c6 innov metrics and perf measurement Flashcards
importance of measuring innovation
alignment with goals
resource optimization
risk management
improvement
Ensures innovation initiatives are aligned with business objectives.
alignment with goals
Identifies which projects or processes yield the highest returns.
resource optimization
Helps in recognizing early signs of potential failure.
risk management
Provides insights to refine strategies and drive better results.
improvement
types of innovation metrics
input metrics
output metrics
process metrics
impact metrics
focus on the resources dedicated to innovation
input metrics
examples of input metrics
r&d expenditure
number of employees involved in innovation
training hours for innovation teams
measure the results of innovation activities
output metrics
examples of output metrics
number of new products launched
patent applications filed
revenue generated from new products
track the effectiveness of innovation processes
process metrics
examples of process metrics
time-to-market for new products
idea-to-implementation ratio
percentage of projects completed on schedule
assess the broader outcomes of innovation efforts
impact metrics
examples of impact metrics
market share increase
customer satisfaction scores
sustainability impact
frameworks for innovation management
balanced scorecard
innovation accounting
KPI Dashboards
Incorporates innovation into strategic goals across financial, customer, internal
processes, and learning perspectives.
balanced scorecard
Focuses on tracking metrics during the different phases of innovation (e.g.,
idea validation, scaling).
innovation accounting
Uses key performance indicators (KPIs) to visualize and track innovation
performance.
KPI dashboards
Innovation often leads to intangible outcomes, such as brand reputation or employee morale.
intangibility
challenges in measuring innovation
intangibility
time lag
complexity
customization
The benefits of innovation may not be immediately visible.
time lag
measuring non-linear processes and outcomes can be difficult
complexity
one-size-fits-all metrics may not suit all organizations or industries
customization
best practices for innovation performance measurement
define clear objectives
use a mix of metrics
benchmarking
regular review
engage stakeholders
provide insights into an organization’s innovation performance.
innovation metrics
adapting metics
adapt and adopt
Metrics should reflect what is important for your specific industry or organization
(e.g., government agencies or non-profits might focus less on financial metrics).
context matters
Measure tangible results of innovation, such as patents filed, products
launched, or services improved.
output-based metrics
key innovation metrics
output-based metrics
time-to-market
customer impact metrics
return on innovation investment (roii)
evaluate the efficiency of bringing new ideas to the market
time-to-market
Assess how innovations influence customer satisfaction or acquisition.
customer impact metrics
Gauge the financial return generated by innovation efforts.
return on innovation investment (ROII)
flawed metric
r&d spend as a percentage of revenue
when designing innovation metrics, consider these steps:
define objectives
customize metrics
iterate and test
are essential in tracking the effectiveness of innovation efforts.
metrics
input metrics
the number of ideas in the funnel
the idea acceptance rate
the idea kill rate
impact metrics
revenue from new products
quality of patents
gross margin impact from innovation
