For every business, small, medium, and large, innovation is key to success. It is not necessarily about thinking up new things in the first place but about exploiting opportunities profitably and ahead of rivals. Innovation is the process that involves the whole company and its all disciplines to come up with new ideas. It is not enough that the company is innovative, so it will come up in the market. The competition in the market is tremendous. Every company is going for innovative products. So whatever you produce must be innovative enough to beat other products. The project “Innovation matrix for new ideas” focuses on this aspect of business. Is it possible to rank your innovative ideas? Focus is to answer this question. The work started with knowing basic definitions and differences between innovation and invention. Then reading papers on innovation processes and types of innovation. Various ways to make a matrix like these were analyzed. One of them is a QFD matrix, which tells the customer voice. In the later part of the project, the QFD matrix is used as an extension of the innovation matrix. The innovation matrix developed gives the innovation index of an idea considered as compared to present products taken along with it.