Innovation

The growth of the company’s long-term value is increased by the growth of gross profit and, in turn, profitable innovations (RQ). A profitable innovation is based on customer needs, is original and more useful in both the short and long term. Because innovation is complex and difficult to predict, it is a high risk.

Nobel laureates Daniel Kahneman and Amos Tversky discovered that people make systematically biased decisions under risk. Therefore, evidence-based methods of decision making should be used in these situations.

The ambi innovation method helps managers make profitable innovation decisions by directing them to collect and use reliable data on customer needs and market opportunities, generate original innovation ideas, and make decisions with strong logic.

Strong logic is shown by the clear links between customer needs, market opportunities, the unique flywheel, profitable innovations, gross profit growth and the bonus scheme.