Return on innovation investment: The definitive guide

Investing in innovation is crucial for an organization's survival, but it also comes with risks. Calculating the return on innovation investment (ROI) can help ensure that every penny is worth it. ROI is a measure of performance used to assess the value, efficacy, and benefits of investments. It is calculated by putting profits and expenditures side by side. However, calculating ROI at an enterprise level is difficult. Organizations need to think about the areas and processes they want to include in their innovation efforts and establish collaboration between innovation and risk management. Factors to consider in achieving higher ROI include determining objectives, specifying roles and accountabilities, and managing innovation risks. Improving ROI involves aligning innovation and business strategies, using an innovation portfolio management software, providing innovation teams with the necessary tools and resources, setting performance metrics, and identifying possible issues from start to end.