Aalborg University Hospital
The Idea Clinic at Aalborg University hospital sets new standards in the hospital sector when it comes to valuation of the effect of innovation efforts.
The Idea Clinic at Aalborg University Hospital is leading the way when it comes to translating ideas from their staff into actual products and services that create value for the patients, the staff themselves and the hospital. But there was one challenge; the lack of reliable methods to document the effects of the organisation's innovation capability. This was not only important in relation to satisfying the hospital's many stakeholders, but also to a large extent in order to transform the Idea Clinic from a service function to a profit centre.
The Innovation Board designed a simulation model that the Idea Clinic uses to make the ideas that will give the biggest effects visible in relation to the uncertainties that are part of any innovation opportunity. The model, which is based on the state-of-the-art decision-making tool @Risk from Palisade, has given the Idea Clinic a tool in which the effects of innovation are visualised through profiles. These profiles determine precise probabilities for realisation of a given scenario, and at the same time show what even small variations in assumptions will mean for the business case. All business cases are consolidated at the portfolio level, so the consolidated value and risk are made visible and managed. The same is true of the trend in value and risk level in step with the conversion of critical uncertainties in assumptions into knowledge.
Collaboration with The Innovation Board has had several positive effects, says Kjeld Lisby, who is Innovation Manager at Aalborg University Hospital. "First and foremost, it has given us a credible way of evidencing the value of the organization's innovation capability. The collaboration has subsequently increased our awareness of how we optimize the use of innovation resources, which are a scarce factor in any organization.” He explains that they can now document positive benefits on all three bottom lines: "In many organizations, innovation and development are viewed as costs, but we can see that we both create financial benefits while at the same time increasing the patient’s quality of life and the well-being of the staff." He mentions that the results created in collaboration with The Innovation Board are being followed with great interest by several international healthcare innovation clusters.