Innovation KPIs
Purpose
The purpose of these KPIs is to assist Innovation staff and management optimise throughput thereby helping reduce costs, and maximise profit.
They provide pointers at the Innovation performance in the business, both as individuals and contributory components of teams and departments.
KPIs use either a single parameter or a combination of parameters, often generated automatically by 'counters' whereby the output is a comprehensive performance indicator in itself.
These counters can be built into the Innovation tools, the Innovation management systems or programmed individually to suit local requirements.
Scope
The scope of these Key Performance Indicators is limited to activities, as defined by the organisation, to lie inder the relevant business area.
However the data used by and/or collected by the counters and measurement tools could originate from anywhere within - or without - the business.
Each individual KPI is reviewed to assess it's "
fitness for purpose" on a periodic basis as defined by the KPI owner.
This is a temporary message - once each individual 'scope" document is written, it will be replaced within the coding that produced this KPI document.
Definitions
Each KPI is described by the following items:
- KPI ID Number: contains the full name of the KPI.
- Target Value: contains the max or min threshold
- Frequency: describes the type of measurement i.e. daily, weekly, or monthly.
- Description: this item provides short explanation of the KPI.
- Formula: this item contains the formula composed by the counters for the KPI.
- Counters: this item contains counters used for calculation and described how they are triggered.
- Object Class: this item shows from which element the measurement statistical data are taken.
- Tools: this item shows which tool is used to calculate the KPI.
- Trigger: the event that starts the KPI measurement.
- Terminator: the event that stops the KPI measurement.
- Unit Range: this items shows the unit range value of the KPI.
- Review Period: this defines the aging process of the KPI. It helps management ensure it's use is relevant.
- Owner: this item reflects who has the authority to adjust the KPI paramaters and to whom any queries should be addressed concerning the measurements.
- Remark: this item is sometimes added to write notes and additional information.
- Process: the process or processes (or work instruction/procedure) to which this KPI is applicable.
A measurement type can have several sub-counters; therefore the used sub-counters are listed in brackets with following meanings as examples:
- [3]: sub-counter 3 has to be taken.
- [1,2,4]: sub-counters 1, 2 and 4 have to be added.
- [1 - 4, 7 - 10]: sub-counters 1, 2, 3, 4, 7, 8, 9 and 10 have to be added.
- [all]: all sub-counters have to be added.
Not all Definitions apply to every KPI. Where an element has no value in the database, it is not displayed.
Note that when the average of a series of inputs is calculated, this is taken to be the arithmetic MEDIAN.
Measurables
Details
| KPI Inn1 |
Patents For Sale |
| Description |
% Of Patents For Sale |
| Process |
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| KPI Inn2 |
New Product Sales Cannibalisation Ratio |
| Description |
Calculates the reduction in sales of existing products due to new products. |
| Process |
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| KPI Inn3 |
Ideas Development |
| Description |
Number Of Ideas Developed Within Measurement Period. |
| Process |
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| KPI Inn4 |
External Ideas |
| Description |
% Of Ideas From Outside The Organization |
| Process |
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| KPI Inn5 |
Collected & Developed Ideas |
| Description |
Number Of Collected Ideas That Were Developed Further |
| Process |
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| KPI Inn6 |
Collected & Implemented Ideas |
| Description |
Number Of Collected Ideas That Were Implemented |
| Process |
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| KPI Inn7 |
Non-Core Innovation Project Investment |
| Description |
% Of Investment In Non-Core Innovation Projects |
| Process |
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| KPI Inn8 |
Non-Core Innovation Project Funding |
| Description |
Total Funds Invested In Non-Core Innovation Projects |
| Process |
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| KPI Inn9 |
Growth Innovation Senior Management Time Investment |
| Description |
% Of Senior Management Time Invested In Growth Innovation |
| Process |
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| KPI Inn10 |
Patent Application Time (Average) |
| Description |
Average Application Time For Patents |
| Process |
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| KPI Inn11 |
Patent Age (Average) |
| Description |
Average Age Of Patents |
| Process |
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| KPI Inn12 |
R & D Productivity |
| Description |
R & D Productivity Based On Gross Margin |
| Formula |
GM = (Revenue - COGS) / R & D overlays. |
| Process |
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| KPI Inn13 |
R & D Spend |
| Description |
Research and development activities spend as percentage of revenue. |
| Process |
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| KPI Inn14 |
Launched Products & Services Sales |
| Description |
Percentage of sales due to product/services launched in previous period (e.g. the past year) |
| Process |
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| KPI Inn15 |
Time-To-Profitability (Existing Products & Services) |
| Description |
Average Time-To-Profitability For Changes To Existing Products/Services |
| Process |
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| KPI Inn16 |
Time-To-Profitability (New Products & Services) |
| Description |
Average Time-To-Profitability For New Product/Service |
| Process |
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| KPI Inn17 |
Time-To-Market (Existing Products & Services) |
| Description |
The time it takes from the time a product is envisioned or defined until it is on store shelves. |
| Process |
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| KPI Inn18 |
Concepts To Products Ratio |
| Description |
Ratio Of Number Of Concepts To Actual Products |
| Process |
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| KPI Inn19 |
Time-To-Market (New Products & Services) |
| Description |
The time it takes from the time a product is envisioned or defined until it is on store shelves. |
| Process |
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| KPI Inn20 |
Prototyping Speed |
| Description |
Average Prototyping Speed I.E. Time To Create A First Prototype. |
| Process |
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| KPI Inn21 |
Average Number Of Prototypes Per New Product |
| Description |
Average Number Of Prototypes Per New Product |
| Process |
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| KPI Inn22 |
Ideas Funded For Development |
| Description |
% Of Ideas That Are Funded For Development |
| Process |
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| KPI Inn23 |
Ideas Killed |
| Description |
% Of Ideas That Are Killed |
| Process |
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| KPI Inn24 |
New Products & Services Customer Satisfaction |
| Description |
Customer Satisfaction With New Products / Services |
| Process |
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| KPI Inn25 |
New Products & Services New Customers |
| Description |
% Of New Customers From New Products / Services |
| Process |
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| KPI Inn26 |
Patents Rejected |
| Description |
% Of Rejected Patents |
| Process |
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| KPI Inn27 |
Research Idea Conversion Rate |
| Description |
% of ideas submitted by Research that made it to a qualified portfolio Business Case with revenue commitment |
| Process |
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| KPI Inn28 |
Concept To Application Turn Around Time |
| Description |
The Turn Around Time From Concept To Application |
| Process |
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| KPI Inn29 |
Radical Innovation Dedicated Resources |
| Description |
Percentage Of Dedicated Resources (In Fte) For Radical Innovation. |
| Process |
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| KPI Inn30 |
Idea To First Patent Filing Lag |
| Description |
Average Time (E.G. In Days) From Idea To First Patent Filing. |
| Process |
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| KPI Inn31 |
University Assisted R & D Projects |
| Description |
% Of R & D Projects Involving Universities |
| Process |
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| KPI Inn32 |
Research Institute Assisted R & D Projects |
| Description |
% Of R & D Projects Involving Research Institutes |
| Process |
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| KPI Inn33 |
Competitor Assisted R & D Projects |
| Description |
% Of R & D Projects Involving Pre-Competitive Research With Competing Companies |
| Process |
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| KPI Inn34 |
Customer Assisted R & D Projects |
| Description |
% Of R & D Projects Involving Customers |
| Process |
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