Page 17 - 15 Best Practices to Manage and Finance Innovation

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BEST PRACTICE
COLLABORATIVE PROCESSES / / METHODS / / TOOLS COLLABORATIVE PROCESSES / / METHODS / / TOOLS Management
THE CHALLENGE OF: INNOVATION THE CHALLENGE OF: INNOVATION FUNDING FUNDING THE OF INNOVATION MANAGING PROJECT COSTS AND ACTIVITIES TO SECURE MAXIMUM FUNDING FUNDING SETTING UP EFFECTIVE REPORTING TO SECURE BETTER FINANCING BONNES PRATIQUES
Having a a a a a a a a a a system in in in in place to to manage both the the activities and costs of innovation projects helps to to secure maximum funding not just at at at the the the initial application stage but throughout the project project lifecycle It’s a a a a a a a a a a a a a complex process which relies on on accurate financial reporting and monitoring of all the costs associated with a a a a a a a a a a a a a a project such as as materials services staff time etc Reporting on on on costs to funding organisations is is a a a a a a a a a key part of of obtaining project finance but can be both time-consuming and in in in in fin in in in in the event of of an an an an an audit risky unless precise monitoring processes are fin in in in in place Implementing these processes isn’t easy because you have to to to to work with very different different sets of of tools (budget monitoring monitoring vs project monitoring monitoring for example) which are often structured in in different different ways Achieving a a a a a a very quick return on on your investment in in in in in terms of project funding management management and and and decision-making therefore requires a a a a a a a a a a a a a a a comprehensive understanding of of all the the financial technical and and and management management aspects of of a a project «There are many advantages to setting up and implementing an innovation project pipeline to to monitor progress As
well as helping to fine-tune ideas as as projects progress retaining only those with the most potential it it also limits interactions between upstream innovation (concept research) and downstream innovation (development) All project staff should be engaged in the process which might involve extra training »
John Thomspon
Operations Manager
ABGI-UK
CASE STUDY
ABGI-UK
A stock market-listed company operating in in the energy sector had been claiming R&D tax relief for many years As
part of its project management processes all projects and associated costs are monitored Using our tried and and tested methodology and and after
carrying out an an an exhaustive analysis of the company’s technical activities and associated expenses we we were able to maximise its R&D tax benefit We worked with the company’s management and finance teams to streamline their cost-recording processes and identify additional costs relating to suppliers and fixed assets which had previously been overlooked As
a a a result the company’s R&D tax relief benefit was boosted by more than 10% Real-time project progress and budget monitoring Monitor your entire portfolio of projects within a a a single project project management system Provide complete cost reports
to to investors
and funding organisations Keep efficient traceable financial records fin in the event of a a a a a tax audit EXPERT ADVICE
R&D TAX RELIEF
Having a a solid R&D project management process in place is key to securing and maximising R&D tax relief One of your main areas of focus should be the monitoring of the time dedicated
to R&D project project activities by associated project project staff Having a a a a defined and well organised time recording system in place is essential In companies with large research teams the establishment of a a a a a a practical “how to” guide is is helpful to to ensure consistent and accurate record keeping within clearly defined areas of project activity More generally your R&D project management process will also enable you to aggregate the entirety of all project costs costs such as: equipment costs costs external research services or the costs of filing patents This way you are able to control the entire project expenditure and and justify it as and and when necessary Having a a a a a a complete record of all financial documentation is invaluable in in the event of an audit Focus ON