Three methods for quantifying the return on investment from Adoptic-guided innovation programmes.
Measuring the value of innovation support is challenging, but essential for justifying investment and demonstrating programme effectiveness. Adoptic provides three complementary methods for quantifying the value of progress achieved through its framework.
The ExPost method calculates value retrospectively by comparing actual outcomes against the expected baseline failure rate. It follows seven steps:
| Step | Action |
|---|---|
| 1 | Calculate the average expenditure per project across the programme |
| 2 | Apply the baseline 90% failure rate to determine expected losses without intervention |
| 3 | Count the number of Adoptic-guided projects that achieved successful outcomes |
| 4 | Calculate the cost savings from projects that would have been expected to fail but succeeded |
| 5 | Calculate the value of additional successes above the expected 10% baseline |
| 6 | Sum the cost savings and additional success value |
| 7 | Compare total value against the cost of the Adoptic programme to determine ROI |
This method is straightforward and compelling for stakeholders because it works with actual outcomes and real expenditure figures.
The Score-Based method quantifies value using the structured scoring data that Adoptic generates for every project. It works as follows:
This method provides a granular, quantitative measure of progress that does not depend on waiting for final adoption outcomes. It can be calculated at any point during a programme.
The Extended method builds on Method 1 by incorporating an additional source of value: savings from informed project discontinuation.
Not all projects should continue. One of the most valuable outcomes of rigorous evaluation is the ability to identify, early, those projects that are unlikely to succeed. When teams make informed decisions to discontinue projects based on Adoptic's evidence-based assessment, the organisation saves the resources that would otherwise have been invested in a project destined to fail.
This method recognises that knowing when to stop is as valuable as knowing how to succeed. It captures the full picture of value created by evidence-based decision-making.
| Method | When to Use | Strength |
|---|---|---|
| ExPost | After outcomes are known | Uses real outcomes; easy for stakeholders to understand |
| Score-Based | During or after a programme | Does not require final outcomes; measures progress continuously |
| Extended | After outcomes are known | Captures full value including savings from informed discontinuation |
Each method provides a different lens on the same underlying question: what is the return on investment from evidence-based innovation support? Used together, they present a comprehensive picture of value creation.