CPI Innovation Metrics & Performance Measurement Flashcards

What is 'innovation cycle efficiency' in an R&D measurement context?

Answer: The ratio of value delivered to resources consumed per innovation cycle

Innovation cycle efficiency compares outputs (features shipped, revenue generated) against the inputs (time, money, people) consumed in a single innovation cycle.

Which tool visualizes innovation portfolio balance across risk levels and time horizons?

Answer: Portfolio heat map

A portfolio heat map plots projects by risk and horizon, making over-concentration in one quadrant immediately visible to decision-makers.

What does 'revenue from new products' as a KPI specifically measure?

Answer: The share of total revenue attributable to products launched within the past three to five years

This KPI isolates how much of today's revenue comes from recently launched innovations, signaling whether the pipeline is replenishing the core business.

How does Net Innovation Value (NIV) differ from simple ROI in evaluating innovation programs?

Answer: NIV accounts for option value and strategic benefits beyond direct financial returns

NIV incorporates strategic options, learning value, and competitive positioning alongside financial returns, giving a broader picture than simple ROI.

Which innovation health metric monitors whether new ideas are continuously entering the pipeline?

Answer: Idea input rate

Idea input rate tracks how many new concepts enter the pipeline per period, signaling whether the innovation engine is generating sufficient raw material.

A company wants to reduce innovation waste. Which Lean metric is most directly applicable?

Answer: Non-value-added time ratio in the innovation process

The non-value-added time ratio identifies activities that consume resources without advancing the project, allowing teams to eliminate waste systematically.