Innovation: Is not invention

CFOs are nervous about innovation because they associate it with risk and therefore cost. They also probably get it muddled up with invention. There is a difference. Invention requires trial and error and involves creating something new. Innovation on the other hand takes what already exists and makes it better.

So the innovation sales pitch to the CFO might resonate more if you explain that you are going to improve the return on the existing assets, rather than flail around in a ‘sandbox’ consuming resources on the off chance that you might discover something beneficial.

Invention is of course equally if not more important. But let’s take it one step at a time!