Skip to content

Measuring Innovation 2008 : Squandered Opportunities

Bill Jarrard's picture

Here are a few highlights from the Boston Consulting Group’s report “Measuring Innovation 2008” which was produced in conjunction with Innovation 2008: Is the Tide Turning – See other blog post Click on attachment below to download the full report.

=====

  • For the uninitiated,  Measurement seems an unlikely  ‘must have’ component to innovation.
    For the majority of business, metrics and measurement are the critical element that is missing.
    Companies undermeasure or measure the wrong thing because they think innovation is different to other business processes.
  • Only 43% of companies track innovation as rigorously as they track their core business operations, even though 75% of execs believe that they should.

  • The single most widely tracked component of innovation is profitability – 82%
    Second is idea generation and selection 66%, followed by time to market 65%.


Key recommendations:

  • Recognise and believe that you must measure innovation
  • To succeed you need to focus on OPERATIONAL and CULTURAL aspects.
  • Look at all four components of the innovation-to-cash process:-
  1. Start up costs
  2. Speedto market
  3. Scale
  4. Support Costs

Also, I feel that you must apply Andrew and Sirkin’s Cash Curve model (from Payback: Reaping the rewards of innovation) included in the report, in an business case you put up for a innovation project.

 

What are some other things you got from the report?

AttachmentSize
<p>Measuring_Innovation_Aug_2008.pdf</p>897.33 KB

Post new comment

By submitting this form, you accept the Mollom privacy policy.