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Performance indicators for the front end of innovation

Jyrälä, Arto (2011)

 
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Jyrälä, Arto
2011
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This study tries to answer the question of which performance indicators Wärtsilä Finland Oy should use to measure its Front End of Innovation (FEI) process. The FEI, where new ideas are introduced to the organization‟s knowledge base, is perceived unclear and at times chaotic. The evaluation of ideas and finding the right development path in this phase allows for faster development into commercially utilized innovation. Therefore, using enough resources for the front end evaluation pays off in the long run.

The theoretical framework for the thesis is built on the principles within idea management and the new product and business development process. The FEI is scoped by selected strategic factors in the organization. Based on these factors, the company screens ideas that correspond to the available resources and its future vision.

The used method is the Balanced Critical Factor Index method, which studies the experiences and future expectations of the company‟s employees. The data was collected by means of a survey. The „idea collection method‟ surfaced as the most critical factor, according to the respondents. It is also worth noticing that the amount of work required by the idea evaluation process was found rather ambiguous, which will require the organization more specific instructions regarding the process.
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