Comments on: Podcast: Measuring Innovation Impact

By: Phil McKinney

Phil McKinney — Wed, 04 Apr 2007 07:20:20 +0000

Jan …
If you mean by the ’selection process’ how ideas get down selected from the 20 ideas down to 1 or 2 that get launched – this is based on my history and validated by the PDMA annual study. What you will find in “new” teams/programs that don’t have a history/experience in this space is that more ideas are left in the funnel. They find it hard to kill off ideas.
Phil

By: Jan Blomberg

Jan Blomberg — Tue, 03 Apr 2007 11:05:45 +0000

Hi Phil,
About “Managing The Innovation Funnel”
How do you benchmark the selection process?
Is it based on competing teams/managers, track record or something else?
Regards,
Jan

By: Phil McKinney

Phil McKinney — Mon, 02 Apr 2007 03:48:31 +0000

Carter …
The key is to have a good baseline on what the gross margin (GM) contribution is from your current portfolio.
With all things being equal, the assumption is that innovations leads to a “better mousetrap” which in turn leads to a customer willing to pay you a “margin premium” in return for that “better mousetrap”.
If you’ve recently been focused on narrowing the innovation gap by entering new product areas, etc — then you will need go back further in the financial history to establish the baseline.
One report/study that will give some of the background on the R&D/GM linkage is:
http://www.boozallen.com/media/file/151786.pdf
I hope this helps ….
Phil

By: Carter

Carter — Mon, 02 Apr 2007 03:18:21 +0000

Hi Phil, Great podcast and measurement is always an interesting topic.
How does one isolate innovation’s contribution to gross margin improvement? After all, there are many factors that impact gross margin.
A related question is how does one credibly communicate to a skeptical management that this particular gross margin improvement is truly tied to R&D?

By: markmke

markmke — Sat, 24 Mar 2007 11:01:41 +0000

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