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

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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.

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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

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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

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Cross Industry (7.3.1)

  • 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 substitutions (21421)
      • 1.1.1.4 - Identify economic trends (10022)
      • 1.1.1.5 - Identify political and regulatory issues (10023)
      • 1.1.1.6 - Assess new technology innovations (10024)
      • 1.1.1.7 - Analyze demographics (10025)
      • 1.1.1.8 - Identify social and cultural changes (10026)
      • 1.1.1.9 - Identify ecological concerns (10027)
      • 1.1.1.10 - Identify intellectual property concerns (16790)
      • 1.1.1.11 - Evaluate IP acquisition options (16791)
    • 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 - Develop B2B strategy (16800)
        • 1.2.2.3.1 - Develop service as a product strategy (16801)
      • 1.2.2.4 - Develop B2C strategy (16802)
      • 1.2.2.5 - Develop partner/alliance strategy (16803)
      • 1.2.2.6 - Develop merger/demerger/acquisition/exit strategy (16805)
      • 1.2.2.7 - Develop innovation strategy (16806)
      • 1.2.2.8 - Develop sustainability strategy (14189)
      • 1.2.2.9 - Develop global support strategy (19950)
      • 1.2.2.10 - Develop shared services strategy (19951)
      • 1.2.2.11 - Develop lean/continuous improvement strategy (14197)
      • 1.2.2.12 - Develop innovation strategy and framework (19952)
    • 1.2.3 - Select long-term business strategy (10039)
    • 1.2.4 - Coordinate and align 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 - Execute 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)