How to measure Innovation - a framework approach !!

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