Please explain how the measure is used with a specific exampleExtending the idea of NPS (New Product Sales).
Assuming we find a definition for NPS which clear (see my comments on what is new). This KPI (Key Performance) indicator shows how efficient we are based on our NPS.
Here the question lies how to measure efforts for the particular new product (if it was a project than it is easier, however how you are calculating the personal cost, know how etc.). Question lies here how to measure investment on innovation...
The focus of return on innovation investment is not only to determine how well a company is turning its investments in new products or services into additional profit for the company, but also how efficient it is in its R&D spending. The better a company is able to forecast the demand for its new offerings, as well as how efficient it is in allocating resources, the better its return on innovation investment should be.
The value of an investment in innovation can't be measured by the originality of an idea or the net sales it may produce. Return on innovation investment may, in fact, involve many missteps along the way, and the value gained from these activities in terms of knowledge and experience may make it possible to achieve greater ROI further down line.
Source: Return On Innovation Investment https://www.investopedia.com/terms/r/return-on-innovation.asp#ixzz5UrFQ43nX
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