Valuing Corporate Innovation

This book presents tools for valuing and controlling corporate innovation. It combines a well-established theoretical framework with case studies at Siemens that illustrate the practice of valuing and controlling innovation and underline the strong link between theoretical concepts and practical application. Innovation is a key factor determining the success of companies and since corporate innovation consumes large quantities of resources, the issue of how best to distribute these resources among different projects is crucial. For an optimal resource allocation, companies need valuation tools to assess the benefits, costs and risks of competing projects. The energy sector is an example of a market that is strongly driven by innovation, and as such the book describes the processes and the potential of digitalizing product development and outlines the valuation process for a long-term innovation project in this sector - the development of the latest Siemens gas turbine.

Gunther Friedl joined the Technical University of Munich (TUM) as a professor of management accounting in 2007 and has been dean of the TUM School of Management since 2010. He holds both an M.Sc. in business administration from the University of Munich and an M.Sc. in physics from the TUM. He received his PhD and the postdoctoral qualification in business administration from the University of Munich. Before joining the TUM, Gunther Friedl was a professor at the University of Mainz. He has been visiting scholar at Stanford University and guest professor at Warsaw School of Economics. Gunther Friedl is author and co-author of several textbooks and monographs on management accounting. His current research interests lie in the area of executive compensation, performance measurement, and valuation. His work has been published in respected journals such as the European Journal of Operational Research, OR Spectrum, Research Policy, and Schmalenbach Business Review.

Horst Kayser has been Chief Strategy Officer of Siemens AG since 2013. He studied electrical engineering and business administration at the Technical University of Darmstadt and gained his Master of public administration at Harvard University and his PhD in business administration at University of Mannheim. After working for McKinsey & Comp for six years he joined Siemens Management Consulting (SMC) in 1995. He became managing partner of SMC in 1998. He has held several positions at Siemens AG, including Chief Executive Officer of Siemens Ltd. South Korea and Chief Executive Siemens UK. Before his current position he was Chief Executive Officer of AEG Power Solutions B.V. and of KUKA AG. In addition to his work on the board of Siemens AG, Horst Kayser is a member of the supervisory board of KENDRION N.V.