Since we last spoke about metrics in 2009, metrics have remained the critical factor in measuring innovation success. Metrics are used as key performance indicators–how much bang are you getting for your buck? Overall, everyone should assess the percent of sales revenue generated from new products commercialized within the last five years. Other metrics that measure milestone in the innovation process include number of ideas generated, number of ideation sessions, number of patents filed and issued, benckmarking innovation costs and efficiency versus competitors, and product costs versus product margins.
Companies need a structured, repeatable, and sustainable innovation process that is flexible and adaptable to the needs of the market audience.