3 tips to measure innovation
Tip # 1 Measure input
Number of man hours allocated to innovative activities in month x
=Y% Total number of man hours in month x
Money invested in innovative activities in month x
=Y% Total sales of the company in month x
Other methods to measure input Measure the number of ideas generated per time unit, for example per month. Measure the number of hours per time unit that a person spends on trying out new things. Measure the number of hours per person per time unit invested in innovation education, for example watching presentations about innovation on the Internet. Measure the number of people, who tweet about innovation, that a person follows on social media.
Tip # 2 Measure output
Sales from new products / services in year x
=Y% Total sales of the company in year x
Other methods to measure output Measure the number of new products/services launched per time unit, for example per 3 months. Measure costs saved per time unit, for example per month, due to new idea. Measure the return on investment on capital invested in innovative activities. Measure the number of new customers per time unit, for example per 3 months. Measure the change in a companyâ€™s market value per time unit.
Tip # 3 Measure the process
The number of ideas that are implemented
=X% The total number of ideas developed
Other methods to measure the process Measure the time it takes from the day an idea is suggested to the day that a resulting service / product is used by a customer. Measure the number of barriers that a person experiences between the day he/she communicates the idea to the day that the product / service is launched. Measure the number of times that a person with a new idea gets praise until the product / service is first used by a customer.
Some sources http://www.associatedcontent.com/article/2817678/how_to_evaluate_ideas.html?cat=55 http://www.associatedcontent.com/article/2545291/what_are_the_best_metrics_for_mea suring.html?cat=3 http://blog.thinkforachange.com/2011/01/14/measuring-ideas.aspx http://creatingminds.org/tools/tools_selection.htm http://innovateonpurpose.blogspot.com/2011/03/criteria-for-your-idea.html http://www.innovationmanagement.se/2011/10/10/measuring-forinnovation%E2%80%93a-guide-for-innovative-teams/ http://www.realinnovation.com/content/c080811a.asp
3 tips on how to measure innovation: Measure input, measure output, measure process.