PPAI Magazine May 2024

pecky_photograph / Somchai Som / Shutterstock.com Measuring Innovation Success Progress is not always obvious or easily measured, so evaluating your efforts requires a multidimensional approach that goes beyond traditional financial metrics. By CW Karstens INNOVATION IS THE CORNERSTONE of progress in today’s rapidly evolving world. Whether in business, technology or society at large, it drives growth, efficiency and competitiveness. However, its success in any given project is not always straightforward. Forward-thinking initiatives are inherently aimed at delivering outcomes for the future. As a result, traditional metrics like financial returns don’t always capture their impact. There is no onesize-fits-all approach, but it’s worth delving into various ways to measure the success of these sort of projects and attempt to provide a framework for evaluation. Tangible measures of success aren’t easy to come by when innovation is the name of the game, but key performance indicators are as good a place to start as any. KPIs tend to vary depending on the nature of the project and the organization’s objectives. Increased revenue, market share, customer satisfaction or operational efficiency could all be relevant. Below are a few KPIs and how to consider them under these conditions. Adoption Rate An important metric to evaluate is the rate at which an innovation project is embraced, as the adoption rate can bring valuable insight. Tracking the number of users/ customers adopting the new product or service – and the speed at which they do so – can indicate how much value it’s actually providing users. ROI (And Hidden Costs) While the return on investment may not fully capture broader impacts, it remains an important metric. However, it’s essential to consider both short-term and 30 • MAY 2024 • PPAI Voices | Innovation