Last year, one of the most popular topics at the annual Open Nation innovation conference was metrics. How do you measure your innovation capabilities? How do you track your results from established programs?
The legacy approach to talent selection involves matching education, length of experience and functional skills to the role. All of this makes sense as a baseline, and for well-established professions. But, we argue, selecting talent for innovation requires a whole new approach. Companies must recognize specific innovation skills that drive business outcomes. Yet today, most lack the tools to do so.
Over recent years we have been tracking how companies identified as leading innovators subsequently perform in terms of growth in shareholder value. Linking innovation efficiency to out-performance against all major indices has proven the relationship that many across industry believe in and hope for: innovation pays. The latest round of analysis has just been completed and shows even greater performance than before.
Everyone knows about ROI, as in “return on investment.” But for evaluating the success of an experiential brand event or marketing campaign, businesses should take an equally close look at ROI, as in “return on innovation.”
While the importance of innovation is crystal clear for many organizations, daily execution usually remains challenging. When renewing products, services or business processes, companies often encounter the same obstacles. But what if companies could learn from each other? Can innovation be streamlined by sharing successes and failures? That’s precisely what the first CREAX innovation roundtable was determined to find out. In collaboration with Oracle, we gathered a diverse group of innovation professionals for a lively debate on how to move from theorizing to getting things done. This is what we learned.
Innovation is so important that most senior executives say that it’s integral to their company’s success. Because companies invest so much in it, getting a return is critical. Poor measurement practices result in bad or incomplete information, wasted resources, and a lower return on innovation investments. InnovationManagemenet asked James Andrew, senior partner of BCG and coauthor of the senior management survey Measuring Innovation 2009 a few questions about the importance of measuring your innovation efforts.