The growth of the company’s long-term value is increased by the growth of gross profit and in turn by profitable innovations ( RQ ). Profitable innovations are based on the customer’s needs, are original and beneficial to the customer both in the short and long term. One of the best examples of this is Amazon.com, whose 26 years of sustained growth confirm that these principles work firmly in both growth and recession.
As innovation is complex and difficult to predict, it is high risk. Nobel laureate Daniel Kahneman and Amos Tversky discovered that it is inherent in people to avoid risks in uncertainty and to make skewed decisions or avoid decision-making. Therefore, evidence-based methods should be used in these situations.
The ambi innovation method helps top 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.
The strong logic is shown by the clear links between customer needs, market opportunities, distinctive value, the flywheel of success, profitable innovations, gross profit growth and the bonus scheme.
Ambi’s innovation method is evidence-based:
1) takes into account exactly the needs of the company and the specifics of the operating environment;
2) is based on the best scientific evidence and best practices;
3) is based on long-term experience in advising top managers.