Business Administration

In your quest to encourage innovation and entrepreneurial behavior in the medium sized medical equipment company you founded five years ago, you see the need to develop specific measures of performance against which innovative products or services can be measured once they are developed. Explain how the following financial and non-financial measures will be used to assess and evaluate recent innovations:

Financial Measures

• Return on investment
• Growth in market share
• Profitability

Non-financial Measures

• Employee loyalty and commitment
• Breadth of employee participation
• Employee retention
• Employee willingness to change
• Strategic repositioning
• Competitive capabilities
• Potential creation of further breakthroughs
• Number of potential future innovations