Number of new businesses launched over the past three reporting periods per $100 million R&D spend (three reporting periods prior)

This measure calculates the number of new businesses launched by a business entity over the past three reporting periods (i.e. past three years) per $100 million R&D spend. "New business" includes new ways of generating revenue and profits (e.g., moving from physical sale of music to digital distribution, moving from products to services) or new ways of operating within a business' value networks (e.g., outsourcing, alliances, go to market). This measure is part of a set of Process Efficiency measures that help companies optimize their "develop vision and strategy" process by minimizing waste and refining resource consumption.

Benchmark Data

Lock

Sorry! Not all users have access to all of our resources.

Want to unlock access to all of our resources?

Learn about Membership Arrow with stem
Measure Category:
Process Efficiency
Measure ID:
101339
Total Sample Size:
498 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
Yes
Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are new businesses.

Back to Top
Number of new businesses/services launched over the past three years / (Research and development (R&D) costs (three reporting periods prior) * 0.000000010)

Key Terms

Back to Top

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.

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

Back to Top

Cross Industry (7.4)

  • 1.1 - Define the business concept and long-term vision (17040)
    • 1.1.1 - Assess the external environment (10017)
      • 1.1.1.1 - Identify competitors (19945)
      • 1.1.1.2 - Analyze and evaluate competition (10021)
      • 1.1.1.3 - Identify potential product or service alternatives (21421)
      • 1.1.1.4 - Identify economic trends (10022)
      • 1.1.1.5 - Identify political and regulatory factors (10023)
      • 1.1.1.6 - Identify environmental factors (10027)
      • 1.1.1.7 - Identify social and cultural changes (10026)
      • 1.1.1.8 - Assess new technologies (10024)
      • 1.1.1.9 - Analyze demographics (10025)
      • 1.1.1.10 - Evaluate intellectual property (16790)
    • 1.1.2 - Survey market and determine customer needs and wants (10018)
      • 1.1.2.1 - Conduct qualitative/quantitative research and assessments (10028)
      • 1.1.2.2 - Capture customer needs and wants (19946)
      • 1.1.2.3 - Assess customer needs and wants (19947)
    • 1.1.3 - Assess the internal environment (10019)
      • 1.1.3.1 - Analyze organizational characteristics (10030)
      • 1.1.3.2 - Analyze internal operations (19948)
      • 1.1.3.3 - Create baselines for current processes (10031)
      • 1.1.3.4 - Analyze systems and technology (10032)
      • 1.1.3.5 - Analyze financial health (10033)
      • 1.1.3.6 - Identify core competencies (10034)
    • 1.1.4 - Establish strategic vision (10020)
      • 1.1.4.1 - Define the strategic vision (19949)
      • 1.1.4.2 - Align stakeholders around strategic vision (10035)
      • 1.1.4.3 - Communicate strategic vision to stakeholders (10036)
    • 1.1.5 - Conduct organization restructuring opportunities (16792)
      • 1.1.5.1 - Identify restructuring opportunities (16793)
      • 1.1.5.2 - Perform due-diligence (16794)
      • 1.1.5.3 - Analyze deal options (16795)
        • 1.1.5.3.1 - Evaluate acquisition options (16796)
        • 1.1.5.3.2 - Evaluate merger options (16797)
        • 1.1.5.3.3 - Evaluate de-merger options (16798)
        • 1.1.5.3.4 - Evaluate divesture options (16799)
  • 1.2 - Develop business strategy (10015)
    • 1.2.1 - Develop overall mission statement (10037)
      • 1.2.1.1 - Define current business (10044)
      • 1.2.1.2 - Formulate mission (10045)
      • 1.2.1.3 - Communicate mission (10046)
    • 1.2.2 - Define and evaluate strategic options to achieve the mission (10038)
      • 1.2.2.1 - Define strategic options (10047)
        • 1.2.2.1.1 - Select partnerships and relationships to support the extended enterprise (18083)
      • 1.2.2.2 - Assess and analyze impact of each option (10048)
        • 1.2.2.2.1 - Identify implications for key operating model business elements that require change (13289)
        • 1.2.2.2.2 - Identify implications for key technology aspects (13290)
      • 1.2.2.3 - Evaluate B2B options (21606) - Evaluating future business to business opportunities against past and current approaches and performance. Gather insights into what competitors and other similar organizations are doing and the needs, goals, and expectations of stakeholders and partners to understand potential future impact.
