Question

List input, and output, measures of innovation. How should one deal with so many possible measures?

Answer 1

Innovation metrics plays a major role in ensuring that you do enough of the correct operations to achieve your objectives. They are typically split into two classifications: metrics of input and metrics of output. In other words, “what goes in to your innovation process and what comes out of it”.

Input metrics measure whether you are doing enough of the correct operations to achieve your objectives and whether you are correctly allocating your resources, while production metrics measure whether these activities and resources have had the required effect on your method of development.

We suggest measuring both inputs and outputs when choosing on your innovation metrics as measuring only one of them is bound to produce one-sided outcomes. Also keep in mind that you most probably have to modify the input first if you want to modify your output.

Measuring inputs is a excellent way to gain insight into how your resource allocation or innovation portfolio is aligned with your approach and can also be regarded to cover the process's own metrics: e.g. how many ideas go through a certain stage. However, it is essential to remember that there is no guarantee of output input. Even if you have all the resources you can have in the world, you may never see the results you want if you don't do enough of the right things or if you don't do enough of them.

The other end of the spectrum is yield metrics, a term used to refer to your yields, or "R in ROI." Output metrics, in other words, evaluate the outcomes your investment in innovation has yielded. As such, they show whether your investments are becoming really helpful.

The other end of the spectrum is output metrics, a term used to refer to your yields, or "R in ROI." Output metrics, in other words, evaluate the outcomes your investment in innovation has yielded. As such, they show whether your investments are becoming really helpful.

Overall, organisations are more probable than inputs to depend on outputs. Although outputs are measure-satisfactory, they are typically less actionable as they often do not tell you what was wrong or who was incorrect. Furthermore, modifications in performance metrics only indicate a certain time after the operations have occurred, which can be quite a long time, particularly in the event of disruptive innovation.

The other two components you need to evaluate are those that moderate the connection between your input and output factors (i.e., reinforce or weaken them). One of these factors of moderation is "Process." To have a sustainable attitude to innovation, all mid-to-large organizations need an innovation process. And you need to monitor how efficient it is once you've set up your method. For instance, you should track your process velocity–how long it takes to change from recognizing problems to prototyping and implementing alternatives.

The ultimate moderating variable you need to assess is variables that are "environmental." Culture is a case in point. This will reinforce the connection between your input and output factors if you have a really excellent culture that encourages innovation. In summary, in order to measure innovation efficiently, you need to assess not only outputs, but also inputs, and the two process and environmental factors moderating variables.