Innovation metrics are hard. In fact, casual observers typically assume that innovation, as a “fuzzy” art, can’t be measured at all. This is an unfortunate belief, because it unduly miniaturizes innovation’s crucial role in driving firm-wide value. However measuring innovation is possible – and necessary for success. Because innovation metrics are fraught with peril, we’re asked about innovation metrics weekly. Teams are looking to understand what to measure, what others are measuring, what really matters, and why. Through the years, we’ve learned there are four key types of metrics that all mature innovation programs utilize. To unpack which metrics to use when, view this free slideshare deck today!

1. YES!Innovation can be measured.
Demonstrating Impact and
Scale of Enterprise Innovation

2. 2YES! Innovation can be measured.
Innovation, on the other hand,
seeks to tear down structures
and experiment. Status quo
is unacceptable.” *
The Innovation Paradox
“Operations is about rules, routines
and rational decision-making.
The focus is short-term, and
measured by quarterly results.
* The Four Types of Innovation Metrics Whitepaper

3. 3YES! Innovation can be measured.
The Metrics Challenge
of companies consider innovation
a management priority Financial StrategicProductivity
Yet only few companies make use
of innovation metrics regularly to
prove its effectiveness*
How can we make innovation measurement a management priority?
What metrics should we be measuring in the first place?
* Imaginatik’s The State of Global Innovation 2015 report
36% 19% 12%

4. 4YES! Innovation can be measured.
The Four Types of Innovation Metrics
Activities
Mix
Portfolio
Health
Productivity
Levels
Financial
Returns
INPUTS OUTPUTS
OPERATIONAL
STRATEGIC

5. 5YES! Innovation can be measured.
Measuring Inputs vs. Outputs
Activities
Mix
Portfolio
Health
Productivity
Levels
Financial
Returns
INPUTS OUTPUTS
OPERATIONAL
STRATEGIC
measure the overall
volume of the
innovation pipeline:
Do we have enough
quality ideas that
can bloom into
actionable initiatives?
comprise more
familiar measures,
allowing the
innovation group
to demonstrate or
“prove” its value to
the company.

6. 6YES! Innovation can be measured.
Measuring Inputs vs. Outputs
Activities
Mix
Portfolio
Health
Productivity
Levels
Financial
Returns
INPUTS OUTPUTS
OPERATIONAL
STRATEGIC
The x-axis of the Innovation Metrics array represents a continuum. The goal of innovation metrics is not to focus
on the output end of the scale, but to push a business toward reaching a balance between inputs and outputs.
Mature innovation programs sustain an equilibrium between the two.

7. 7YES! Innovation can be measured.
Managing Operational vs. Strategic
Activities
Mix
Portfolio
Health
Productivity
Levels
Financial
Returns
OPERATIONAL
STRATEGIC
measures examine the discreet
and easily quantifiable activities
and outcomes associated with
innovation.
measures have a longer timeline,
allowing the organization to take a
higher-level view by focusing on the
broader innovation lifecycle.

8. 8YES! Innovation can be measured.
Managing Operational vs. Strategic
Activities
Mix
Portfolio
Health
Productivity
Levels
Financial
Returns
OPERATIONAL
STRATEGIC
Early stage innovation programs, by necessity, start small. Here - operational concerns take precedence. As the
program matures, the balance can shift from the tactical to the strategic.
Each time a new innovation cycle is implemented, it makes the journey along this axis.

9. 9YES! Innovation can be measured.
Innovation Metrics, Stage by Stage

10. 10YES! Innovation can be measured.
Financial Returns
The Path to Early and Ongoing Legitimacy
Nascent innovation programs need to be concerned with winning over skeptics within the broader
organization. Ideally, these early-stage metrics should be adapted from tangible and
data-driven measures already in widespread use within the organization.
cost
savings
process
efficiencies
incremental
revenues
Improvements in the
cost base that can be
partially or completely
tied to the innovation
program
Reductions in overhead
due to innovation’s
activities
Increases in revenue
generated or collected
thanks to initiatives
stemming from the
innovation group
Financial
Returns
Portfolio
Health
Activities
Mix
Productivity
Levels

11. 11YES! Innovation can be measured.
projects
launched
ideation
volume
How many focused,
high-quality ideas have
been captured and
refined?
How many projects are
in active development,
and what is the
conversion rate of
ideas into projects?
How many people are
involved in innovation
efforts, and how
sustained is their
involvement over time?
Productivity Levels
Priming the Pump for a Healthy Pipeline
These metrics track throughput across each stage of the ideas-to-innovation cycle, primarily
as an internal barometer for the health of the program’s balance of activities.
engagement
levels
Financial
Returns
Portfolio
Health
Activities
Mix
Productivity
Levels

12. 12YES! Innovation can be measured.
Portfolio Health
Kicking Innovation Into High Gear
After several years of development and maturation, it’s not uncommon for an innovation program to
reach a plateau. Measuring diversification into a balanced portfolio of short-, mid-, and long-term
innovation bets is vital to breaking through to a higher level of innovation impact.
customers
How are your
customers’ needs
evolving? How do
you anticipate your
customer segments
changing over time?
ecosystem
Which new business
models will be
necessary to capitalize
on shifting or evolving
industry dynamics?
technologies
Which new
technologies are likely
to impact the current
competitive landscape
or create new
marketplaces?
Financial
Returns
Portfolio
Health
Activities
Mix
Productivity
Levels

13. 13YES! Innovation can be measured.
Activities Mix
Securing Your Innovation Program’s Future
An important characteristic of the mature innovation program is its ability to foster a more complete
set of capabilities beyond simply crowdsourcing ideas, including trend scouting, incubation,
co-creation and scale-up. Metrics may vary, but will likely include the following:
volume effectiveness coverage
How many new
trends has the team
uncovered? How many
co-creation partnerships
are in the works?
What percentage of
incubated projects have
moved forward into full
development or
roll-out?
What proportion of
strategic innovation
imperatives are being
actively addressed
by current or planned
projects?
Financial
Returns
Portfolio
Health
Activities
Mix
Productivity
Levels

14. 14YES! Innovation can be measured.
Innovation Metrics in Practice
Innovation metrics aren’t one-size-fits-all. Their implementation
must be calibrated to a particular organization’s circumstances
and objectives.
Shrewd innovation executives periodically update the
innovation KPIs to best match their program’s evolving level of
sophistication and staying power.
14

15. 15YES! Innovation can be measured.
Quantifying Innovation Over Time
The key to implementing and growing a successful innovation program is measuring its activities and outcomes
at each stage of the program’s existence to assess and improve its efficacy.
Piloting Scaling Maturity
New innovation programs
need to prove their worth
to skeptics within the
organization.
As innovation programs
grow, organizations must
understand how to adapt
them to a changing
environment.
To make innovation last, it is
critical to track performance
so the program can be
continuously adjusted for
maximum benefit.
YEAR 1 YEAR 2-4 YEAR 4+

16. 16YES! Innovation can be measured.
Ongoing Innovation
To learn more about Imaginatik’s strategic approach to sustainable innovation through the application
of innovation metrics, download the Four Types of Innovation Metrics white paper here.
DOWNLOAD

17. 17YES! Innovation can be measured.
For 20 years, Imaginatik has been powering innovation for leading organizations around the world.
We integrate our market-leading innovation software platform with enterprise-change consulting to
unleash the innovative potential of our clients.
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www.Imaginatik.com
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About Imaginatik

18. THANK YOU