      • 1.2.2.4 - Evaluate B2C options (21607) - Evaluating future business to customer opportunities against past and current approaches and performance. Gather insights into what competitors and other similar organizations are doing and the needs, goals, and expectations of customers and partners to understand potential future impact.
      • 1.2.2.5 - Evaluate partner/alliance options (21608) - Evaluating partnership and alliance opportunities to deliver products/services. Understand existing product and market models in use across the markets you serve, evolving trends, and the cost/benefit of potential new/updated partnership/alliance options.
      • 1.2.2.6 - Evaluate IP acquisition options (21609) - Evaluating intellectual property acquisition options available to scale, modernize, and/or extend product/service reach. Understand the cost, risk, timing and lifecycle value of candidate acquisitions.
      • 1.2.2.7 - Evaluate innovation options (21610) - Evaluating innovation options to advance technology, products/services, and/or operational performance.
      • 1.2.2.8 - Evaluate sustainability options (21611) - Evaluating sustainability requirements, stakeholder expectations, and value proposition for options. Understand the potential activities and changes across environmental, social, and governance, the effort required, cost to implement, and benefits gained. The analysis should consider sustainable product/service lifecycles, operations, infrastructure, performance, and workforce.
      • 1.2.2.9 - Evaluate global support options (21612) - Evaluating options for global support services and functions. This should include structure, scale, adaptability to change, and alternative delivery models to balance cost, performance, and customer value.
      • 1.2.2.10 - Evaluate shared services options (21613) - Evaluating options for shared services and support functions. This should include structure, scale, adaptability to change, and alternative delivery models to balance cost, performance, and operational efficiencies.
      • 1.2.2.11 - Evaluate lean/continuous improvement options (21614) - Evaluating options to enhance and optimize processes and functional areas. Understand alternatives to strengthen business capabilities, enhance process efficiencies, and advance performance standards.
    • 1.2.3 - Set/Develop long-term enterprise strategy (10039) - Developing a strategy for the achievement of business goals over the distant future. Adopt one of the strategic options for realizing its mission over the long term. Enlist senior management executives, comprising strategy and/or business unit personnel.
      • 1.2.3.1 - Develop partner/alliance strategy (16803) - Defining direction and plan objectives for partnering with other companies to deliver product/services. Focus on creating a vision and strategic objectives and culminate in creating measures for the strategic alliance or partnership.
      • 1.2.3.2 - Develop sustainability strategy (14189) - Formulating strategic options that create opportunities for the sustenance and prosperity of the business in the long run. Go beyond business longevity to consider alternate strategies that allow the organizations preservation of vitality over time. Earmark resources and target processes, the former of which are dedicated to the absorption of sustainable practices in the latter.
      • 1.2.3.3 - Develop merger/demerger/acquisition/exit strategy (16805)
      • 1.2.3.4 - Develop innovation strategy (19952) - Developing a plan and vision to encourage advancements in technology or product/services. Create a roadmap for changing or innovating the business model to make business operations more competitive. Set up new R&D services for changing or bringing new value propositions, services, production processes, and invention of technology not previously used by competitors etc.
      • 1.2.3.5 - Develop global support strategy (19950) - Developing a plan to deploy support services and support functions throughout the organization globally. Arrange the organizations functional support areas to create efficiencies of scale in the delivery of support services, globally.
      • 1.2.3.6 - Develop shared services strategy (19951) - Charting a plan to leverage internal services and support functions throughout the organization. Delineate a framework of parameters and criteria to selectively filter service areas for inclusion among the organizations common resources. Arrange the organizations functional areas to create efficiencies of scale in the delivery of internal services.
