Managing Innovation: Integrating Technological, Market and Organizational Change, 5th Edition

Chapter 8

Building the Innovation Case

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The usual motive for developing a formal business plan is to secure support or funding for a project or venture. However, in practice business planning serves a much more important function, and can help to translate abstract or ambiguous goals into more explicit operational needs, and support subsequent decision making and identify trade-offs. A business plan can help to make more explicit the risks and opportunities, expose any unfounded optimism and self-delusion, and avoid subsequent arguments concerning responsibilities and rewards.

8.1 Developing the Business Plan

No standard business plan exists, but in many cases venture capitalists will provide a pro forma for their business plan. Typically a business plan should be relatively concise, say no more than 10–20 pages, begin with an executive summary, and include sections on the product, markets, technology, development, production, marketing, human resources, financial estimates with contingency plans, and the timetable and funding requirements. A typical formal business plan will include the following sections:¹

1. Details of the product or service.

2. Assessment of ...