Measuring the Innovation Outcomes and Results in the Big Entrepreneurial Ventures
Innovation results are indeed very difficult to measure, as it requires results from the completion of ideas and projects in the innovation pipeline, and even the expansion of innovative capacity at the firm. Most of the entrepreneurial experts have actually got some affinity towards the latter by using the Innovation Sales Rate as one of the measures. Innovation indeed is the process which is best managed to keep the long-term perspectives in mind, which might not be measured in the long time increments, but in the completion of the targeted goals instead.
If one goes through the Brightidea blog section, one will find out that this particular procedure requires separating the innovation process in three implementable stages- identification of goals and exploration activities, the short-term deliverables and the near-term development. The first stage, which is an identification of the goals and exploration activities actually defines the particular course of action and establishes the motivational inspiration for the entire innovation process. It is quintessential to set forth a vision for the entire innovation and hence provide the opportunities to explore all the solutions which enable the innovator to buy in the goal. Once the goal has been identified, all the steps which are needed for finding success of the accomplishments need to be prioritized.
One must even realize that the next two steps are not static and hence must be reviewed and updated in all the stages. As the goals in the second stage are completed, some courses of action in the third stage automatically move into the second stage to provide the basis for a new set of measurable benefits and outcomes. It is the responsibility of the management to assess the performance in all the respective stages and hence determine when the goal has been completed or moved in a different stage altogether.
Most of the write-ups in Brightidea blog section focus on realizing the importance of understanding a clear definition of what actually constitute an innovation, and finding how critical it is to the success of measurement. While defining innovation as people creating new values and capturing values in a new way, one would like to focus on the basic points-
- The past and current innovation performance
- The demonstrated ability to create and even capture the sustainable and profitable value from the innovation.
- The potential of innovation that is being expected within the concern.
- The capacity of the concern for a new innovation program.
- And finally, the activated capacity which would help in realizing the optimum capacity of the innovation potential.
It is even critical to have a balanced group of metrics around all the dimensions of innovation management- the innovation strategy, partnerships, platforms, portfolios, process and systems, and finally the entrepreneurship culture. There are several key performance indicators which have been talked about for measuring innovation performance and there no doubt, it leaves room for a variety of interpretations, with a good measure.