Some of the key points raised by the group were that:
- Many of the common innovation metrics such as "% of revenue from products released in the last two years" are "lag" indicators after the event, and "lead" indicators are needed
- It is useful to draw flow-chart diagrams of the innovation approval and pipeline processes and ask some searching questions about this - and relate metrics to the stages
Input metrics:
- Number of ideas generated
- Resources allocated to innovation - people and budget
Process metrics:
- Average time from idea approval to implementation
- Number of ideas approved and number implemented
- Stage-gate pass rates
- Value of the innovation pipeline
Output metrics:
- Number of new products or services launched
- Revenue from new products or services
- ROI on innovation spend
- Market Perception
- Number of new customers
1 comment:
In most sectors, customer needs and market requirements are dynamic and a change in company performance cannot be attributed to a single innovation. This would make measuring the effect of an innovation impossible. I would like to get your views on innovation in our corporate blog (mahindrauniverse.com)
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