Why is it so important to measure innovation?
Measuring innovation performance.
Companies measure just about everything that has an impact on the bottom line, yet strangely, they often shy away from measuring innovation. Granted, it is difficult to measure.
What are the eight tracks?
Historical benchmarks are of limited value when a product has no antecedents, and it’s hard to pin down the future value of an idea that exists only as a concept.
Nevertheless, there are ways of measuring innovation performance.
A comprehensive dashboard should track:
Inputs: the investment money and employee time devoted to innovation, along with the number of ideas that are generated internally each month or sourced from customers, suppliers, and other outsiders.
Throughputs: the number and quality of ideas that enter the pipeline after initial screening, the time it takes for those ideas to move from concept to prototype to reality, and the notional value of the innovation pipeline.
Outputs: the number of innovations that reach the market in a given period, the percentage of revenue derived from new products and services, and the marginal gains that are attributable to innovation.
Leadership: the percentage of executive time that gets devoted to mentoring innovation projects and 360-degree survey results that reveal the extent to which executivesare exhibiting pro-innovation behaviours.
Competence: the percentage of employees who have been trained as business innovators, the percentage of employees who have qualified as innovation “black belts,” and changes in the quality of ideas that are being generated across the firm.
Climate: the extent to which the firm’s management processes facilitate or frustrate innovation and the progress that is being made in removing innovationblockages.
Efficiency: changes over time in the ratio of innovation outputs to inputs.
Balance: the mix of different types of innovation (product, service, pricing, distribution, operations, etc.); different risk categories (incremental improvements versus speculative ventures); and different time horizons.
Once you’ve established the metrics and a baseline, you’re in a position to set specific,unit-by-unit innovation goals, and to fine-tune the innovation engine.
Hyperevo with its staff is ready to drive you forward the innovative’s road.
Thanks to a mature experience in the Automotive sector, and not only, for over 20 years.
But we can also help you and your company make a quality jump and define the better R&D, technical, management and business solutions and procedures to reach your innovative goals.
If your company is really serious about building an "innovation engine", Hyperevo is your solution and partner in this challenge.