Return On Idea (ROI) is a great framework for sifting profitable ideas from novelty or artist for its own sake. It helps to predict winners and the framework explains the need for creative tension between financial rigor and imagination to produce profitable revenue. Leaders and even entrepreneurs at times make copious excuses to avoid making predictions citing lack of data , uncertainty about the future and lack of accuracy of previous predictions.As a consequence many ideas are launched without testing, modelling or predicting results just going on gut feel. The challenge of ROI is to manage uncertainty while predicting success. As the saying goes ,"Dont over invest in yesterday's breadwinners and start imagining tomorrows breadwinners."

1. www.coachNme.in
RETURN ON IDEA
“If my mind can conceive it, and my heart can
believe it, I know I can achieve it.”
…….. Jesse Jackson
Rakesh Kochhar FCA,PGDBM (XLRI)
www.coachNme.in

2. Return On Idea
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ROI
How do ideas create money ?
How to predict winners ?
Cant deal with the creative tension
between imagination & financial rigor !
Presented By: Rakesh Kochhar FCA,PGDBM(XLRI)
Business Performance & Executive Coach

3. Return On Idea
ROI
Typical Questions:
? How do I know when I get a good idea?
? I have this idea but I don’t know what to do with it !
? How do I know my idea will work? How can I predict the future?
? I don’t know if my idea will stay relevant with the fast changing
business scenario?
? What are my chances of being successful with my idea?
Corollary:
× I am too busy fire-fighting than to be thinking of new things at this
point of time !
× What if fail? Impact – financially, ego or both?
× I need still more information /data to make a precise decision !
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4. IDEA BENEFIT CYCLE
Reference: Adapted from DMA & CIM report
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Customer
RESPONSE
PREDICT
VALUE
IMAGINE Profitable
VALIDATE
IDEA REVENUE
DEMONSTRATE
VALUE
Bs. Env.
Presented By: Rakesh Kochhar FCA,PGDBM(XLRI)
Business Performance & Executive Coach

5. IDEA BENEFIT CYCLE
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Objective:
 predicting how much financial value these ideas will contribute
 delivering and demonstrating that value really was created
 establishing learning that will improve future ideas, predictions and results
Imagination is fundamental to leaders & entrepreneurs. Imagination is not, however,
just about novelty or artistry for its own sake, ideas must create financial value too.
Predicting future value ensures that every idea is assessed for its financial contribution
and not just based on wish fulfilment
Demonstrating value requires gathering credible evidence for review and to provide
feedback to improve future ideas and predictions.
Customer Response searching for explanations of what causes strong customer
responses and what factors are weak including customer habit patterns.
Bs. Env. Analysis look for external factors that influence revenue and profit patterns,
use them to refine the ideas and calibrate predictions. These will include competitors
activity and economic trends.
Presented By: Rakesh Kochhar FCA,PGDBM(XLRI)
Business Performance & Executive Coach

6. HOW TO PREDICT SUCCESS
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(VALUE or ROI)
Pre-conditions:
 Manage Uncertainty - accept uncertainty and risk.
 Start imagining tomorrow’s breadwinners.
 Co-creation- Nobody has a monopoly of good ideas –
thinking together will co-create more value.
Predicting Success:
 Gather lots of ideas and gather them fast.
 Screen using simple observations of customer habits.
 Analyse the patterns from the past to provide clues to
the future
 Look for data from outside their own firm, about their
business environment
 Experiment with a range of forecasting assumptions
Presented By: Rakesh Kochhar FCA,PGDBM(XLRI)
Business Performance & Executive Coach

7. ROLE OF THE BUSINESS
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COACH
To listen to the ideas and not be prescriptive or
judgemental
Asking insightful questions - Coaching is about
asking ‘why not’ and ‘what if’…….. Don’t say “yes
but”
Keep the focus on benefits - the idea is valuable
only if the potential customer cares that the product
or service will enhance his/her life - Coach role is to
facilitate that connection is made between the idea
and the benefit.
A person with a new idea is a crank until the idea succeeds…Mark
Twain
Presented By: Rakesh Kochhar FCA,PGDBM(XLRI)
Business Performance & Executive Coach

8. Supermarket transforms into a
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Convenience Store
CASE STUDY
Background: An entrepreneur opened a 20,000 sq. ft supermarket with the
ambition of opening a chain of such stores across town taking first mover
advantage
Challenges: Within 2 years of opening chains like Big
Bazar, Subhiksha, Spencer, Reliance entered changing the dynamics of the
business
Coaching Intervention: Worked with entrepreneur to clarify his mission for the
co. Facilitated him to draw a SWOT for his current business. Helped him ideate
possible strategies for meeting the changes in the business environment.
Outcome: The entrepreneur changed his vision from becoming the city’s biggest
supermarket player to becoming its largest chain of convenience stores. The new
strategy was to open shops within each residential colony and have one large
supermarket flagship store. This hub and spoke eased his logistics and provided
combined buying power also giving easy recognition to his brand leading to new
growth & profitability.
Presented By: Rakesh Kochhar FCA,PGDBM(XLRI)
Business Performance & Executive Coach

9. Rakesh Kochhar
Business Performance & Executive
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Coach
Rakesh has 25 years of multi functional experience gained across
corporate, consulting and social sectors and geographies. He has worked
in companies like Oracle, eFunds, Jumbo Electronics, E&Y, PWC, Start-Ups
and SME’s. His last position was as Sr. Director – Global Revenue, Oracle.
Rakesh has successfully empowered large professional teams to deliver
peak value across countries and cultures leveraging his natural coaching
skills to create self belief and emergent leadership qualities amongst its
members. He has consistently demonstrated leadership with a global
mind-set to drive growth.
Rakesh graduated with a PGDBM from XLRI and is also a Fellow of The
Institute of Chartered Accountants of India. Rakesh also devotes his time
to a NGO - Society For Kidney Support, of which he is the founder
president. Of late Rakesh fancies himself as an amateur chef !
Presented By: Rakesh Kochhar FCA,PGDBM(XLRI)
Business Performance & Executive Coach

10. Looking forward to hearing
www.coachNme.in from You
GET IN TOUCH
rakesh @coachnme.in
Cell# ++91+8285347019
Web: www.coachnme.in
“NAMASTE”
Presented By: Rakesh Kochhar FCA,PGDBM(XLRI)
Business Performance & Executive Coach