These days, everyone is interested in bringing about an innovation no matter how small or big it is. These innovations are being targeted at new products and opportunities for businesses and common man. But, to determine whether your efforts are paying the right direction can be difficult. To resolve this, you will need a measurement system that would help you in determining whether you have been successful with your innovation or not. Here are some measures of innovation that can help you assess the worth of your innovation.
Look at the sales of your products before the innovation. Look at the gross profits that you would have made in the past. Compare this with the profits that you are making after the innovation. If there is an increase in the profit of your company, then your innovation has been successful. If there is not much increase or it’s the same, then keep a watch on the market sales of your product. Look for possible improvements that you can make in your product to increase the sales.
There are other techniques that are highly recommended the KPI (Key Performance Indicator) and the balance scorecard. When you make use of balance scorecard method, it can help you in assessing four main aspects of your innovation namely: internal process, customer satisfaction, financial aspect and the predicted growth of your innovation. On the other hand Key Performance Indicator is one of the actions of balance scorecard. KPI helps you to measure both financial and non-financial statistics related to your innovation.
Another method is the six-sigma method. This aims at specifically the production aspect and helps you in identifying the possible defects in your innovation, and also the variation in the production. The six-sigma method of measuring innovation is aimed at improving the production quality of the product, which can result in reduction of the overall costs. The six-sigma measurement method can be used as a part of the balance scorecard method.
There are new methods that are being developed to measure innovation. These new methods go a step further than the traditional methods and help in assessing the quality, performance, timing, cost of development and the financial benefits that can result from the innovation. By making use of precise methods of measuring innovation KPI and six-sigma, you can determine the performance and the profits that your innovation would possibly bring to your business. These methods can also help you in improving your innovation in bringing down the cost of production, hence increasing the profits.
Every aspect of an innovation needs to be measured to help you in improving the same. The most important aspects should be the quality and the financial facet. These can help you in further development of your product and how you can reduce on the costs and the variation in the production to get consistent sales. Good management always involves a proper measuring of innovation, so that you can get a superior product and for any future innovation that you intend to do.