Return on Retrospectives (ROR) = Innovation

Thursday, July 8th, 2010

In a comment on an article about Pixar in The Economist, Tom Agan from the Nielsen Company, writes:

“At The Nielsen Company we have just completed a study of the major consumer packaged goods (CPG) companies operating in the U.S. and those with standardized post mortems for new products, like Pixar, average almost 100% more revenue from new products compared to those that don’t…I think through articles like this and new research that quantifies the impact, we are coming much closer to uncovering the universal truths of innovation.”

I’m willing to put up with The Economist (and Pixar) using the term “post-mortem”, when it results in such lovely and validating statistics as those above. “…the universal truths of innovation”…Indeed!

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