INNOVATION: INNOVATION ASSESSMENT

Metric ID Metric Name Formula KPI PCF ID

BUSINESS MODEL
2913 Number of new businesses launched in past three reporting 51.0300 / (51.0330a *
periods per $1 billion current reporting period revenue 0.000000001)

2914 Number of new businesses launched in the past three reporting 51.0300 / (51.0380b * 0.0.0
periods per $100 million R&D spend (three reporting periods 0.000000010)
ago)
2924 Customer retention rate 51.0460 0.0.0

2939 Percentage of innovation spend into enhancements to existing 51.0190a 0.0.0

products/processes/business models
2940 Percentage of innovation spend into major extensions to 51.0190b 0.0.0
products/processes/business models
2941 Percentage of innovation spend into new or white space 51.0190c 0.0.0
opportunities (new category of products/processes/business
models)
2942 Percentage of innovation spend into other 51.0190d 0.0.0

INNOVATION ENABLER
2915 e-Commerce fulfillment channel revenue as a percentage of total 51.0350a(i)
annual revenue (current reporting period)

2916 Direct sales force fulfillment channel revenue as a percentage of 51.0350b(i) 0.0.0
total annual revenue (current reporting period)
2917 Indirect fulfillment channels revenue as a percentage of total 51.0350c(i) 0.0.0
annual revenue (current reporting period)
2918 e-Commerce fulfillment channel revenue as a percentage of total 51.0350a(ii) 0.0.0
annual revenue (three reporting periods ago)
2919 Direct sales force fulfillment channel revenue as a percentage of 51.0350b(ii) 0.0.0
total annual revenue (three reporting periods ago)
2920 Indirect fulfillment channels revenue as a percentage of total 51.0350c(ii) 0.0.0
annual revenue (three reporting periods ago)
2931 Percentage business ideas attributed to external sources 51.0050a 0.0.0

2932 Percentage business ideas attributed to internal sources 51.0050b 0.0.0

2933 Percentage of external sourced ideation attributed to 51.0060a 0.0.0

competitors
2934 Percentage of external sourced ideation attributed to suppliers 51.0060b 0.0.0

2935 Percentage of external sourced ideation attributed to partners 51.0060c 0.0.0

2936 Percentage of external sourced ideation attributed to 51.0060d 0.0.0

clients/customers
2937 Percentage of external sourced ideation attributed to consultants 51.0060e 0.0.0

2938 Percentage of external sourced ideation attributed to other 51.0060f 0.0.0

20110427/51 Note: PCF ID = Reference Number in the PCF © 2011 APQC. ALL RIGHTS RESERVED.
INNOVATION: INNOVATION ASSESSMENT

Metric ID Metric Name Formula KPI PCF ID

INNOVATION ENABLER

2943 Percentage of staff tasked with achieving at least one innovation 51.0070 0.0.0
goal

OPERATIONAL INNOVATION
2904 Total R&D cost as a percentage of revenue (current reporting (51.0380a / 51.0330a) *
period) 100.0

2905 Total R&D cost per employee in the business entity (current 51.0380a / 51.0310 0.0.0
reporting period)
2906 Total R&D cost per $1,000 revenue (current reporting period) 51.0380a / (51.0330a * 0.0.0
0.0010)
2907 Total R&D cost as a percentage of revenue (three reporting (51.0380b / 51.0330b) * 0.0.0
periods ago) 100.0
2908 Total R&D cost per $1,000 revenue (three reporting periods ago) 51.0380b / (51.0330b * 0.0.0
0.0010)
2911 Average days in inventory 51.0430 0.0.0

2922 Percentage growth in R&D cost over past three reporting periods ((51.0380a - 51.0380b) / 0.0.0
51.0380b) * 100.0
2923 Percentage growth in EBITDA over past three reporting periods ((51.0410a - 51.0410b) / 0.0.0
51.0410b) * 100.0
2925 Percentage product/service sales orders delivered on time 51.0470a 0.0.0
(current reporting period)
2926 Percentage product/service sales orders delivered on time (three 51.0470b 0.0.0
reporting periods ago)
2927 Fixed assets utilization rate 51.0330a / 51.0420 0.0.0

2928 Compounded annual growth rate in earnings before interest, tax, (((51.0410a /51.0410b) ^ 0.0.0
depreciation and amortization over the past three reporting 0.3333) - 1) * 100.0
periods
2929 Compounded annual growth rate in R&D costs as a percent of (((51.0380a / 51.0380b) ^ 0.0.0
revenue over the past three reporting periods 0.3333) - 1) * 100.0
2979 EBITDA margin (current reporting period) (51.0410a / 51.0330a) * 0.0.0
100.0

PRODUCT/SERVICE INNOVATION
2909 Average time in days to market for new products/services 51.0440

2910 Average time in months to profitability/payback for new 51.0450 0.0.0

products/services
2912 Percentage of current reporting period revenue from new 51.0340 0.0.0
products
2921 Percentage revenue growth over past three reporting periods ((51.0330a - 51.0330b) / 0.0.0
51.0330b) * 100.0

20110427/51 Note: PCF ID = Reference Number in the PCF © 2011 APQC. ALL RIGHTS RESERVED.
INNOVATION: INNOVATION ASSESSMENT

Metric ID Metric Name Formula KPI PCF ID

PRODUCT/SERVICE INNOVATION

2930 Compounded annual growth rate of revenue generated by the (((51.0330a / 51.0330b) ^ 0.0.0
business entity over the past three reporting periods 0.3333) - 1) * 100.0
2980 Revenue per employee (current reporting period) 51.0330a / 51.0310 0.0.0

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20110427/51 Note: PCF ID = Reference Number in the PCF © 2011 APQC. ALL RIGHTS RESERVED.