Over the past few weeks I have written about ten different innovation metrics. While innovation is complex, and there is no single secret to success, the most powerful lever available to the Chief Innovation Officer, however, may be the measure, analyze and act cycle. Innovation thrives on clarity and a good measurement system can generate insight into what is driving results.
The metrics we have been discussing over the past couple of weeks were designed to be either predictive or to measure historical effectiveness of investments in innovation. Today we look at tracking a set of numbers that should help us improve the ability of the organization to predict the financial impact of individual initiatives. The constant and consistent degradation of forecast revenue and margin as a new concept works its way through the development cycle and into market is a common problem.
The total amount of time required to turn an idea into a marketable product varies dramatically – and it should. Some ideas take longer to percolate while others need to simmer some while a market for them matures. Measuring total cycle time is not very meaningful nor helpful for the Chief Innovation Officer.