3 tips to measure

innovation

Tip # 1Measure input

Number of man hours allocatedto innovative activities in month x

Total number of man hours in month x

= Y %

Money invested in innovative activities in month x

Total sales of the company in month x

= Y %

� Measure the number of ideas generated per time unit, for example per month.

� Measure the number of hours per time unit that a personspends on trying out new things .

� Measure the number of hours per person per time unit invested in innovation education , for examplewatching presentations about innovation on the Internet.

� Measure the number of people, who tweet about innovation,that a person follows on social media.

Other methods to measure input

Tip # 2Measure output

Sales from new products / services in year x

Total sales of the company in year x

= Y %

� Measure the number of new products/serviceslaunched 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 capitalinvested in innovative activities.

� Measure the number of new customers per time unit, for example per 3 months.

� Measure the change in a company’s market valueper time unit.

Other methods to measure output

Tip # 3Measure

the process

The number of ideas that are implemented

The total number of ideas developed= X %

� Measure the time it takes from the day an idea is suggested to the day that a resulting service / productis used by a customer.

� Measure the number of barriers that a personexperiences between the day he/she communicatesthe 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 / serviceis first used by a customer.

Other methods to measure the process

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_measuring.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-for-innovation%E2%80%93a-guide-for-innovative-teams/

http://www.realinnovation.com/content/c080811a.asp