Community Forum – What metrics are used for your innovation process?

Resource Type
Survey (Community Forum)
Publish Date
Innovation Research Interchange
Innovation Metrics
Associated Event
Assessing the value of Innovation is a necessary and critical aspect of Portfolio Management.  This survey is intended to uncover best practices to characterizing benefits proposed, realized and impediments to doing this in a consistent manner.
1. Other:  Vitality index -% of income from new products
2. Other: Risk adjusted Contribution Margin
4. Other:

  • Intrinsic uncertainty of delivered product features and performance in eyes of customers
  • Globalization requirements & Difficulty predicting market penetration of technology push products
  • Understanding customer need

6. How does your company determine what is the appropriate % of R&D spend to apply to business support activities?

  • Evolutionary approach
  • Random number, honestly…set by CEO not based on need
  • Determined in each BU based on current year budget and 3-5 year growth strategy
  • Quality of the new product pipeline
  • Depends on needs of the business
  • Industry standards
  • Executive discretion
  • No specific process
  • Yearly Budgeting Plan
  • Use a Technology Steering Committee including Senior Executive Team Members to determine prioritization of projects and % of R&D spend to apply to Business Support, Research, and Product Development
  • Defined by business need
  • Driven by portfolio prioritization and optimization
  • We target 90% spend on innovation and 10% spend on support
  • Business Support is first followed by new products
  • SWAG
  • Based on assessment of need – flexible

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