How to Measure Innovation in Your Company: ROI, ROI2, EBITDA, NPV, IRR and More

How to Measure Innovation in Your Company: ROI, ROI2, EBITDA, NPV, IRR and More

Corporate innovation programs often lack measures to control and assess the return on investment. Different indicators are used to consider the profitability of innovation projects, such as EBITDA margin, rate of renewal, ROI or NPV. There is a need to separate the value of the idea portfolio from the cost to incubate and generate those same ideas. The right KPI and indicators must be chosen to evaluate an innovation portfolio. Value should be placed in ideas regardless of their stage, with a distinction between ideas and investment. ROI2 needs to be measured to track the efficiency and quality of the innovation management process.

View

More Innovation Resources:

Learning to Communicate With Difficult Co-Workers

Learn how to communicate with difficult co-workers by changing your mindset, evaluating your own reactions, and approaching the situation in a private and non-confrontational way.

View

Motivating Innovative Behavior

Innovation leaders need to reward both outputs and inputs of their teams, offering intrinsic and extrinsic motivators throughout the year.

View

12 Reasons Why Most Innovation Labs are Failing

Innovation labs are failing to bring innovation into their parent companies due to a variety of factors such as undervaluing ROI and focusing on tech over people.

View