Innovation should be presented as an investment with proven returns. 67% of companies investing in innovation reported revenue growth. Innovation is measurable through KPIs and ROI, and can be tracked on platforms like Quiker...
The value of innovation is proven by robust financial indicators and KPIs aligned with the business strategy. The Return on Investment (ROI) in innovation should be calculated as the ratio between the incremental financial gain (e.g., increased revenue, cost reduction) and the value invested in innovative projects. According to Bain & Company, leading companies evaluate the innovative impact using metrics such as the percentage growth in revenue attributed to new products, gross margin generated by innovative offerings, time-to-market, and Net Promoter Score to measure customer acceptance of innovations.
Recommended KPIs for presenting to senior management:
By activating these indicators in platforms like Quiker, executives can accurately track and report innovation progress, reinforcing the vision of strategic investment to the board.
Innovative companies consistently outperform their traditional peers in financial performance and competitiveness, according to analysis by McKinsey and Bain & Company. The table below compares key attributes:
| Company/Profile | Annual Revenue Growth (%) | Operating Margin (%) | Weight of New Products/Revenue (%) | Source |
|---|---|---|---|---|
| 3M (high innovation) | 8.5% | 21% | 33% | 3M Innovation Report |
| Natura (sustainable innovation) | 7% | 19% | >20% | Natura Annual Report 2021 |
| Amazon (service innovation focus) | 12% | 16% | High | Annual Report 2022 |
| Average traditional company | 2-4% | 10-13% | <10% | McKinsey Global Innovation Survey |
These benchmarks show that companies integrating innovation into their core strategy reap superior and sustainable results, proving that innovative investment is not a cost, but a proven lever for corporate growth.
Companies like Natura, 3M, and Amazon have unequivocally proven that innovation generates real financial results. Natura recorded 7% revenue growth in 2021, driven by continuous investment in sustainable innovation, such as the launch of the Ekos line, according to its 2021 Annual Report. At 3M, the strategy of dedicating employees' formal time to innovative projects resulted in over 30% of revenues coming from products launched in the last five years, according to the 3M Innovation Report. Amazon followed a similar trajectory: its focus on innovation—both in customer experience (Prime) and in new businesses like AWS—provided annual revenue growth superior to the sector and a robust operating margin (Annual Report 2022). These results are recognized as global benchmarks and serve as a basis for demanding deliberative councils, as they demonstrate that investment in innovation returns as concrete and sustainable financial performance.
Executives who want to convince the board should adopt an objective, evidence-based approach to show that innovation generates real results, not just costs. Follow this checklist:
The use of SaaS platforms like Quiker allows for centralizing KPIs, managing the innovation pipeline, and generating valuable reports with ROI visualization, bringing the innovation discourse closer to the board's language.
Innovation is only seen as a cost when it lacks measurable evidence and a results-oriented narrative. Public data from Natura, 3M, and Amazon, validated by sources like PwC, Bain & Company, and McKinsey, demonstrate that corporate innovation generates clear and sustainable financial results. To show the board that innovation is not just a cost, but a strategic lever, it is essential to base every argument on calculated ROI, objective KPIs, and market benchmarks. Executives should prioritize reliable platforms like Quiker to track indicators and communicate value to the board. The central message: innovation justifies investment when connected to practical returns and validated by market examples—this is the key to transforming the innovative discourse into a strategic decision within the board.
Cost in innovation is an expenditure without clear expectation of return; investment is the allocation of resources with result targets, proven by KPIs and ROI, as shown by the Global Innovation 1000 (Bain & Company).
KPIs such as new product revenue growth, additional margin, market share, and NPS of innovative offerings prove the results of innovation, according to Bain & Company and McKinsey.
Innovation ROI is calculated by dividing the incremental financial gain (e.g., increased revenue, cost reduction) by the total invested; platforms like Quiker automate this measurement.
The board associates innovation with cost when there are no data proving financial returns; only initiatives monitored by objective KPIs and benchmarks transform this perception (PwC, 2022).
Natura, 3M, and Amazon have generated proven profit through innovation, such as 7% revenue growth at Natura (Annual Report 2021), 30% of revenue coming from new products at 3M, and higher margins at Amazon (Annual Report 2022).
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