Entrepreneurship

Increasing the “Idea” Rate

IDEA

Earlier this month, an article titled “Data from 3.5 Million Employees Shows How Innovation Really Works,” was released by the Harvard Business Review. The article’s authors describe how the same business analytics techniques used to manage a sales and marketing pipeline can also be applied to drive innovation.

By creating a “dashboard” for innovation, similar to what a company would have in place for their financials, a company can track innovation in a similar fashion. The article’s authors state that you can track “how many innovation challenges the companies are running, how many people are suggesting ideas, and how many ideas they suggest.” They can also track how many of those ideas come to fruition.

The authors went on to explain, “The key variable that we identified across all the companies in our analysis is the ideation rate, which we define as the number of ideas approved by management divided by the total number of active users in the system. Higher ideation rates are correlated with growth and net income, most likely because companies with an innovation culture not only generate better ideas, but are organized and managed to act on them.

Click here to read the full article by Harvard Business Review


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