Measuring innovation a new perspective

Measuring innovation is a complex task, as it encompasses various aspects such as creativity, risk-taking, and value creation. Here's a new perspective on measuring innovation:

Innovation as a Process, Not an Event

Instead of focusing on a single innovation event or product, consider measuring innovation as a continuous process. This perspective recognizes that innovation is an ongoing effort, involving experimentation, iteration, and learning.

Key Performance Indicators (KPIs)

To measure innovation as a process, consider the following KPIs:

  1. Innovation Velocity: Measure the speed at which new ideas are generated, developed, and implemented.
  2. Innovation Quality: Assess the quality of innovations by evaluating their impact, relevance, and effectiveness.
  3. Innovation Diversity: Measure the breadth of innovations across different domains, industries, or markets.
  4. Innovation Collaboration: Track the level of collaboration and knowledge sharing within and outside the organization.
  5. Innovation Learning: Monitor the organization's ability to learn from failures, successes, and external sources.
  6. Innovation ROI: Evaluate the return on investment (ROI) of innovation initiatives, considering both financial and non-financial benefits.
  7. Innovation Culture: Assess the organization's innovation culture, including its openness to change, risk-taking, and experimentation.

Innovation Metrics

To complement these KPIs, consider using metrics such as:

  1. Number of patents filed or granted: A proxy for innovation output.
  2. Number of new products or services launched: A measure of innovation output and market impact.
  3. Customer satisfaction and Net Promoter Score (NPS): Indicators of innovation's impact on customer experience.
  4. Employee engagement and satisfaction: A measure of innovation's impact on employee motivation and job satisfaction.
  5. Return on Research and Development (R&D) investment: A measure of innovation's financial impact.

Innovation Maturity Model

To further refine your innovation measurement approach, consider using an innovation maturity model. This model assesses an organization's innovation capabilities and provides a roadmap for improvement.

Innovation Maturity Levels

  1. Ad-hoc: Innovation is sporadic and unstructured.
  2. Basic: Innovation is occasional and reactive.
  3. Intermediate: Innovation is regular and proactive.
  4. Advanced: Innovation is continuous and strategic.
  5. Leading: Innovation is integrated and transformative.

By adopting this new perspective on measuring innovation, you can gain a more comprehensive understanding of your organization's innovation capabilities and identify areas for improvement.