Metrics for Innovation

Some claim that innovation, by its definition, cannot be managed.

Others counter that this is clearly possible, as long as parameters,

key aspects, or organizational factors are defined,

from which innovation processes can be monitored and evaluated.

Without entering into this debate, we can say that, for organizations,

it is essential to define metrics that help in monitoring the results

associated with the investment of resources of any kind.

In this sense, the analysis of the results derived from the application of innovation practices,

both in project development and at the organizational level,

can contribute to the agile management of innovation,

supporting decision-making with objective information about this application.

This is because innovation is not enough by itself.

It is, in fact, one of the ways for the organization to reach its strategic objectives.

Measure what matters

Metrics for innovation must be tailored to the particular project development environment and also organizational. Since the entire monitoring process involves cost, it needs, at the same time, to create enough value for the project, and for the organization, in a way that it is worth the investment made in measurement and control. This indicates that metrics that are relevant to one organization may not be of interest to others.

For this reason, the process of defining metrics for innovation must be careful and consider, in the first place, the strategic objectives of the project or organization. Then, it is essential to analyse the feasibility of this measurement, realizing whether it is supported by the available organizational culture, structure and resources, so that an efficient measurement of indicators can be implemented, based on relevant, accurate and complete information.

The Projects

When it comes to managing innovation projects, simple metrics can be defined to record and monitor each of the stages of the innovation development process, be it: understanding, exploration or materialization. - Always remembering, however, the non-linear nature of this process -. For each metric, one or more indicators must be assigned, according to the technical feasibility of the project or organization. Once defined, a consolidated dashboard can be implemented, showing the evolution of indicators throughout the project. With the subsequent input of data from subsequent innovation projects, over time, there is a portfolio of innovation projects developed for a more robust analysis of the best practices adopted.

Basic Examples

The Organization

Innovation is perceived as a priority for many organizations, however, managing it effectively is still a challenge for some. When it comes to the management of organizational innovation, the focus of observation must be broadened and multiple perspectives used to define more sophisticated metrics. This is because traditional budget indicators are not suitable for effective innovation management. It is necessary to analyse how it develops in the organization based on four key aspects: strategy, resources, structure and culture. Therefore, it is important to establish an innovation management system, based on metrics that reach these aspects and that, effectively, can bring relevant information for decision making.

Know More

metrics integration

Empathy

In this step, the team learns about the audience for which the project is being developed. Interviews are carried out with users, customers and all other interested parties, in search of perceptions about the problem in question. There are also other activities from which empathy can be developed with the target actors, such as through observation of their activities, chats and social media, or even through action research. At this point, quantity rather than quality is usually more significant to the analysis. In this sense, two metrics can be significant: number of interviews with users and interested parties; number of users engaged.

Definition

At this stage, the team, based on the understanding of who the project is being developed for, converges on the definition of the problem(s) to be solved and its respective challenges. In this sense, two metrics can be applied at this stage: number of questions defined from the empathy activities; number of insights from the issues raised.

What to Watch

Understanding of Needs

O que observar

Ideation

This is the stage of generating ideas from the information raised and the defined problem. Ideas can be generated in a variety of ways, both individually, in pairs (even with a client), and as a team (or even a group of users) with brainstorming rules to help generate more and better ideas. Two metrics are suggested for this step: number of ideas generated and number of hypotheses formulated from the ideas.

Prototyping

After creating a series of ideas, analysing the best ones and coming up with hypotheses, simple prototypes can be created. Early prototypes are made with basic materials, or digitally with applications. The goal is to be able to do something that you can interact with, show people and get feedback. The materialization of an idea, even if in a rudimentary way, can contribute to the identification of details that have not yet been conjectured or perceived. From this, new and better versions of the prototypes can be developed. In this sense, two metrics can be used: number of built prototypes and number of versioned prototypes.

Solution Exploration

Test

With the prototypes built, user tests must be done. You have to see how they get involved with the prototypes or can use it, how they talk about the prototype. During this process, you also learn how users can refer to parts of the prototype or what they call the solution. This is important, as it maintains clear communication between developers and users. Two metrics are therefore suggested: number of prototypes evaluated and number of prototypes converted into designs.

Implementation

At this stage, there is the effective implementation of prototype, tested and refined solutions. Even so, occasional aspects not noticed before, or functional errors, can arise when these solutions start to run in a real, more complex environment. Therefore, some metrics can be applied to monitor the progress of the implemented solution itself as well as guide further developments. They are: number of non-conformities in the solution, number of corrective measures and number of preventive measures.

Solution Materialization