Post on 31-Mar-2015
FROM INSPIRATION TO FROM INSPIRATION TO PERSPIRATIONPERSPIRATION
Steve Rogers, SopheonSteve Rogers, Sopheon
Post-War NPDPost-War NPD
Du Pont pamphlet ‘cellophane’
Pet RocksPet Rocks
Aiming for successful new productsAiming for successful new products
CompetitionCompetitionMarketsMarkets
TechnologyTechnology Speed, efficiency, and quality
Pace of change
Global competition
A blend of approaches for effective NPDA blend of approaches for effective NPD
• Product –led innovation– New Technologies– Accidental inventions
• Market-led innovation– Market research and demand– Regulatory change– Competitive challenges
• Asset-led innovation– Brand strength– Domain expertise– Factory capacity
How fuzzy is Innovation?How fuzzy is Innovation?
Gate 0 Gate 1 Gate 2 Gate 4 Gate 5
DevelopmentScoping Testing & Validation
Gate 3
Build Business
CaseDiscovery Launch
Concept Development Concept-to-LaunchIdea Development
How Fuzzy is Innovation?How Fuzzy is Innovation?
What is the ‘Front End’What is the ‘Front End’
Idea Idea BankBank
Market DrivenMarket Driven
Technology DrivenTechnology Driven
Applied Applied ResearchResearch
White Space White Space FindingFinding
Fundamental Fundamental ResearchResearch
Focus Focus GroupsGroups
VOC or VOC or InsightsInsights
Idea Idea CampaignsCampaigns
Strategic Business and Strategic Business and Product PlanningProduct Planning
New Product Development Technology Development
Concept
Concept
Concept
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
IP Disclosure
Concept Development
Procurement
Licensing Additional research
EMPIRICAL NPDEMPIRICAL NPDMeasuring InnovationMeasuring Innovation
Empirical NPD: Measuring InnovationEmpirical NPD: Measuring Innovation
Identifying critical success factorsIdentifying critical success factors
• Research by academics and consultancies to find out differences between ‘winners’ and ‘losers’ – Booz-Allen – Cooper & Edgett – Clark & Wheelwright – McGrath
Success storiesSuccess stories
What has gone on... What some have achieved...
Over 50% of executives are dissatisfied with the return on innovation spending Boston Consulting Group; Innovation 2005
Parker Hannifin: Increase in organic growth of approximately $500M Corning: 15% increase in revenue from key product line
Over 36% of top managers (Senior VP and above) say their companies govern innovation in an ad hoc manner. September 2007 McKinsey Quarterly Survey of Business Executives
Aberdeen Study: 75% of best-in-class tool’s clients see adoption rates of 75-90%, far ahead of industry averages
Percent R&D spent on new products ranges from 3% (worst performers) to 50% (top performers) David Drickmamer, Industry Week, Jan 2004
Glatfelter: Saw 10-15% more ideas evaluated 500% increase in highly innovative new products
>70% of projects take longer than expected Elite Consulting
Top performers time to market less than ¼ of worst performers David Drickmamer, Industry Week, Jan 2004
Fortune 50 Bank: Reduced time-to-market by 10% and reduced standard deviation of target launch dates by 50%
KPI ExamplesKPI Examples
Key Performance Indicators Bottom 25% Median Top 25%
Percentage of sales from products launched the previous year 10% 15% 25%
Time to market 258 days 150 days 60 days
Products launched on budget 50% 75% 90%
Products launched on time 30% 60% 86%
Percent R&D spent on new products 3% 25% 50%
4 Measures4 Measures
Better value for each new product, improvement in product mix: New to the World : Line-extension
Better success rate for the new products launched – more achieve the predicted revenue/margin
Greater throughput of products – more launches with proportionally less resource
Shorter time to market for each new product - each extra week available for sale = more revenue
Instant AuditInstant Audit
MOVING FORWARDMOVING FORWARDTaming the tiger, turning creativity into a process at the fuzzy front endTaming the tiger, turning creativity into a process at the fuzzy front end
Bringing StructureBringing Structure
• Cooper & Edgett’s work on Stage-Gate™ gave substance to the Development Process
• Through research of successful products, they defined – factors that indicate product success,– decision points to assess those factors– deliverables that measure those factors– and a process to hang it together
Bringing Process into the Front EndBringing Process into the Front End
Idea Idea BankBank
Market DrivenMarket Driven
Technology DrivenTechnology Driven
Applied Applied ResearchResearch
White Space White Space FindingFinding
Fundamental Fundamental ResearchResearch
Focus Focus GroupsGroups
VOC or VOC or InsightsInsights
Idea Idea CampaignsCampaigns
Strategic Business and Strategic Business and Product PlanningProduct Planning
Concept
Concept
Concept
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
Knowledge Knowledge DiscoveryDiscovery
Concept Development
New Product Development
Procurement
Licensing Additional research
Technology Development
IP Disclosure
Idea Campaign ProcessIdea Campaign Process
Idea Development ProcessIdea Development Process
Process to Develop IdeasProcess to Develop Ideas
Completing the CampaignCompleting the Campaign
Connecting ProcessesConnecting Processes
Here’s an idea from this campaign that has been
taken through to ‘Concept Development’
Here’s an idea from this campaign that has been
taken through to ‘Concept Development’
Trace the idea in to concept development
Trace the idea in to concept development
FRONT-END PORTFOLIO FRONT-END PORTFOLIO MANAGEMENTMANAGEMENT
Corporate criteria to find great ideas?Corporate criteria to find great ideas?
Portfolio PrioritizationPortfolio Prioritization
Assess, Monitor & ReviewAssess, Monitor & Review
MANAGING FUZZY CONTENT AT MANAGING FUZZY CONTENT AT THE FRONT OF NPDTHE FRONT OF NPD
The last bastion of fuzzy?The last bastion of fuzzy?
Success factors at the front endSuccess factors at the front end
• Process Process – Effective assessment and screening – connectivity – doesn’t drop into a black hole
• PortfolioPortfolio, measurement and continuous improvement• Culture of innovationCulture of innovation, engagement of people, blend of
disciplines (process adoption)• The capture and application of organisational organisational
knowledgeknowledge– Even this isn’t as ‘fuzzy’ as we tend to think
• Structure in unstructured content• Tools for the job
Organisational KnowledgeOrganisational Knowledge
• Know what you know– Have we done this before– Example: State funded research agency• Proportion of research being repeated?
– Example: Chemicals industry• IP Disclosure failures?
Shared Shared drivesdrives
Monitor for Knowledge DiscoveryMonitor for Knowledge Discovery
newsnews
Internal Internal sourcessources
Tech Tech specsspecs
Best Best PracticesPractices
Document Document MgmtMgmt
StandardsStandardsIndustry Industry JournalsJournals
RegulationsRegulations
Idea Idea BankBank
ProjectsProjects
Related Related DocumentsDocuments
ProductsProducts
External sourcesExternal sources
PatentsPatents
KnowledgKnowledge e
DiscoveryDiscovery
KnowledgKnowledge e
DiscoveryDiscovery
Whitespace Deliverable 3:Whitespace Deliverable 3:Free Space Matrix – for each CompositeFree Space Matrix – for each Composite
Data has been randomised for reasons of confidentiality
Whitespace Deliverable Whitespace Deliverable 4: 4: Impact for research portfolioImpact for research portfolio
Some current initiatives are not ‘Free to Operate’
Some current initiatives are not ‘Free to Operate’
Opportunity for new initiatives and partnerships
Opportunity for new initiatives and partnerships
Data has been randomised for reasons of confidentiality