and develop new ideas. Then refine those ideas into useful forms - to earn profits, increase efficiency, reduce costs, service new markets, or achieve policy or strategic objectives. We are experienced in turning ideas into tangible project proposals.  ​We can work alongside your team to:

Brainstorm, create and develop innovative ideas
Align innovation proposals with organisational goals and objectives
Document and refine innovative ideas into basic project plans
Prepare the scope, time and cost for each innovation project
Specify the business disciplines needed to bring the new product or service to market
Validate the market need and value proposition the innovation offers
Identify potential risks or obstacles to the innovation project
Present the innovation proposal to staff, the board, investors or funding agencies

New and Innovative Business Models

​​Often the focus of innovation projects is to generate alternative business models or new and different ways of achieving organisational objectives. New business models are transforming and disrupting traditional industries and markets. Some firms respond to changing market conditions by continual product innovation. Others look at inventive ways of adjusting and refining their business model.  ​We can help you identify the building blocks of alternative and different business model, and:

Create new ideas for value propositions based on your capabilities
Align your value propositions to your customer segments          
Evaluate your channels to market and customer relationships
Model alternative revenue streams
Identify what key resources are required to make the business model work
Plan the key activities needed to deliver the value proposition
Recognise what alliances and partnerships are required to optimise the business model
Calculate the costs required to operate the business model

Working with these basic building blocks, you will gain a better understanding of how your current business model works and develop ideas for new and different business models for your organisation. New and different business ideas can be generated from the skills, experience and talent within your organisation. We can provide you with a business model design and evaluation process that all of your team members can work with and understand. Using workshop based brainstorming, we can facilitate the process of generating and testing new business ideas. Your business model provides a framework for exploring alternative directions and strategies. 

Learn more about Business Models

The Importance of Market Validation in the Innovation Process

​Market validation helps confirm the assumptions and expectations behind your innovation project. These may be around alternative business models, or new product, service or process ideas. When you are creating new product concepts and new value propositions for customers, think about:

The size and value of the target market
Trends and external forces acting on the market
Identifying customer needs, product fit and gaps in the market
Competitor activity
Intellectual property protection strategies
The cost of developing the new product or service
The price customers are prepared to pay
The product launch and go-to-market strategy
Revenue projections and return on investment

Market validation is a key component in your innovation project. Market validation provides a reality check around the value proposition for new business models. Market validation provides important data when preparing the business case for resourcing the new idea. Market validation needs to be factored in to capital investment decisions. We are experienced in working with companies to undertake the research and analysis required to validate new value propositions and new markets.

Learn more about Market Validation

­­­­­­­­­­­­­­­­­­­Innovative Research and Development Projects

​An innovation project may involve new product, service or process research and development. In New Zealand firms can apply for government funding for qualifying R&D, or R&D Loss Tax Credits. These schemes place definitions and rules around what is R&D, innovation and eligible expenditure. Both the IRD and grant funding agencies provide guidelines on how research and development expenditure is defined. Mostly they refer to accounting definitions of R&D, namely FRS 13 and NZIAS 38. Agencies also publish lists of activities or costs they specifically exclude from R&D.

Research and Development Definitions

Research is defined as original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. R&D is distinguished from non-R&D by the presence or absence of an appreciable element of innovation. If the activity departs from routine or breaks new ground it is normally R&D; if it follows an established pattern it is normally not R&D. Development is defined as the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use.

Research and Development Expenditure

Research and development transactions are normally accounted for across more than one general ledger code. R&D expenditure must be spent on eligible R&D activities and incurred on goods or services that relate to R&D. R&D expenditure calculations must be evidenced by company records. Where apportionment methods are used to calculate R&D expenditure these need to be documented and justified. 
The categories of expenditure include:

Salaries and wages of employees and shareholders wholly or partially engaged in R&D
Overheads apportioned to R&D
Materials and consumables used in R&D
Depreciation of tangible assets used in R&D
External expenditure on third party experts, consultants and contractors

Learn about Grants, Loans and Incentives for Innovative Business Projects

How we can Help Calculate your R&D Expenditure

We are experienced in working with applicants, their tax accountants and research providers to define, record and claim eligible R&D expenditure. 

Learn more about R&D Expenditure

R&D Tax Incentive to Encourage Innovation

The R&D tax incentive has been available since April 2019. The aim is to lift private sector R&D spend to 2% of GDP over ten years.  The Ministry of Business, Innovation and Employment, IRD and Callaghan Innovation manage the scheme.

Learn more about the Research and Development Tax Incentive

Innovation and Intellectual Property

​Your innovation project may generate new IP for your organisation. You can learn about the basics of IP at the New Zealand Intellectual Property Office. The Office provides information on patents, trademarks and designs. At the Intellectual Property Office you can search the registers, pay renewal fees, file trade mark applications, and find forms and guides on intellectual property in New Zealand.

Innovation IP – Support and Funding

Callaghan Innovation offer a programme to help New Zealand business learn more about Intellectual Property management. They state “Many NZ businesses are reluctant to manage their IP actively. Improved business understanding and management of IP can add value to an R&D programme, reduce IP related risk, improve business planning and lead to improved growth prospects”. 

Callaghan Innovation

Modular housing production line

Our Innovation Project Management Experience - Examples

​A well-reasoned project plan clearly sets out your objectives, deliverables, timelines and estimates their cost. It helps focus your team's direction and reduces project risk. We are experienced in assisting organisations to manage a range of business projects, including:

Brainstorming, idea generation, objective settingBusiness case preparationBusiness process mappingCentral Government planning and policyConference workshop event managementDatabase designDue diligenceExport project plansGoal settingInformation systemsInnovation projectsInternational market development plans

Market research and market analysisMarket validation projectsMarketing strategies and plansNegotiationNew product developmentNew service developmentProject budgetsProject plans for board, shareholder and stakeholder reportingProject plans for raising finance, capital, or investmentProject timelines and Gantt chartsResearch and development strategies and plansStaff action plans to achieve organisational objectives