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.