How to Steer Innovation Activities Using KPIs

Innovation metrics are crucial for companies to keep track of their innovation activities and targets, especially with emerging technologies like AI. Vanity metrics such as profitability or return on investment do not provide concrete next steps to act upon, and are not effective in paving a path forward. Instead, actionable metrics that relate input and output factors, and provide concrete indications of whether innovation activities are moving in the right direction, are necessary. The article provides an understanding of key innovation metrics taking strategy, organization, culture, and operation into account, and introduces tools to transform innovation KPIs so they better represent progress towards innovation targets. The article also includes a list of 5 ways to mine data for innovation KPIs.