7-2 Report: Short Paper €“ Metrics for Innovation Southern New Hampshire University MBA-580 Innov/Strat High Performance Orgs Overview 09:40:42 GMT -05:00 Measuring organizational creativity and innovation poses significant challenges. There isn€™t a single output that definitively si...
, Measuring organizational creativity and innovation poses significant challenges. There
isn’t a single output that definitively signals the extent of innovation within an organization. To
succeed, innovation and creativity must be nurtured as intrinsic cultural values. In this report I
have been given two companies in which I plan to discuss how business metrics affect
innovation culture.
Business Metrics: Good or Bad?
When looking at specific business metrics, such as number of products, you may
understand the company’s current position in the innovation/creativity race. For example, the
number of active products can surely indicate there is innovation happening especially if there
are new products being introduced regularly. However, the number of active products would not
be able to differentiate between discontinuous and incremental innovations. Another metric is
research and development (R&D) headcount. In the sense of innovation this metric indicates
what resources are generally allocated and where. R&D is depicted by the pure cost cast as an
expense to be able to foster creativity and innovation. A higher R&D headcount should suggest
that there is more commitment to innovation, however, doesn’t showcase efficiency or
effectiveness of the innovation process. As these two are just a few on the list of several business
metrics, monitoring all business metrics can be beneficial. An increase in both these metrics
would be a positive trend in innovation. If the number of products increases, then it’s evident that
there is some innovation in the process. The other metric, R&D headcount would signify whether
innovation is happening. Apart from innovation however, R&D headcount may also be used to
determine whether the company needs to shift its focus elsewhere.
When looking at these metrics, if there is an increase what does that signify? Between the two
discussed number of active products would be the metric that would most likely show whether
09:40:42 GMT -05:00
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