How do you measure the value of innovation? That is a tough question! Asking the definition of ‘value’ becomes a loaded question. It doesn’t matter where scientific discoveries and breakthrough technologies originate—for national prosperity, the important thing is who commercializes them. Innovation involves the development of new products or processes and the know-how that begets them. New products can take the form of high-level building blocks or raw materials.
Measuring the Value of Innovation
Creating value from innovation is a crucial step for your organization. Value, actual or perceived, creates buy-in. If they believe, they will follow! Of course, when launching an innovation initiative, a tangible value will not be realized right away. It takes time, focus and perseverance. Start out with measures that go beyond efficiency gains. It takes vision to strike a spark. Innovation is a fire that burns deep in the heart of an organization. Measurement is crucial to the process. Measure every step of progress. Compare quarter to quarter and benchmark against accepted performance standards. Over time, as you grow in the initiative, results will go from being perceived to tangible. Tangible results will inspire and fan the flame of innovation. The energy created during this innovation process will inspire more creativity and innovation.
Building Value With Innovation
Your innovation project is gaining momentum. You are seeing tangible, measurable results which are producing true value. As momentum builds, always screen and evaluate innovation initiatives. Find, fund and launch initiatives that align squarely with the values and mission of your organization. Give them time to build, strengthen and gain traction. Finding ways to grow and build your business is solely based on innovation. The hidden result will be that the culture of the organization will change. Encourage the idea of intrapreneurship in building and changing an organization. This will create a forward momentum in the organization that is hard to beat. Gain a competitive edge through innovation and creativity.