      • 1.2.3.7 - Develop lean/continuous improvement strategy (14197) - Developing strategies for the optimization of processes and the improvement of functional areas in order to improve the bottom line. Create a road map of decision choices that would allow the organization to continuously enhance process efficiencies and advance performance standards.
    • 1.2.4 - Coordinate and align cross-functional and process strategies (10040)
    • 1.2.5 - Create organizational design (10041)
      • 1.2.5.1 - Evaluate breadth and depth of organizational structure (10049)
      • 1.2.5.2 - Perform job-specific roles mapping and value-added analyses (10050)
      • 1.2.5.3 - Develop role activity diagrams to assess hand-off activity (10051)
      • 1.2.5.4 - Perform organization redesign workshops (10052)
      • 1.2.5.5 - Design the relationships between organizational units (10053)
      • 1.2.5.6 - Develop role analysis and activity diagrams for key processes (10054)
      • 1.2.5.7 - Assess organizational implication of feasible alternatives (10055)
      • 1.2.5.8 - Migrate to new organization (10056)
    • 1.2.6 - Develop and set organizational objectives (10042)
      • 1.2.6.1 - Identify organizational objectives (19953)
      • 1.2.6.2 - Establish baseline metrics (19954)
      • 1.2.6.3 - Monitor performance against objective (19955)
    • 1.2.7 - Formulate business unit strategies (10043)
      • 1.2.7.1 - Analyze business unit strategies (19956)
      • 1.2.7.2 - Identify core competency for each business unit (19957)
      • 1.2.7.3 - Refine business unit strategies in support of organizational strategy (19958)
    • 1.2.8 - Develop customer experience strategy (19959)
      • 1.2.8.1 - Assess customer experience (19960)
        • 1.2.8.1.1 - Identify and review customer touchpoints (19961)
        • 1.2.8.1.2 - Assess customer experience across touchpoints (19962)
        • 1.2.8.1.3 - Perform root cause analysis of problematic customer experiences (19963)
      • 1.2.8.2 - Design customer experience (19964)
        • 1.2.8.2.1 - Define and manage personas (16612)
        • 1.2.8.2.2 - Create customer journey maps (19965)
        • 1.2.8.2.3 - Define single view of the customer for the organization (19966)
        • 1.2.8.2.4 - Define a vision for the customer experience (19967)
        • 1.2.8.2.5 - Validate with customers (19968)
        • 1.2.8.2.6 - Align experience with brand values and business strategies (19969)
        • 1.2.8.2.7 - Develop content strategy (19970)
      • 1.2.8.3 - Design customer experience support structure (19971)
        • 1.2.8.3.1 - Identify required capabilities (19972)
        • 1.2.8.3.2 - Identify impact on functional processes (19973)
      • 1.2.8.4 - Develop customer experience roadmap to develop and implement defined capabilities (19974)
    • 1.2.9 - Communicate strategies internally and externally (18916)
  • 1.3 - Develop and measure strategic initiatives (10016)
    • 1.3.1 - Develop strategic initiatives (10057)
      • 1.3.1.1 - Identify strategic priorities (19975)
      • 1.3.1.2 - Develop strategic initiatives based on business/customer value (19976)
      • 1.3.1.3 - Review with stakeholders (19977)
    • 1.3.2 - Evaluate strategic initiatives (10058)
      • 1.3.2.1 - Determine business value for each strategic priority (19978)
      • 1.3.2.2 - Determine the customer value for each strategic priority (19979)
    • 1.3.3 - Select strategic initiatives (10059)
      • 1.3.3.1 - Prioritize strategic initiatives (19980)
      • 1.3.3.2 - Communicate strategic initiatives to business units and stakeholders (19981)
    • 1.3.4 - Establish high-level measures (10060)
      • 1.3.4.1 - Identify business value drivers (19982)
      • 1.3.4.2 - Establish baselines for business value drivers (19983)
      • 1.3.4.3 - Monitor performance against baselines (19984)
    • 1.3.5 - Execute strategic initiatives (19507)
    • 1.3.6 - Review execution of strategic initiatives (21422)
    • 1.3.7 - Refine strategic initiatives and project plans as needed (21423)
  • 1.4 - Develop and maintain business models (20944)
    • 1.4.1 - Develop business models (20945)
      • 1.4.1.1 - Assemble business model information (20946)
      • 1.4.1.2 - Secure appropriate approvals (20947)
      • 1.4.1.3 - Identify integration points with existing models (20948)
      • 1.4.1.4 - Adopt the business model (20949)
    • 1.4.2 - Maintain business models (20950)
      • 1.4.2.1 - Establish business model maintenance parameters (20951)
      • 1.4.2.2 - Accept business model feedback parameters (20952)
      • 1.4.2.3 - Prioritize and manage incoming feedback (20953)
      • 1.4.2.4 - Update existing models (20954)
    • 1.4.3 - Establish business model governance (20955)