Accounting Quote by John Kao
“There are some pretty obvious ways of benchmarking creativity. One way is to perform what I call a creativity audit, which is to look at your capabilities and look at your performance and examine the percentage of revenue that comes from products that are less than five years old, less than three years old and that are current with the present accounting period. You can then compare those figures to those of your competition along the same axes.”
About This Quote
Source Speech: Business Innovation Talk, John Kao, 2010
Creativity can be measured by the share of recent products in revenue and comparing it to rivals.
In simple terms: Measure new-product revenue share versus competitors.
Key Takeaway
Track and improve recent product revenue.
Themes
innovation
measurement
competition
strategy
Mood
analytical
strategic
critical
Type
business
performance
insight
When to use this quote
- product development
- market analysis
- strategic planning
- performance review
Key Concepts
product lifecycle
revenue analysis
benchmarking
Questions to Reflect On
- How does your industry’s product cycle affect this metric?
- What non‑creative factors could skew the numbers?
A Different Perspective
Revenue from newer products may be influenced by market cycles, not just creativity.
