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 aggregate expected commercial value of the innovation pipeline is a forward-looking metric that measures the risk-adjusted contribution a company expects from their current innovation initiatives. It can be used both to track how the value trends over time and can be compared to expectations set in the business plan to determine whether you have a prayer of delivering against those expectations.