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11th International Conference Interdisciplinarity in Engineering, INTER-ENG 2017, 5-6 October
11th International Conference Interdisciplinarity in Engineering,
2017, Tirgu-Mures, Romania INTER-ENG 2017, 5-6 October
2017, Tirgu-Mures, Romania
Measuring innovation using key performance indicators
Measuring
Manufacturing innovation
Engineering using key
Society International performance
Conference indicators
2017, MESIC 2017, 28-30 June
2017, Vigo (Pontevedra),
Geanina Silviana Banu * Spain
a,
Geanina Silviana Banua,*
P P0F
P P0F
a
P Process Innovation Nucleus S.R.L., 289 Calea Bucuresti Street, Mihailesti, Giurgiu, 085200, Romania
P
Keywords: Cost Models; ABC; TDABC; Capacity Management; Idle Capacity; Operational Efficiency
1. Introduction
* Corresponding author. Tel.: +40-724-384-111.
* Corresponding
E-mail address:author. Tel.: +40-724-384-111. geanina.banu@pinucleus.ro
pin.company.office@gmail.com;
The cost
E-mail of idle
address: capacity is a fundamentalgeanina.banu@pinucleus.ro
pin.company.office@gmail.com; information for companies and their management of extreme importance
in modern©production
2351-9789 systems.
2018 The Authors. In general,
Published it isB.V.
by Elsevier defined as unused capacity or production potential and can be measured
in several©under
2351-9789
Peer-review ways: tons of production,
2018responsibility
The Authors. Published
of available
by Elsevier
the scientific B.V.hours
committee of manufacturing,
of the 11th etc. Interdisciplinarity
International Conference The management of the idle capacity
in Engineering.
Peer-review underTel.:
* Paulo Afonso. responsibility
+351 253of the761;
510 scientific committee
fax: +351 253 604of741
the 11th International Conference Interdisciplinarity in Engineering.
E-mail address: psafonso@dps.uminho.pt
• the innovation process comprises of numerous events, various key people, a common context and a defined time-
frame.
• the innovation process is initiated as a result of planning and decision making, but it can also be triggered by
shocks sent by the market manifesting its needs.
• the innovation process should never be viewed as a linear sequential flow of activities.
• failure happens frequently and generates either discontinuance when innovation is rejected or opportunity when
innovation is “reinvented”.
• the innovation process should be opened both to the innovators and the adopters of the innovation.
• an efficient innovation process cannot guarantee the success of innovation but can influence the innovation
success rate.
Innovation requires proper planning of activities, realistic objectives, constant monitoring of unfolding activities
and measuring of results [2], [3]. Considering the intricacy of the innovation process as underlined by the above
characteristics, the aim of the paper is to emphasize the importance of developing meaningful KPIs in order to
measure innovation.
Various methodologies have been created and employed by enterprises for the purpose of developing KPIs.
Nevertheless, a generic methodology should be researched and identified. Such methodology should be easily
employed for the purpose of ensuring that process objectives are met. To this end, the research problem refers to
identifying a generic methodology for developing meaningful KPIs. The results of the research are applied in the
case of an unfolding innovation process.
2. Methodology
A secondary research was conducted in order to identify a generally accepted methodology for developing KPIs.
As a result, a set of KPIs has been established to support the implementation of a research and innovation project,
referred to as NANOAPPARATUS, undertaken by an innovative SME (Small and Medium-sized Enterprises) from
Romania. Moreover, Business Process Modeling was employed in order to facilitate the comprehensive
understanding of the innovation process and to efficiently implement and communicate it.
Establishing a correlation between objectives, expected results and KPIs represents an important strategy tool
when planning the efficient management of a business process, especially in the case of the innovation process
representing a high-risk process. Developing KPIs should be undertaken as a systematic process based on revising
and in-depth analysis. This applies to research and innovation processes regardless of the nature of research.
Scientific and technological advancement requires the guidance of high performance innovation management. This
is also the case of the publicly funded NANOAPPARATUS research and innovation project implemented by Process
Innovation Nucleus S.R.L., the aforementioned innovative SME from Romania.
With input from the innovation consultant having the role of supporting the efficient implementation of
NANOAPPARATUS innovation process, the following methodology for developing KPIs was identified as being
comprehensive and largely employed by enterprises, having the main steps bellow [4], [5], [6]:
The referred methodology for developing KPIs was adapted to meet the specific of NANOAPPARATUS project
and modeled (Fig. 1) using the standard modeling language Business Process Model Notation 2.0. Furthermore, Fig.
