ROI Institute, Inc. is pleased to announce the release of the new book, The Value of Innovation: Knowing, Proving, and Showing the Value of Innovation and Creativity, published by Wiley. Written by ROI Institute founders, Jack J. Phillips and Patti P. Phillips, this book focuses on building a credible innovation evaluation processโ€”one that will generate a balanced set of data that are believable, realistic, and accurate, particularly from the viewpoint of sponsors and key stakeholders.

โ€œThe conversation about innovation takes place in every type of organization and in every part of the world,โ€ said Dr. Patti Phillips, President and CEO of ROI Institute. โ€œUnderstanding the importance of innovation and taking the necessary steps to make it successful is vital for todayโ€™s organizations. Unfortunately, too much investment in innovation fails to deliver results. This can be prevented.โ€

โ€œThis book has been in development for several years,โ€ she added. โ€œIn addition to applying the ROI Methodology with many clients and participants, we explored what is available now and the need for an evaluation system that is appropriate for todayโ€™s innovation supporters.โ€

The results were clear. An innovation evaluation process must meet these requirements:

  1. The process must systematically show the value of the innovation process as it unfolds logically.
  2. The process must be dynamic, to make adjustments along the way, as enablers and inhibitors are identified.
  3. A variety of data is necessary, ranging from qualitative to quantitative, taken from different sources in different time frames.
  4. Both financial and non-financial data are needed, which means that the financial ROI must be an important part of the process to be CFO-friendly.
  5. The hard-to-measure and hard-to-value measures are still important and need to be an important part of this process.
  6. The process must be able to predict success before the innovation project is implemented in a ROI forecast, as well as a follow-up ROI evaluation.
  7. The process must be based on sound theories and theoretical frameworks. It must be researcher- and professor-friendly.
  8. It must have standards that guide the use of the process and these standards must be conservative for executives to buy into, and support, them.
  9. The process must be user-friendly, void of complicated mathematics and long, complicated tasks.

When these requirements are considered, the ROI Methodology developed by the ROI Institute meets them and then some.

โ€œThe methodology presented in this book approaches credibility head-on through the use of balanced categories of data,โ€ explained Dr. Jack Phillips, Chairman of ROI Institute. โ€œThese include input and five levels of outcomes:

  • Level 0 โ€“ Input (people involved and costs)
  • Level 1 โ€“ Reaction to the innovation process
  • Level 2 โ€“ Learning to make the innovation process successful
  • Level 3 โ€“ Application (taking action, following the process to make innovation successful)
  • Level 4 โ€“ Business impact (the business measures)
  • Level 5 โ€“ The financial ROI.โ€

In addition to the balanced categories of data, the ROI Methodology includes:

  • A logical, systematic process
  • Guiding principles, a conservative set of standards
  • A proven methodology based on thousands of users
  • An emphasis on implementing the methodology within an organization to ensure that the process is sustained
  • A procedure accepted by sponsors, clients, and others who fund projects

โ€œMany executives are frustrated with the disconnect between investing in ROI (Level 0) and the innovation products and services (Level 4),โ€ he added. โ€œThis topic is very important and relevant right now. There tends to be a breakdown between inputs and outcomes that stalls the innovation efforts of many organizations. This methodology ensures that breakdowns rarely occur.โ€

The ROI Methodology, which has become the most-used evaluation system in the world, is built around three pillars: 1) It is user-friendly, not overly complicated or complex; 2) It is based on sound principles, using an enhanced logic model, and is very reliable and valid from a research perspective; 3) Finally, it is CEO- and CFO-friendly, producing data that passes the scrutiny of the CFO and provides data that top executives can support.

The book is available from Amazon, the publisher, or wherever quality books are sold. For more information about The Value of Innovation, or to purchase your copy from ROI Institute at a launch discount, please click here.

About ROI Institute

ROI Institute, Inc., founded in 1992 as a service-driven organization, assists professionals in improving programs and processes using the ROI Methodologyโ„ข developed by Dr. Jack J. Phillips and Dr. Patti P. Phillips. This Methodology is the global leader in measurement and evaluation including the use of return on investment (ROI) in non-traditional applications. ROI Institute regularly offers workshops, provides consulting services, publishes books and case studies, and conducts research on the use of measurement and ROI. This makes ROI Institute the leading source of content, tools, and services in measurement, evaluation, and analytics. Working with more than one hundred ROI consultants, ROI Institute applies the ROI Methodology in 20 fields in over 70 countries. ROI Institute authors have written or edited over 100 books, translated into 38 languages. Organizations build internal capability with the help of ROI Institute and its ROI Certification process.  By successfully completing this process, individuals are awarded the Certified ROI Professional (CRP) designation, which is respected by executives in organizations worldwide. For more information on ROI Institute, please contact info@roiinstitute.net or visit www.roiinstitute.net.