Manage the development of new products and business models and align innovation with your business strategy.
Within our model, there are three types of key performance indicators (or KPIs) each company should be tracking for innovation:
Reporting KPIs are connected to Innovation Practice. These focus on product teams, the ideas they are generating, the experiments they are running and the progress they are making from ideation to scale.
Governance KPIs are connected to Innovation Management. The focus here is on helping the company make informed investment decisions based on evidence and innovation stage.
Global KPIs are connected to Innovation Strategy. The focus here is on helping the company examine the overall performance of their investments in innovation in the context of the larger business.
Activity metrics focus on how busy the company has been with innovation. They measure the level of innovation activity going on (e.g. number of new products launched, number of experiments run, ideas prototyped). In contrast, impact metrics measure the tangible results that are emerging from this innovation activity. Revenue and profits are the ultimate measure of impact.”
How to start with innovation accounting? We start with measuring the following three innovation KPIs from corporate startups.