Subject: managing innovation using stock and flow diagram

Posted by Gary Hirsch on 1/29/2009
In Reply To:managing innovation using stock and flow diagram Posted by Ah Kau LIM on 1/29/2009

Message:

If you think of innovations as having a certain useful life (before they're no longer innovative and have little value for the organization), the outflow is obsolescence. A simple model of innovation would calculate the outflow as Obsolescence Rate = Innovations/Useful Life. If you don't keep innovating, the stock will decline over time as past innovations become obsolete.

Gary Hirsch

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managing innovation using stock and flow diagram - Anderson, Lascelles 1/29/2009