Personnel cost of the phase 'generate new product/service ideas' per $1,000 revenue

This measure calculates personnel cost (per $1,000 revenue) of 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. Personnel cost refers to employee salaries/wages, bonuses, benefits, etc. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "define product/service development requirements."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
102926
Total Sample Size:
441 All Companies
Performers:
25th
Median
75th

Compute this Measure

Units for this measure are dollars. Lower values are better.

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Personnel cost to generate new product/service ideas / (Total business entity revenue * 0.0010)

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.
For government/non-profit organizations, please use your non-pass-through budget. 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 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.

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

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.