Innovation is a key for organizations to be successful and even to survive. Given the continuous disruptions, new types of competition and the ballistic speed of changes, the capability to innovate is critical. Every company must engage and invest to bring new products to the market. This is a challenge from many perspective. Unfortunately only a few of the new, innovative products will meet their business objectives.
From a product perspective there are some important metrics. How many new products that are released, how much of the total sales that are delivered by new products and how much the R&D teams are investing in developing radical innovations. Just a few examples on how to measure innovation. From a marketing perspective we don’t see metrics like that.
Very few organizations follow up on how much of the marketing budget is spent on new, innovative products and services. This is a strategic problem. Organizations that don’t have control over the marketing budget, in regards to innovation, are exposed to a huge risk that both the investment in R&D and marketing are wasted. If they don’t allocate enough resources, they are putting the entire business at risk. If they spend to much, there is an obvious risk that the overspending is wasted.
So the marketing organization needs a good platform to know where they spend the budget and how they spend it.
This balance between the spending on disruptive solutions and the traditional products will differ from company to company and from industry to industry. But there is an important characteristic for the successful companies, regardless of the market.
Successful companies are data driven and make their decisions and priorities, based on analysis and facts. They can see from day one if a campaign is successful or not, by comparing with historical data. And to know, based on facts and numbers, how much money and resources are spent on innovative products and solutions.