NEW DEVELOPMENT PROCESS METRICS 1) What was the average cycle time in days for completed products in the Mini-smart fridge portfolio? 2) What percentage of all products that went to market within the last five years were within budget? 3) What percentage of all projects completed within the last five years resulted in a product to market? OVERALL INNOVATION PERFORMANCE 4) What is the firm's return on innovation? (ratio of firm's total profits from new projects to total expenditures) 5) What is the firm's ratio of successful projects (products that went to market) to its total project portfolio?

Project Portfolio Project it Start Date End Date Product to Market? Within budget? Estimated Budget Actual Cost Revenue Generated Desk Widget P1 1:1:2000 1251:2005 No 5 1,000,000 5 4,200,000 5 5,200,000 5 - Desk Widget P2 1:1:201? 1251:2019 s {2,000,000)$ 120,000,000 $ 113,000,000 5 300,000,000 Desk Widget P3 1:1:2003 1251:2004 s {2,000,000)$ 25,000,000 5 24,000,000 5 - Desk Widget P4 1:1:2005 1251:2010 5 1,000,000 5 4,000,000 5 5,000,000 5 - Desk Widget P5 1:1:2013 1251:2021 5 1,000,000 $ 200,000,000 $ 201,000,000 Mobile Widget P5 1:1:2020 12:31:2021 5 100,000 5 500,000 5 5 - Mobile Widget P7 1:1:2005 12:31:2010 $ 50,000) $ 200,000 5 Mobile Widget P3 1:1:2009 12:31:2010 5 1,000,000 $ 200,000,000 $ 201,000,000 5 350,000,000 Mobile Widget P9 1:1:201? 12:31:2013 s {100,00ols 4,000,000 5 3,900,000 5 3,900,000 Mobile Widget P10 1:1:201? 12:31:2019 5 200,000 5 2,000,000 5 2,200,000 5 4,000,000 Mini-smartfridge P11 1:1:2013 1251:2020 5 1,000,000 5 4,200,000 5 5,200,000 Mini-smartfridge P12 1:1:2019 1251:2020 5 {2,000,000} $ 120,000,000 $ 113,000,000 20,000,000 Mini-smartfridge P13 1:1:2020 1251:2021 5 30,000,000 $ 750,000,000 $ 790,000,000 Mini-smartfridge P14 1:1:201? 1251:2021 5 1,000,000 5 4,000,000 5 5,000,000 120,000,000 Ml'nl-smartfrl'dge P15 1:1:2018 12:31:2021 S {100,000} S 4,200,000 S 4,100,000 900,000 Marketing P15 1:1:2005 12:31:2010 s 5 700,000 5 Marketing P1? 1:1:2009 12:31:2010 s 5 500,000 5 Marketing P13 1:1:2020 12:31:2021 $ 350,000 $ 400,000 5 Marketing P19 1:1:2013 12:31:2021 5 (220,000) 5 570,000 5 Marketing P20 1:1:2020 12:31:2021 50,000) 5 430,000 5 TOTALS 5 1,535,420,000 5 1,103,300,000