Market orientation metrics for radical innovation projects
| Key performance indicator | Measurement | Description |
|---|---|---|
| Potential of market | 1-5 Likert scale, text description | The potential of the market should be described in terms of attractiveness, growth and, if possible, the size. Latent markets are more difficult to assess, as these are mostly be based on “trends” rather than existing market needs |
| Existing links to markets | Text: contacts, former market penetration | Does the firm have contacts that help in gaining access to markets? Has the firm previously navigated in markets similar to the one pursued? Are there complementary players in the firm’s ecosystem who can be helpful? Gives an understanding of the market uncertainty related to the project, and whether this uncertainty can be embraced through networking |
| Finding new market needs | Text and 1-5 Likert scale : degree of novelty, existing needs or future needs | Are needs already saturated by other products or services? Are we targeting existing or latent needs? The firm has to understand the implications of either entering a market with a substituting solution, or whether new market needs can be created and tapped. Can also include a text scenario description of the use of new business models |
| Deliverance of real benefits to the customer | 1-5 Likert scale, text description | Is it something that can be clearly attributed as delivering a significant value to the customer? The uncertainty related to radical innovation projects is significant; the potential benefits that the customer should receive should be at least equally significant |
| Key performance indicator | Measurement | Description |
|---|---|---|
| Potential of market | 1-5 Likert scale, text description | The potential of the market should be described in terms of attractiveness, growth and, if possible, the size. Latent markets are more difficult to assess, as these are mostly be based on “trends” rather than existing market needs |
| Existing links to markets | Text: contacts, former market penetration | Does the firm have contacts that help in gaining access to markets? Has the firm previously navigated in markets similar to the one pursued? Are there complementary players in the firm’s ecosystem who can be helpful? Gives an understanding of the market uncertainty related to the project, and whether this uncertainty can be embraced through networking |
| Finding new market needs | Text and 1-5 Likert scale : degree of novelty, existing needs or future needs | Are needs already saturated by other products or services? Are we targeting existing or latent needs? The firm has to understand the implications of either entering a market with a substituting solution, or whether new market needs can be created and tapped. Can also include a text scenario description of the use of new business models |
| Deliverance of real benefits to the customer | 1-5 Likert scale, text description | Is it something that can be clearly attributed as delivering a significant value to the customer? The uncertainty related to radical innovation projects is significant; the potential benefits that the customer should receive should be at least equally significant |
Source: Based on literature review and the case studies in this paper