Monitoring the performance of new business ideas
Once you have started to innovate, it is vital to monitor the performance of your new business ideas to find out if they are delivering benefits.
Set specific goals and targets
In most cases, new ideas or innovations come about to address specific needs or issues. As a result, they should either improve or enhance an existing product, process or service, or be entirely new because of the research and development you have undertaken around a new trend or opportunity.
No matter how the idea has come about, it is important to measure how well it is performing once it has been implemented. How you choose to do this will depend on the nature of the innovation and your own organisation.
You may find it useful to benchmark your business against other similar businesses in your industry or sector, in order to try and understand the impact and benefits of your innovation. Benchmarking against rivals could also help you see whether there are any goals and targets your competitors use that could similarly benefit your business.
Always make sure your targets are SMART - specific, measurable, achievable, realistic and time-bound.
Acting on goals and targets
When your goals and targets are met, you should consider additional or improved targets to help get the most out of your idea. When your goals and targets are not met, you should review and solve any specific issues which may be hampering your success, or consider whether your initial targets were unrealistic and should be revised.
You should also examine the longer-term benefits of innovation, as well as the impact it can have in the short term. Some innovations can take time to make a positive impact on your business operations. This is why including innovation as part of your business planning is essential. Having a business plan will help you develop new ideas that meet the strategy and vision for your business.
If your idea starts to fail, or you identify an issue through analysis, consider using a combination of creative and analytical thinking to find a solution, so that innovation itself plays a part in resolving the problem.
- Last updated
- 05 March 2013
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