Proposal Metrics
A proposal metric is rolled up from the product metrics of all the proposals in Innovation Management.
Revenue - the following metrics aren't configurable and the rollup calculation is the SUM.
Metric Name |
Description |
---|---|
Projected Revenue |
Sum of all projected revenues for a product |
Actual Revenue |
Sum of all actual revenues for a product |
Costs by Type - the following metrics aren't configurable and the rollup calculation from product to proposal is the SUM.
Metric Name |
Description |
---|---|
Projected Cost |
Sum of all projected costs for a product |
Projected Development Material Cost |
Sum of all projected development material costs for a product |
Projected Development Variable Cost |
Sum of all projected development variable costs for a product |
Projected Development Fixed Cost |
Sum of all projected development fixed costs for a product |
Projected Development Labor Cost |
Sum of all projected development labor costs for a product |
Projected Production Material Cost |
Sum of all projected production material costs for a product |
Projected Production Variable Cost |
Sum of all projected production variable costs for a product |
Projected Production Fixed Cost |
Sum of all projected production fixed costs for a product |
Projected Production Labor Cost |
Sum of all projected production labor costs for a product |
Projected Development Cost |
Sum of all projected development costs for a product |
Projected Production Cost |
Sum of all projected production costs for a product |
Actual Cost |
Sum of all actual costs for a product |
Actual Development Material Cost |
Sum of all actual development material costs for a product |
Actual Development Variable Cost |
Sum of all actual development variable costs for a product |
Actual Development Fixed Cost |
Sum of all actual development fixed costs for a product |
Actual Development Labor Cost |
Sum of all actual development labor costs for a product |
Actual Production Material Cost |
Sum of all actual production material costs for a product |
Actual Production Variable Cost |
Sum of all actual production variable costs for a product |
Actual Production Fixed Cost |
Sum of all actual production fixed costs for a product |
Actual Production Labor Cost |
Sum of all actual production labor costs for a product |
Actual Development Cost |
Sum of all actual development costs for a product |
Actual Production Cost |
Sum of all actual production costs for a product |
Resources (Number of heads) by Resource Pool - the following metrics aren't configurable and the rollup calculation is the SUM.
Metric Name |
Description |
---|---|
Projected Resources |
Sum of all projected resources for a product |
Actual Resources |
Sum of all actual resources for a product |
The following metrics aren't configurable and are derived from revenue, cost, and baseline date. You enter the Market Launch date information.
Metric Name |
Description |
---|---|
Projected Margin |
Difference between the Projected Revenue and Projected Cost Product Metric |
Actual Margin |
Difference between the Actual Revenue and Actual Cost |
Net Present Value |
Difference between present value of cash inflows and the present value of cash outflows. Future cash flows are discounted by the discount rate to convert them to present cash flows. |
Internal Rate of Return |
The discount rate that makes the Net Present Value of all cash flows for a product equal to zero. |
2 Year Revenue |
Sum of revenues for first 2 years after product launch. |
3 Year Revenue |
Sum of revenues for first 3 years after product launch. |
5 Year Revenue |
Sum of revenues for first 5 years after product launch. |
Return on Investment |
Ratio of the benefit gain minus cost of the product divided by the cost to develop the product. |
Payback Period |
Period of time required for the return on an investment to repay the sum of the original investment on the product. |
The following scoring metrics are configurable and entered by the user.
Metric Name |
Description |
---|---|
Alignment |
Alignment for proposal on a scale of 1 = Low to 5 = High. Used for manual ranking only. |
Impact |
Impact for proposal on a scale of 1 = Low to 5 = High. Used for manual ranking only. |
Competitive Advantage |
Competitive Advantage for proposal on a scale of 1 = Low to 5 = High. Used for manual ranking only. |
Supply Chain Fit |
Supply Chain Fit for proposal on a scale of 1 = Low to 5 = High. Example metric for manual ranking. |
RnD Know How |
RnD Know How for proposal on a scale of 1 = Low to 5 = High. Example metric for manual ranking. |
Product Strategic Fit |
Scale of 1 = Low to 5 = High. Used for manual ranking only. |
Probability of Commercial Success |
Probability that the product can be sold commercially |
Probability of Technical Success |
Probability that the product can be built successfully |
Risk Subjective |
Overall risk for product on subjective basis, classified as High, Medium and Low. |
Risk Numeric |
Overall risk for product on a scale of 1 for Low to 5 for High |
Market Growth Percentage |
Average year over year market growth percentage for the product |
Market Share Percentage |
Most recent market share in percentage for the product. |
Product Categorization |
Category in which the product is classified |
Calculation of metrics
Metric Name |
Description |
---|---|
Resource Value Index |
Net Present Value divided by Projected Resources for product |
Cost Value Index |
Cost Value Index is Net Present Value for product divided by Projected Costs for product |
Resources productivity index |
Expected Commercial Value divided by Projected Resources for product |
Cost productivity index |
Expected Commercial Value divided by Projected Costs for product |
Business Unit Strength |
Composite metric to measure business unit strength in building and selling the product. |
Market Attractiveness |
A composite metric to measure market share and market growth for a product. |
Expected Commercial Value |
Expected Commercial Value for a product is its Net Present Value factored by its probability of commercial success. |