5 Innovation Metrics You Need to Know
When it comes to early stage innovation, we can’t rely on metrics such as ROI or NPV to determine success, particularly given that such metrics favour short term returns whereas disruptive innovation can take years to deliver the kind of returns that large companies are seeking. If you’re evaluating disruptive innovation through a short term lens then disruptive concepts will either not get funded or the plug will be pulled prematurely in the event that they receive some initial funding.
What we want to measure early on in the innovation lifecycle is learnings.
In order to validate that the assumptions underpinning an idea or business model are flawed or valid, we must experiment, learn and iterate relentlessly in order to move closer to product market fit.
The first indication that people actually care about an idea is whether or not they actually click through to a website via say, an advertisement.
Upon people finding out a little bit more about the solution, do they leave their email address, contact the company or sign up to a mailing list?
Do people ultimately pay for a product or service?
Do people come back?
Do people refer friends and family?
Case Study
At Collective Campus, we’ve been working with a global life insurer in this space.
The insurer is interested in building an online
Rather than overcommit and invest millions in design, development, marketing, accounting and legal support before finding out whether people will actually engage, we’re helping them generate the
Based on an evaluation of the portal’s business model we were able to define:
We then performed the following activities to generate the metrics that matter across the different tiers of the funnel.
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The WorkFlow podcast is hosted by Steve Glaveski with a mission to help you unlock your potential to do more great work in far less time, whether you're working as part of a team or flying solo, and to set you up for a richer life.
To help you avoid stepping into these all too common pitfalls, we’ve reflected on our five years as an organization working on corporate innovation programs across the globe, and have prepared 100 DOs and DON’Ts.
