Number of FTEs (including external) that perform the process group "generate and define new product/service ideas" per $1 billion revenue

This measure calculates the number of full time equivalents (FTEs) (including external) per $1 billion business entity revenue that perform the process group "generate and define new product/service ideas". The Process group "generate and define new product/service ideas" includes [Identifying and describing new product or service thoughts based on organizational objectives/targets.]. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process group "Generate and define new product/service ideas".

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
105463
Total Sample Size:
849 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are FTEs.

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(Number of FTEs (including external) that perform the function "develop and manage products and services" * Percentage of FTEs (including external) that perform the function "develop and manage products and services" allocated to the process group "generate and define new product/service ideas" * 0.01) / (Total business entity revenue * 0.000000001)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

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Cross Industry (7.3.0)

  • 2.2.1 - Perform discovery research (10065)
    • 2.2.1.1 - Identify new technologies (10070)
    • 2.2.1.2 - Develop new technologies (10071)
    • 2.2.1.3 - Assess feasibility of integrating new leading technologies into product/service concepts (10072)
  • 2.2.2 - Generate new product/service concepts (19669)
    • 2.2.2.1 - Gather new product/service ideas and requirements (19986)
    • 2.2.2.2 - Analyze new product/service ideas and requirements (19987)
    • 2.2.2.3 - Evaluate new product/service inputs and requirements (19988)
    • 2.2.2.4 - Formulate new product/service concepts (19989)
    • 2.2.2.5 - Identify potential improvements to existing products and services (10068)
  • 2.2.3 - Define product/service development requirements (19990)
    • 2.2.3.1 - Define product/service requirements (11331)
      • 2.2.3.1.1 - Define basic functional requirements (19991)
      • 2.2.3.1.2 - Derive interoperability requirements for products and services (16808)
      • 2.2.3.1.3 - Derive safety requirements for products and services (16809)
      • 2.2.3.1.4 - Derive security requirements for products and services (16810)
      • 2.2.3.1.5 - Derive regulatory compliance requirements (16811)
      • 2.2.3.1.6 - Derive requirements from industry standards (16812)
      • 2.2.3.1.7 - Develop user experience requirements (19992)
      • 2.2.3.1.8 - Derive ‘services-as-a-product’ offering (16814)
    • 2.2.3.2 - Define post launch support model (16815)
    • 2.2.3.3 - Identify product/service bundling opportunities (17389)