Measuring innovation is an important practice management. If you are a good manager or executive, you want to know if your business is related to innovation. How to innovative your products and employees are to determine their strength in competition. Imagine, if you’re marketing the same product or service over time, if your competition, even new players have been introducing new and innovative to keep, you lose the customer. There are techniques for measuring innovation. For two of the best-known, they are Balanced Scorecard or as a KPI (Key Performance Indicator) and Six Sigma.
The Balanced Scorecard can help you monitor and analyze the four major fields of view of your company in its relationship with innovation, finance, customers, internal processes, and education and growth. The key performance indicators is one of the procedures in the balance score card, using financial indicators and non-financial measures to help evaluate how they will be the achievement of long-term company. During the Six Sigma a more detailed analysis of production, quality by identifying defects and other abnormalities helps evaluate production. Six Sigma is about improving the quality of production by the belief that a better production process concentrated in reducing costs. You can implement Six Sigma in the balanced scorecard.
Fundamentals and new areas of innovation measurement lower than the traditional left. These include the measurement of performance, quality, timing, cost and financial development. Measuring performance means, how your product and service solution, or service may be the need of the market and fair competition. Quality can be measured simply by counting the number of defects in the production and the number of production delays. The program includes improving the lead time, how fast you can deliver the goods or services on the market. Although development costs are related to specific projects that you started. They could include analyzing your measurement of the fluctuations, the percentage of reuse of products, the percentage of new components in production, or the percentage change in the proportion of new specifications for new entrants, the percentage of individual components by compared to the competition, the percentage of lost productivity, and so further.
By using special techniques such as Balanced Scorecard, KPI, or Six Sigma, would you be a better measure of innovation because it has established procedures, standards and measures to make your job easier. Search each chooses what suits your business. There are four processes in the implementation of the Balanced Scorecard: Translating corporate vision into operational objectives, which is more easily identifiable to communicate the vision of the individual in society and between Vision-performance, planning activities together clues, and the last is the feedback. The latter process also means that you learn the information and adapt to your new strategy. The Balanced Scorecard is also the application of strategic management. You can measure data from the IRC, the financial and nonfinancial, and measure Six Sigma to improve production.
