In the Business Model & Innovation dimension, normalization is best by scale of operations or financial metrics, with some normalization already by revenue. Which option captures this?

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Normalization in this area is about making metrics comparable by removing differences in company size. For Business Model & Innovation, you want to relate performance to how large the company's actual operations are—the scale of activity—so you can compare how efficiently or intensely a company pursues innovation relative to how much it actually operates. Normalizing by scale of operations adjusts for differences in size (units produced, customers served, etc.), letting you compare peers on the same footing.

Normalizing by revenue can hide underlying differences. Revenue varies with pricing, product mix, and market conditions, not just the amount of activity, so it can obscure true differences in how the business scales its innovative efforts. Normalizing by geographic region or by number of product lines introduces other distortions that don’t consistently reflect operational footprint or activity level.

Thus, normalizing by scale of operations provides the most apples-to-apples comparison for this dimension, aligning the metric with actual activity and output.