Number of FTEs for the phase 'generate new product/service ideas' per $1 billion revenue

This measure calculates the number of full-time equivalent (FTE) employees per $1 billion dedicated to the phase ‘generate new product /service ideas,' which involves identifying potential improvements/extensions for existing products/services, researching customer and market needs, proposing and researching new product/service opportunities, and identifying "generate new ideas" performance indicators. It is a Process Efficiency measure that helps companies optimize their "define product/service development requirements" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
101028
Total Sample Size:
509 All Companies
Performers:
25th
-
Median
-
75th
-
Key Performance
Indicator:
No

Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are FTEs.

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((Percentage of FTEs for product development phases in the phase 'generate new product/service ideas' * 0.010) * Number of FTEs for product development phases) / (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 (6.1.1)

  • 2.1.2.1 - Identify potential improvements to existing products and services (10068) - Defining potential enhancements to current products/services in order to take advantage of a shift in market expectations. Identify how the existing line of products/services may be revised--through enhancements to individual solutions or across-the-board renovations--in order to capitalize on present opportunities in the market.
  • 2.1.2.2 - Identify potential new products and services (10069) - Identifying potential value-added solutions. Determine any and all new solutions that can potentially be added to existing products/services in order to best capture value from market opportunities.