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Framework to measure innovation


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How to measure Innovation - a framework approach !!

Published in: Leadership & Management
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Framework to measure innovation

  1. 1. INPUT 1. Strategic Thinking Visualize the growth of the company & industry. Innovation = strategic thinking 2. Portfolio Management Expected metrics vs. actual performance achieved Capital invested vs. return earned (Sales stage) 3. Research Conceptual Model to express our knowledge - Emerging tech, societal change & customer values 4. Ideation Sandbox : magical place - sand and teamwork create limitless possibilities GOALS & REQUIREMENTS RIGHT PEOPLE Explicit Knowledge Tacit Knowledge Patent or Hide Internally PROCESS 1. Insight Find Point of convergence: Technological possibility, Customer understanding & market for actionable opportunities. 2. Targeting 1. Enlarge Existing Pie 2. Create New Pie 3. Sell Pie differently 4. Invent New Pie 3. Innovation Division Prototype > Rapid Development > Transform Idea into POC > Engineering > Lab Testing > Customer Interaction 4. Market Development ROI (Market) Opportunities INNOVATION TYPES: 1. Incremental, 2. Breakthrough 3. New Business Model, 4. New Venture Project Mgmt Skill – High value add Prototyping Speed – Patents Applied Reach Existing / New Customer OUTPUT 1. Sales Build brand and reputation & Customer Satisfaction a. VOC, b. ROI Innovation Purpose: Incremental IMPROVEMENTS to existing products, Create NEW products, Services, Accelerators that Reduces COSTS Framework to measure INNOVATION Stage Objective(s) Output(s) Metric(s) Blue-Ocean Strategy : No one is already competing Red Ocean Strategy : Competitors are getting bloodied While Space Strategy : Market Segments Ignored Noteworthy to Success  Create intense customer focus • Scientist, Patents, Dedicated Research lab • Ethnographic Study  Create & leverage best new technologies • Open (over closed) Innovation • Virtual Research Lab  Create disciplined process • NPD, LSS, DfLSS, TTM  Create culture to embraces risk-taking • Gate at Incubation stage • Cross Functional/Org/Technical/Sale team • Fuzzy front end innovation (FFE) Source: Maurice Biche Soft Metrics Qualitative, Provocative Questions, Think deeply Hard Metrics Quantitative, Amendable, Statistical Analysis