Open Innovation Metrics“What you can’t measure you can’t manage”
This tool is to help you and your partner decide what is important and which metrics or key performance indicators are most important. As open innovation involves innovating with others, you need to measure each factor from two (or more) points of view.
There are two sets of profit metrics, two sets of costs and two markedly different levels of risk. So the first decision to make is how transparent each partner wants to be about sharing these. In fact this is an entirely healthy, albeit rare, conversation as it ensures that objectives and processes are aligned in some detail, avoiding uncomfortable ‘moments of truth’ halfway through the relationship. These conversations should encompass the envisaged business model and IP strategy as well as who shoulders what costs and risks at what points in the relationship.
First we review the open innovation value equation. The objective is to maximise the benefits and minimise the costs for both us and our partner.
Then review the list of benefits and costs and select the top three for both us and our partner. Note that different partners value different things so the list is likely to be different on each side.
Finally write down our top three measurement targets for us and our partner. Be as specific as possible and quantify time/money/resource wherever possible.
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