Innovation pipeline strength (IPS)

Innovation pipeline strength (IPS) estimates the future value represented by innovations in development. It helps leaders judge whether the portfolio is sufficiently valuable, balanced and credible to support future growth or service improvement.

When to use it

• Answer the key performance question: “To what extent have we got a strong innovation pipeline?”
• Assess this KPI within the Operational processes and supply chain perspective.
• Define the valuation horizon, evidence requirements, formula, review cadence and data ownership.
• Compare scenarios and trends rather than relying on a universal benchmark.

Origins

Pipeline measurement developed from portfolio management and staged product-development systems. Robert G. Cooper’s Stage-Gate research made the progress and attrition of ideas through explicit decisions visible to managers. IPS is a composite application of that logic: its usefulness depends on adjusting opportunity value for evidence, strategic fit, timing, development risk and likelihood of launch, not merely counting projects.

What it is

Perspective: Operational processes and supply chain perspective.

Key performance question: To what extent have we got a strong innovation pipeline?

Spending on R&D is an input, not evidence of valuable innovation. IPS looks forward by estimating the revenue or other defined value that active opportunities could generate and the probability that each will reach market or operation.

A strong pipeline is not simply a large total. It should have enough quality, diversity, timing and capacity to survive normal attrition without hiding duplicate assumptions or excessive concentration.

How to use it

Measurement

Data collection method

List material innovation projects and record their stage, strategic purpose, target customer, expected launch, value range, cost to complete, key assumptions and evidence quality. Keep commercial owners and independent reviewers involved so enthusiasm does not become the forecast.