Learning and future opportunity metrics for radical innovation projects
| Key performance indicator | Measurement | Description |
|---|---|---|
| Leads to other opportunities | 1-5 Likert scale, text description | Projects that can be used in many different settings are better than projects that can be launched only for single products. Allows for other opportunities to branch out, which mitigates the risk of dead ends |
| Learning per dollar spent | # of opp. explored vis-à-vis $ | Managers of radical innovation projects should consider how feasibility and experimentation studies are carried out and what resources the studies require. Enables firms to understand the best way in which resources are utilized in terms of learning |
| Potential for growth in existing business segments | 1-5 Likert scale, text description | Does the opportunity give an opening for growth or synergy in an existing business segment? Studies have previously indicated that “product and service bundling” with existing solutions increases success rates for radical innovation projects |
| Termination report quality | Text and # of parameters filed, quality of information | This reflects on discontinued projects. Provides a precise description of why the project was shut down. Also explains the parameters that were fulfilled as part of the project, whom to contact, and under what conditions the project could be reactivated |
| Ability to use and grow core competencies | 1-5 Likert scale, text | Is the project related to the core business activities? Is the firm able to benefit from core competencies and resources? Where are the synergies located? Enables increased legitimacy for projects and may increase the likelihood of embedding the radical innovation project in the core of the firm in the future |
| Key performance indicator | Measurement | Description |
|---|---|---|
| Leads to other opportunities | 1-5 Likert scale, text description | Projects that can be used in many different settings are better than projects that can be launched only for single products. Allows for other opportunities to branch out, which mitigates the risk of dead ends |
| Learning per dollar spent | # of opp. explored vis-à-vis $ | Managers of radical innovation projects should consider how feasibility and experimentation studies are carried out and what resources the studies require. Enables firms to understand the best way in which resources are utilized in terms of learning |
| Potential for growth in existing business segments | 1-5 Likert scale, text description | Does the opportunity give an opening for growth or synergy in an existing business segment? Studies have previously indicated that “product and service bundling” with existing solutions increases success rates for radical innovation projects |
| Termination report quality | Text and # of parameters filed, quality of information | This reflects on discontinued projects. Provides a precise description of why the project was shut down. Also explains the parameters that were fulfilled as part of the project, whom to contact, and under what conditions the project could be reactivated |
| Ability to use and grow core competencies | 1-5 Likert scale, text | Is the project related to the core business activities? Is the firm able to benefit from core competencies and resources? Where are the synergies located? Enables increased legitimacy for projects and may increase the likelihood of embedding the radical innovation project in the core of the firm in the future |
Source: Based on literature review and the case studies in this paper