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The Value of Innovation

Book Description

Innovation is the life blood of practically every organization. Innovation drives growth, development, and prosperity for many organizations and geographical areas.  Sometimes, innovation thrives within a certain geographical location or in certain organizations that are known for their innovative approaches. This outstanding new volume will demonstrate how to measure the success of innovation in all types of organizations. 

In the last decade, there have been tremendous investments in creativity and innovations sponsored by companies, cities, states, countries, universities, NGO’s, and even non-profits. With the magnitude of emphasis on creativity and innovation, the sponsors and key stakeholders will demand to know the value of these programs. The Value of Innovation: Measuring the Impact and ROI in Creativity and Innovation Programs will show step-by-step how to measure the impact and the ROI of innovation and creativity programs. The process collects six types of data: reaction, learning, application, impact, ROI, and intangibles. Data are collected analyzed and reported using a systematic, logic model. Conservative standards create results that are both CEO and CFO friendly. This proven process has been used now in 5000 organizations and this new book adapts the method directly to this critical area of innovation, showing examples and case studies.

Table of Contents

  1. Cover
  2. Title page
  3. Copyright page
  4. Preface
  5. Acknowledgements
  6. About the Authors
  7. Chapter 1: The Importance and Challenges of Innovation
    1. Innovation Hype
    2. The Realities of Innovation
    3. Trouble in Paradise: The Misconceptions
    4. Innovation Challenges
    5. Final Thoughts
  8. Chapter 2: Status and Concerns about Innovation Measurement
    1. Innovation: Definition, Models, and Measures
    2. Sources of Innovation
    3. Measurement Shifts
    4. Macro View of Measurement
    5. Micro View of Measurement
    6. Final Thoughts
  9. Chapter 3: The Case for a New System
    1. Innovation: A Cost or an Investment?
    2. The Value of Innovation: A Summary
    3. Types of Data
    4. How Does Your Current System Stack Up?
    5. Using Design Thinking to Deliver and Measure Results
    6. Requirements for the Value of Innovation: A Measurement Process
    7. ROI Measurement Methodology™
    8. Terminology: Projects, Solutions, Participants …
    9. Final Thoughts
  10. Chapter 4: Introducing the ROI Methodology
    1. The ROI Methodology
    2. Types of Data
    3. The Initial Analysis
    4. The ROI Process Model
    5. Operating Standards and Philosophy
    6. Implementing and Sustaining the Process
    7. Benefits of This Approach
  11. Chapter 5: Aligning Innovation Projects to the Organization
    1. Creating Business Alignment
    2. Determining the Potential Payoff
    3. Determining Business Needs
    4. Determining Performance Needs
    5. Determining Learning Needs
    6. Determining Preference Needs
    7. Case Study: Southeast Corridor Bank
    8. Developing Objectives for Innovation Projects
    9. Final Thoughts
  12. Chapter 6: Collecting Data Along Chain of Impact with a Toolbox of Methods
    1. Questionnaires and Surveys
    2. Using Interviews
    3. Using Focus Groups
    4. Measuring with Tests
    5. Measuring with Simulation
    6. Using Observation
    7. Using Action Plans
    8. Monitoring Business Performance Data
    9. Selecting the Appropriate Method for Each Level
    10. Final Thoughts
  13. Chapter 7: Measuring Reaction and Perceived Value
    1. Why Measure Reaction and Perceived Value?
    2. Sources of Data
    3. Areas of Feedback
    4. Data Collection Timing
    5. Data Collection Methods
    6. Using Reaction Data
    7. Final Thoughts
  14. Chapter 8: Measuring Learning
    1. Why Measure Learning and Confidence?
    2. The Challenges and Benefits of Measuring Learning
    3. Measurement Issues
    4. Data Collection Methods
    5. Administrative Issues
    6. Using Learning Data
    7. Final Thoughts
  15. Chapter 9: Measuring Application and Implementation
    1. Why Measure Application and Implementation?
    2. Challenges
    3. Measurement Issues
    4. Data Collection Methods
    5. Barriers to Application
    6. Application Data Use
    7. Final Thoughts
  16. Chapter 10: Measuring Impact
    1. Why Measure Business Impact?
    2. Collecting Effective Impact Measures
    3. Business Performance Data Monitoring
    4. Data Collection Methods
    5. Measuring the Hard to Measure
    6. Final Thoughts
  17. Chapter 11: Isolating the Effects of Innovation
    1. Why the Concern over this Issue?
    2. Preliminary Issues
    3. Isolation Methods
    4. Final Thoughts
  18. Chapter 12: Converting Data to Money
    1. Why Convert Data to Monetary Values?
    2. Standard Monetary Values
    3. When Standard Values are not Available
    4. Technique Selection and Finalizing Value
    5. Final Thoughts
  19. Chapter 13: Addressing Intangibles
    1. Why Intangibles are Important
    2. Measuring and Analyzing Intangibles
    3. Final Thoughts
  20. Chapter 14: Measuring ROI
    1. Why Monitor Costs and Measure ROI?
    2. Fundamental Cost Issues
    3. Specific Costs to Include
    4. The ROI Calculation
    5. Other ROI Measures
    6. Final Thoughts
  21. Chapter 15: Forecasting Value, Including ROI
    1. Why Forecast ROI?
    2. Preproject ROI Forecasting
    3. Forecasting with a Pilot Program
    4. Forecasting with Reaction Data
    5. Forecasting Guidelines
    6. Final Thoughts
  22. Chapter 16: Reporting Results
    1. The Importance of Communicating Results?
    2. Principles of Communicating Results
    3. The Process for Communicating Results
    4. The Need for Communication
    5. The Communication Plan
    6. The Audience for Communications
    7. Information Development: The Impact Study
    8. Media Selection
    9. Delivering the Message
    10. Reactions to Communication
    11. Final Thoughts
  23. Chapter 17: Implementing and Sustaining ROI
    1. Why is this Important?
    2. Implementing the Process: Overcoming Resistance
    3. Review Current Results
    4. Developing Roles and Responsibilities
    5. Establishing Goals and Plans
    6. Revising or Developing Policies and Guidelines
    7. Preparing the Project Team
    8. Initiating ROI Studies
    9. Selecting the Initial Project
    10. Preparing the Sponsors and Management Team
    11. Removing Obstacles
    12. Monitoring Progress
    13. Final Thoughts
  24. Index
  25. References
  26. End User License Agreement