8.3.2 The holistic dimension

Metrics can be applied to all areas of the product development programme and the project:

     Strategy. Is innovation aligned with business objectives, strategy and
        vision?

     Process. Do the innovation processes support successful execution and
        outcomes?

     Resources. Are the desired level of resources being applied to innovation?

     Culture and organisation. To what extent does the culture, climate and
        organisational structure support innovation?

Examples of metrics within the Arthur D. Little framework for analysing the product development programme are shown in Table 8.3.


Table 8.3 Examples of innovation metrics in the product development programme

Lagging Real time Leading Learning Strategy Contribution from new products/services % of growth targets met through innovation Value of portfolio Increase in revenues from new products Process Number of patents per year % milestones on time Forecasted project completion time Reduction in breakeven time Resources R&D spending as % of sales % outsourcing Forecast resource allocation Changing demand for specific capabilities Company culture Client survey feedback Number of ideas logged Innovation climate surveys Change in critical climate dimensions

Think Break Study Fig. 8.3 and Table 8.3. 1. For benchmarking product development programmes, what differences in     the final analysis would you expect from using the metrics in Fig. 8.3     and the lagging metrics in Table 8.3? 2. In what product development situations would it be more useful to use     lagging, real time, leading and learning metrics for product development     programme benchmarking? 3. A number of metrics have been suggested for product development     projects. What do you think would be the more useful metrics for your     company - for improved products, for major changes and for radical     innovations?