8% of organisations use the percentage of revenue from new products as a lag innovation metric

McKinsey Global Survey Results (2008)

One of the challenges that organisations face is measuring innovation. There are a number of ways to do this, but one common metric is the number of new product launches. This can be a useful metric, but it has its limitations. For one thing, it only measures output, not outcome. In other words, it tells you how many new products have been launched, but not whether they were successful. Additionally, it doesn't take into account the quality of the products or the time and resources that went into developing them. As a result, the number of new product launches is just one potential metric for measuring innovation. Organisations should consider other metrics as well, such as customer satisfaction or market share growth.

Only a small percentage of organisations use the percentage of revenue from new products as a lag innovation metric, according to recent research. This metric can be used to track a company's progress in terms of innovation, as it measures the amount of revenue generated by new products. However, it is only a useful metric if organisations are also tracking other metrics, such as the number of new products launched and the market share of new products. Otherwise, it can be difficult to interpret the data. The percentage of revenue from new products is only one way to measure innovation, but it can be a helpful metric for organisations that are serious about tracking their progress in this area.