Community Forum – Tell us how your organization assesses progress?
Our organization is moving from being customer-driven to being market-driven and we are looking at how to assess the progress of innovation in these market platforms.
1. How does your organization track effectiveness of (or distinguish between) R&D programs versus effectiveness of Innovation focused programs? (R&D being defined as incremental and Innovation is defined as breakthrough)
- On our portfolio software Planview
- Input is distinguished via Ansoff; output is not differentiated
- Incremental is tracked at the BU-level and is primarily traditional product extensions. Breakthrough is tracked at an Enterprise-level and is aligned with our longer-term growth strategy.
- New sales of a product to more than two customers.
- Risk-reward analysis; time horizons to commercialize/deployment; leverageable knowledge-gain.
- No difference.
- They are separate organizations and each uses different metrics to measure success.
- We treat them the same. We track ROI and number of projects complete per time period (quarter or year).
- Focus and metrics are based on Innovation.
- My organization does not distinguish between the two. Effectiveness of both are tracked via the vitality index.
- We primarily focus on research as the way to achieve breakthrough innovation; we don’t do as much development.
- We track funnel vitality by horizons – incremental, next generation, transformational, as well as new product sales generated from each.
- R&D and Innovation are handled by completely separate organizations. Innovation is evaluated based on the number of new technologies accepted by R&D for further work. R&D is judged by the number of technologies accepted by Market for product lines.
4. How does your organization measure Strategic Alignment of Innovation programs with the business?
Yes – six responses; Comments:
- At time of initiation
- Qualitative self-assessment
- We have a board that evaluates the project proposal against the business priorities, then they choose to fund it or not.
- Specific strategic alignment questions rate all projects on a point scale assessing degree of alignment with defined strategies.
- Alignment is assessed at ideation stage by committee including, Sales, Marketing, R&D, Product Management.
- Focus the organization around a common innovation strategy that is enterprise-wide.
- Is it possible to measure “strategic alignment” at all? Innovation strategies are rather defined as part of the business strategy, thus, they should be aligned.
- Number of projects funded by the business vs corporate innovation and the number of new products transferred from corporate innovation to a business.
- Framing an opportunity with the expected outcomes/surprises; laying out hypothesis and scenarios [good & not good].
- How likely is a business unit to “own” the technology down the road as it gets through TRL 6-7?
- Every innovation program has a business case which is developed with the BU(s). Alignment is validated at teach program stage.
- If innovations are not aligned with strategic vision they will not be pulled by development.
5. Do you track sustainability impact of new initiatives?
Yes – 10 responses; Comments:
- Using a project scorecard
- We have specific projects or platforms that fall under circular economy
- New this year
- Tracked to ensure we meet the company’s sustainability goals
- Sustainability (environmental) impact is embedded in our project portfolio management process.
- Just getting started and as the market trends teach.
No – 4 responses
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