9. Classification of Innovation Accounting KPIs
based on the purpose they serve
Reporting: measure the progress from ideation through to
product-market fit.
10. Classification of Innovation Accounting KPIs
based on the purpose they serve
Reporting: measure the progress from ideation through to
product-market fit.
Governance: helping company’s board with investment
decisions
11. Classification of Innovation Accounting KPIs
based on the purpose they serve
Reporting: measure the progress from ideation through to
product-market fit.
Governance: helping company’s board with investment
decisions
Global: examine the overall performance of the innovation
department
13. Cost per learning (cost per failure): businesses fail because
they ran out of $$$ before product market fit was found
Innovation Accounting:
Reporting KPIs
Text
14. Cost per learning (cost per failure): businesses fail because
they ran out of $$$ before product market fit was found
Innovation Accounting:
Reporting KPIs
Text
better fail 100 times with $1,000/failure than,1 time with $100,000/failure
fail fast, fail cheap, fail often...but do learn
15. Cost per learning (cost per failure): businesses fail because
they ran out of $$$ before product market fit was found
Innovation Accounting:
Reporting KPIs
Text
17. Experimentation velocity: the speed at which validation
happens is important for the venture to have a competitive
edge in the market place.
Innovation Accounting:
Reporting KPIs
Text
18. Experimentation velocity: the speed at which validation
happens is important for the venture to have a competitive
edge in the market place.
Innovation Accounting:
Reporting KPIs
Text
I have not failed. I've just found 10,000 ways that won't work.
- Thomas.A. Edison
20. Innovation Accounting:
Governance KPIs
Knowledge-to-assumption ratio: number of validated vs.
non-validated assumptions in the business model.
Source: Rita McGrath
21. Innovation Accounting:
Governance KPIs
Knowledge-to-assumption ratio: number of validated vs.
non-validated assumptions in the business model.
The closer to 1 it is, the less risky the business model is.
Source: Rita McGrath
22. Innovation Accounting:
Governance KPIs
Knowledge-to-assumption ratio: number of validated vs.
non-validated assumptions in the business model.
Source: Rita McGrath
24. Innovation Accounting:
Governance KPIs
Barebones NPV: answers the question of whether or not to
continue investing in a particular venture.
Source: Rita McGrath
25. Innovation Accounting:
Governance KPIs
Barebones NPV: answers the question of whether or not to
continue investing in a particular venture.
Source: Rita McGrath
Knowing when to stop doing what you are doing is sometimes more
important to knowing what to do.
29. Innovation Accounting:
Global KPIs
Cohort performance: the innovation department should be
improving with regards to its overall contribution to company
revenues with each incubated cohort.
31. Innovation Accounting:
Global KPIs
Innovation conversion: % of old customers that are
converting to new offerings replacing the old ones (or being
complementary to existing offerings — customers which are
using more than one product/service from the corporation’s
portfolio)