Five Principles of Innovation Measurement

Innovation is a managed process, not serendipitous. It is vital to transform novel ideas for achieving business value. Measuring innovation is crucial for making continuous improvement. A well-defined set of innovation performance metrics needs to be considered in areas such as revenue sustainability, customer satisfaction, and knowledge accumulation. There are two types of innovation measurement: measuring innovative thoughts or actions and through innovation drivers. Innovation performance indicators need to focus on measuring quality, quantity, time, cost, revenue growth, profit improvement, margin targets, products variety for stability, turnover, shareholder or owner return, and talent sustainability. To measure and manage innovation effectively, a necessary set of desired attitudes and behaviors should be clearly established, and then performance indicators can be leveraged to promote continuous innovation.