1 depicts the methodology elements performed before and after starting the implementation phase of
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Geanina Silviana Banu / Procedia Manufacturing 00 (2018) 913–918 915
NANOAPPARATUS, elements which were analyzed and/or defined and systematized according to the referred
methodology.
Fig. 1. Methodology for developing KPIs to measure the NANOAPPARATUS project results. Adapted from [4]. [5], [6].
In order to develop the NANOAPPARATUS project KPIs, a comprehensive correlation between project
objectives, activities and results was established allowing for identifying measures to support achieving the
objectives. The following requirements were considered when developing the NANOAPPARATUS project KPIs:
• The KPIs should comply with the particular characteristics of NANOAPPARATUS innovation process;
• The KPIs should rely on clearly identified and rated measures;
• The KPIs should support implementing project activities and achieving project objectives;
• The KPIs should reflect only available data;
• The KPIs should allow for reevaluation and further improvement;
• The KPIs should impact also the results of the organization’s activities and not only those of project activities.
Table 1 presents three examples of KPIs developed to measure the results of the experimental development phase
of NANOAPPARATUS.
3. Performing the Granted European Increase innovation The use of external channels of
successful market patent for method for success rate by expertise, such as external suppliers
uptake of the new producing identifying as many with expertise in areas of the project.
process for producing nanopowders; Patent external channels as The organization’s capacity to
nanopowders in 24 validation in at least possible for identify external expertise is
months from signing three jurisdictions in accessing expertise measured by:
the financing Europe (e.g. in critical areas of I. The number of minimum
agreement Germany and Great the project requirements for selecting
Britain, including
Developing high the innovation
quality nanopowders Romania); New consultants. The
for automotive industry patent application following minimum 3
filed for apparatus
and other industries criteria are recommended:
for producing
Obtaining a patent for nanopowders which - Experience in the field
method for producing is to be developed as of innovation
nanopwders; Direct a result of the (experienced
and indirect project. personnel and similar
exploitation of method experience);
for producing New “Knowledge
management system” - Suppliers ‘capacity to
nanopowders once the
implemented within develop innovations
European patent is (number of
granted; filing for a the organization as a
result of the project. successfully
new patent application
developed innovative
as a result of Technical ideas within last five
experimental specifications years – minimum 1);
development elaborated for the
developed - The price –
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Geanina Silviana Banu / Procedia Manufacturing 00 (2018) 913–918 917
As NANOAPPARATUS will unfold and generate measurable values, thresholds can also be defined. Considering
that the case study NANOAPPARATUS is a new process, measurable values will continue to change, thus creating
comparators for the developed KPIs. In order to define thresholds and to meet process targets, it is very important to
register all values and to keep record of all changes taking place as innovation process unfolds.
When implementing the aforementioned methodology for developing KPIs, the need arose for using a common
language of the NANOAPPARATUS innovation process. As such, the standard language Business Process Model
and Notation (BPMN) was employed [7]. It allowed for integrating all process data, human and financial resources
and basic time elements to be unitarily represented, processed and communicated to process users and stakeholders.
Business Process Modeling with the help of BPMN is possible by employing specific modeling instruments. For the
purpose of this paper Bizagi Modeler freeware instrument was employed. Other modeling programs are possible for
same purpose.
Fig. 2 depicts a sub-process of the NANOAPPARATUS innovation process comprising the innovation activities
to support R&D. The referred sub-process is shown as an example of how to model a flow of activities into a
dynamic sequence allowing for continuous process evaluation and optimization.
The entire sequence of activities specific to NANOAPPARATUS innovation process was modeled using BPMN
and various “what if” scenarios were created and compared based on criteria pertaining time and resources. As such,
process bottlenecks were identified allowing focusing efforts on developing process KPIs.
4. Conclusions
A generic methodology for developing meaningful KPIs was identified. Furthermore, said methodology is linked
with the use of Business Process Modeling in order to ensure that a process can be handled as standard process by
all its users. Present research supports the use of Business Process Modeling for the management and automation of
business processes, allowing for real time process handling and quick access to all process data.
The methodology for developing KPIs is applied in the case of an unfolding innovation process with the purpose
of optimizing it by assigning measures to systematically achieve process objectives. Further focusing on step by step
measuring the process performance level should allow for real time reevaluation of ongoing innovation activities
and related results.
Acknowledgements
This work is disseminating results of the project “Prototype for verifying the practical potential of an innovative
nanotechnology and production line /Prototip pentru validare nanotehnologie inovatoare si linie de productie”,
having SMIS 104269 and Financial Agreement 71/08.09.2016. The project is co-funded by the European Regional
Development Fund through the Competitiveness Operational Programme 2014-2020.
References
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